Securities

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On a green "Opportunity" square, you can get an offer to invest: in business, real estate, or financial securities. Let's talk about the latter.

First of all, you should decide which type of securities you want to work with. You can buy some stocks, invest in mutual funds, cryptocurrency, or precious metals.


Gold and Silver

The precious metals market is the simplest one: you buy gold or silver and deposit it into your bank account. Precious metals are the least susceptible to exchange rate fluctuations.

  1. Specify the amount of gold (or silver) you want to buy.
  2. Click on the "Purchase" button.
  3. Drag the price of your purchase into Assets.

The purchase price and current market price of your investment are displayed in Assets so that you can decide whether you should sell your Assets to lock in your profit. The exchange rate of securities of all types changes every month.

To see current exchange rates, click on the graph above the Balance Sheet and find the metals' prices.

If you want to sell your gold and/or silver, click on the icon with the coin on it.

You can buy any assets at any time if you’ve attended the “Trading” seminar, or when playing on a tablet/laptop.


Stocks

Investing in stocks bears more risks, but potentially offers more return.

To buy stocks:

  1. Specify the number of stocks you want to buy.
  2. Click on the Purchase button.
  3. Drag the price of your purchase into Assets.

The "buy low, sell high" approach is generally preferred. You can also make money using a "sell high, buy low" strategy: when you borrow some stocks and pay for them later. It's called Short Selling.

Short Selling

1st example:

First move: at a ₮100 per stock, the Player borrows 100 stocks, taking a short position. Stocks' price goes into the Player's assets, but they don't spend any money.

Second move: Stock's price goes down to ₮90. The Player buys 100 stocks at 90 each (₮9.000 overall) and closes the position. Then, the Player returns the stocks they've borrowed and gets ₮10.000 overall. So, the profit is ₮1000.


2nd example:

First move: at a ₮100 per stock, the Player borrows 100 stocks, taking a short position. Stocks' price goes into the Player's assets, but they don't spend any money.

Second move: the price goes up to ₮110 per stock. The Player buys 100 stocks at 110 each (₮11.000 overall) and closes the position. Then, the Player returns the stocks they've borrowed and gets ₮10000 overall. So, the loss is ₮1000.


You have to return the money on time, even if the exchange rate goes up.


To close a short position:

  1. Click on the title of your stock in the list of Liabilities.
  2. Specify the number of stocks you want to close.
  3. Click OK.
  4. Cross the stocks' price off the list of Liabilities.

If you don't have enough money to close your position, you'll be forced to file for bankruptcy.


Mutual Funds

Mutual funds is the last type of securities you can make money off. It has a diversified portfolio of assets, selected by the fund company. The company is interested in your financial success, as it charges a certain fee on every sale of shares or units.

If the market goes up, an open-end fund goes up along with it, but if the market goes down, an open-end fund goes down only by half. For an investor, mutual funds are riskier than precious metals but safer than stocks.

To invest in a mutual fund:

  1. Specify the number of shares you want to buy.
  2. Press the "Purchase" button.
  3. Drag the price of your purchase into Assets.


Summary

Securities allow you to invest and not waste a lot of time. Precious metals is a low risk, low reward type of investment. Mutual funds are a bit riskier and a bit more profitable. Stocks are high risk, and, possibly, a high reward (and with stocks, you can make money even when the market is down). After you purchase securities, monitor their prices in the Stock Market window.

To sell your securities immediately, select the needed asset, and click the "Sell" button.


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