Stock Allocation

Hi,

I've got a few questions on the allocation of stocks (in particular, ones that aren't part of a bundle):

How does stock allocation work for stocks that aren't in a bundle?

How many stocks are initially allocated and at what price?

Is the allocation ever increased during the life of the stock?

Are all the buy and sell offers only from other members or are some from iPredict itself?

Why don't you show how many total stocks a prediction has allocated?

Hi there,
I will answer what I can:

Stock is determined by the number of people available to trade or, early in trading, by a Market Maker which increases liquidity at the start & a little throughout the contract's duration.

I don't know how many stocks the market maker offers all up, sorry.

The system determines how many available stocks there are to trade and allows you to do that many trades.

Initial price is a judgment call by admin - I'm not certain there ever is a specific number of stocks allocated.

For stocks that aren't market maker or part of a bundle:

'Person X' bets $0.5000 that 'Stock A' will close at $1.000 by creating a BUY offer at $0.5000

'Person Y' bets $0.5000 that 'Stock A' will close at $0.000 by taking 'Person X's' bet with a SELL offer at $0.5000

These two offers are matched.



Person X now has 1 stock

Person Y now has 1 stock shorted


When the stock closes, it will cancel out to 0.

So for every positive, a negative is created and vise versa.



Did that make sense?