Game Manual

DEAL IT

G ame M anual Deal It Game Manual

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1. Introduction

Interested in knowing more about Corporate Finance? DEAL IT is just the right move for you! DEAL IT is a board game that had adopted monopoly style but with different concepts embedded in the game. It aims to let you gain knowledge about Corporate Finance and Advisory Services. It would be beneficial for curious minds of yours on the finance activities that merchant bank, bank, private company and public company engage in. Through this game, you will be able to master the knowledge of how private companies can be listed on SGX to become public companies, how companies are able to get funds to finance their operations (e.g. Venture capitalist, IPO etc.), how the companies’ share price are affected by the environment and many more. Learning is never ending! Beside the above mentioned, you are able to have a taste of how world news are able to affect the share price and what can you do to maximize your portfolio and minimize the possible loss. Have a wonderful learning experience filled with loads of fun and excitement. Get your hands on DEAL IT now! 2. Materials Used For The Game a. Game Board

b. Two Dice

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c. Six Pictured Cubes which are figurines used in the game

d. One Marker and Eraser

e. Cash Notes

f. Five Different Game Cards

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g. Deal It Profit Record

h. Live Market Share Price Record

3. Getting Started a. Recommended number of players for this game is 1 to 6. b. Each player is to choose a figurine to represent him/her. Place all figurines at the

“start” box on the board game. c. Select a banker among all the players to handle the cash notes, public companies’

card, private companies’ card and recording of the changes in the share price of public companies.

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d. Each player will receive $1.5 million worth of cash before the start of the game.

i. Five $10,000 ii.Three $50,000 iii.Two $100,000 iv.Three $200,000 v.One $500,000 e. Each player will receive a “Deal It Profit Record” to record down the amount of cash

on hand each year. The amount of cash they have would represent the profit they have yearly. f. Each player to roll the dice to decide the sequence of flow. Player with the biggest

number will go first. g. Place the 3 stacks of game cards [Blink-O, Lottery and News@Live] on its respective

box stated on the board game.

h. Explanations for the types of cards i. News@Live a. It is a situation card whereby it shows the changes in the economy and how it can affect the share prices of the different companies.

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ii.Blink-O a. It is a question card on the basic concepts of Corporate Finance and Advisory Services. b. Banker to award player $10,000 for every right answer. c. No penalty given for wrong answer. (Refer to Answer Booklet for the answers)

iii.Lottery a. It is a bonus question card which will educate players on a higher level knowledge of Corporate Finance and advisory questions. b. It functions like real life lottery. Players will get the chance of taking risk which takes place in the corporate world frequently. c. Player can choose to answer the question or forgo the chance of answering. d. Minimum sum of $10,000 will have to be paid for answering the question. e. If answer given is correct, player will get double the amount they paid to answer the question. [e.g. paid $10,000, player will get $30,000 ($20,000 profit + $10,000 principal) back] f. If answer given is wrong, player will not get a refund on the amount paid to answer the question. [e.g. $10,000 banker will keep] (Refer to Answer Booklet for the answers).

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iv.Share Certificate a. It is a share certificate of public company on the board game. b. It will be given to the player who purchases at least 1 lot of shares of the public company to show entitlement. c. The maximum number of shares each player can buy each time they step into the company box is 3 lots. d. 1 Share Certificate = 1 Lot of shares = 1,000 shares e. Each company has 6 lots which mean 6 cards each and there is total of 72 cards. f. Current market share price stated on the card is the initial share price of the company when the game is started. g. Share price is subjected to changes due to the sensitivity to News@Live. h. List of Companies found in (Appendix 1)

v. Private Card a. It is a listing card for private companies on the game board to show entitlement. b. Players will be able to list the private companies to SGX provided they fulfill the listing criteria. c. Listing Criteria: Consolidated Pre-Tax Profit of at least S$7.5 million for the last 3 consecutive years, with at least $1.0 million per year. [Refer to Appendix 3 for more criteria used in listing companies, but we will only be using Criteria 1 in this game] Deal It Game Manual

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d. Players can use the “3 consecutive years” to list ONE company only. If he/she

would want to list another company, a new “3 consecutive years” would have to be used as the criteria for listing. [e.g. year 2 to 4 list company A, year 5 to 7 list company B] e. Players will receive the listing card, provided they pay the listing fees stated for the specific company. f. Visitor’s Fee: Players who stepped onto the other player listed company will have to pay the fee stated on the listing card. g. Buy-Over (Mortgage) Price: Holders can choose to mortgage their entitlement to the bank or other players at price stated on the listing card. h. Each private company has only 1 listing card. Therefore there is total of 10 cards. i. List of Private Companies (Appendix 2)

4. Things To Take Note a. First round of the game is the trial round. i. No purchasing of shares on the board. ii.Do not need to record down cash on hand for the first year. iii.Do not need to record News@Live share price. b. Each round of the game deemed as a year. c. All players are only allowed to list private companies after the fourth round provided

they fulfill the criteria for listing. d. Banker will have to ensure the amount of money recorded on the “Deal It Profit

Record” meets the criteria. e. If player becomes bankrupt and has no money to pay for debts [e.g. donation box],

he/she will have to sell the shares on hand to the banker even if he/she has not reached selling point. Deal It Game Manual

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5. Playing The Game

a. Throw the dice to determine the number of steps to take. b. Blink-O Box i. Player that steps in the box will take a Blink-O card from the board and answer the

question stated on the card. ii.Banker to reward $10,000 for the right answer given. Place the card back into the

stack after usage.

c. Lottery Box i. Take a lottery card from the board and answer the bonus question stated on the

card. ii.Pay any sum of money to buy the chance for answering the question. Minimum sum to be paid is $10,000. iii.Banker to reward double the amount paid for the right answer given. [e.g. paid

$10,000, get back $30,000 ($20,000 profit + $10,000 principal)] iv.Banker to keep the principal amount paid for wrong answer given. [e.g. $10,000 banker to keep]

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v.Place the card back into the stack after usage.

d. News@Live Box i. Take a News@Live card from the board and read the instructions stated. ii.Record the new share price on the “Live Market Share Price Record”.

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iii.Place the card back into the stack after usage.

e. Public Company Box [E.g. SBS Transit Ltd] i. Option to buy or sell shares from and to the bank. ii.The total amount to be paid or received depends on the latest share price stated

on the “Live Market Share Price Record”. iii.The minimum lot you can buy/sell is 1 and the maximum is 3 lots for each public

company. iv.Collect the public company share certificate from the banker upon buying the

shares and return the share certificate upon selling the shares to the banker.

f. Private Company Box [E.g. Singapore Pools (Private) Limited)] i. Visitors to pay the player whom listed the private company Deal It Game Manual

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ii.Price to be paid is listed on the listing card the player holds. iii.List the private company: Banker checks on player’s past 3 years profit on the

“Deal It Profit Record” to prove fulfillment of criteria mentioned earlier on iv.Player to receive a listing card from the banker.

v.Player can only sell off/mortgage the company when step into the “Selling Point” box. vi.Player can choose to mortgage the listed private company at the price stated on

the listing card and hand over the listing card to the banker.

g. Instruction Boxes i. Follow the instruction in the box. [E.g. Move 2 steps backward/ Miss a turn.]

ii.Selling Point Deal It Game Manual

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1. Player can sell off shares on hand to the banker. 2. Amount of cash received depends on the latest share price stated on the “Live

Market Share Price Record”.

iii.Trading Point 1. Player can exchange shares on hand with other players with no objections. 2. Strictly no cash involvement.

iv.Bankrupt 1. Player to surrender all cash on hand to the banker.

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2. Allowed to keep your public companies and private company cards.

v.Insider Trading 1. Player caught using own company insider information to trade for his own

benefits. 2. Insider Trading is unethical and illegal in the society. Players should not practice

it. 3. Player would not be able to step out of the box unless he/she pays $200,000.

vi.Donation Box 1. All players to donate $20,000 to the Handicapped Organization. 2. Donation is a form of Corporate Social Responsibility (CSR). CSR is important

as it helps to enhance good corporate image of the company. Deal It Game Manual

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3. Educate players that besides earning profits for companies, they should also

place importance on doing charity work to help the needy in the world.

vii.Income Tax. 1. Player has to pay $40,000 for income tax. 2. In Singapore, it is compulsory to pay income tax to the government. It is illegal

for not reporting and paying your income tax.

viii.Start Box

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1. Collect $300,000 from banker every time you pass by the start box.

6. Winning The Game? a. The game will end after the last player has 12 years of record of profit.

b. All players will need to sell off their public companies’ shares and mortgage private companies to the banker. c. Advice on winning: player should try to predict the movement of share prices in order

to earn profit from selling off and take up risks in answering lottery questions to earn more money. d. Player whom has the most cash will be the ultimate winner.

7. Be A Responsible Player a. Help to pack the materials used in this game back to their respective places Deal It Game Manual

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b. Take good care of the board game when playing

8. Appendix 1

List of Public Companies

Index 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Company Name UOL Group Limited Keppel Corporation Limited City Developments Limited Singapore Airlines Limited Nobel Group Limited Banyan Tree Holdings Limited SBS Transit Ltd Singapore Press Holdings Limited Qian Hu Group Holdings Limited DBS Group Holdings Limited United Overseas Bank Limited NSL Ltd

Share Price ($) 230,000 300,000 280,000 190,000 240,000 250,000 210,000 260,000 220,000 270,000 200,000 290,000

9. Appendix 1

List of Public Companies Deal It Game Manual

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Appendix 2 List of Private Companies Index

Company Name

Listing Fee($)

Visitor’s Fee ($)

BuyOver(Mortgage) Price ($)

1. 2. 3.

Myojo Foods Company (S) Pte Ltd Singapore Pools (Private) Limited Nam Leong Company (Private) Limited Abbott Manufacturing Singapore Private Limited NTT Singapore Pte Ltd Cosco Holdings (Singapore) Pte Ltd Sony Electronics (Singapore) Pte Ltd Pokka Corporation (Singapore) Private Limited Mr Bean Private Limited Nikon Singapore Pte Ltd

300,000 500,000

200,000 300,000

400,000 700,000

200,000

100,000

300,000

250,000 400,000 700,000 550,000

120,000 250,000 350,000 270,000

350,000 550,000 850,000 650,000

400,000 600,000

200,000 300,000

500,000 700,000

4. 5. 6. 7. 8. 9. 10.

Appendix 3 Criteria for listing on SGX Criteria 1: Cumulative consolidated Pre-tax Profit: At least S$7.5 million for last 3 years (consecutively) at least S$1 million a year (in each of those 3 years) Deal It Game Manual

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Criteria 2: Cumulative consolidated Pre-tax Profit: At least S$10 million (for last 1-2 years) Criteria 3: Market Capitalization at least S$80 million (issue price X post-invitation issued share capital), 3 year record in research & development (R&D).

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