The beginning and ending dates of the trading period, as well as the initial cash balance, are specified by each professor. Please note the Trendfund offices will be closed on school and market holidays.

2. TRADING TIMES

Trendfund offers several methods for you to place your trades. Before making any trades, you must be prepared with your account number, password, and the ticker symbols of the securities. The cut off time for all trades is 4 p.m. Eastern time. Any trade made after that time will be processed the next business day. Trendfund is not responsible for trades that are not received or are incomplete.

a. WWW Home Page (www.stocktrak.com/trendfund)

The Trendfund simulation web page is a comprehensive, functional, and educational site. Visit our home page to:

• make trades on your account,
• review your account activity,
• research stocks,
• obtain price quotes and charts,
• and to review your class ranking.

This is the best way to trade because it is fast, accurate, and convenient. Stock and option trades made on the web will be processed at 20 minute delayed prices.

To make a trade on our web page, go to www.stocktrak.com/trendfund, click on "Make a Trade," at navigation menu; and then you can see popup menu for Stock and option. If you wish to trade stocks, click on the stock and submit your stock trades on the stock order screen. If you then wish to trade option, you must then go to the option trading pit. You cannot trade option from the stock order screen.

b. Fax Line (fax number: 678-475-0645)

Students can also fax their trades in 24 hours a day. All faxed trades must be on a single sheet of paper (no cover pages please), and include your account number, password, name, buy/sell, number of shares, ticker symbols, the date and time sent, and a phone number. All fax trades are executed at closing prices. Please call the next day to confirm.

c. Office Hours/Customer Service

If you have questions about your account, you may call for Trendfund customer service @ 1-800-786-8725 during our office hours. These hours are as follows:

When calling, please be prepared with your account number, password, and the trade confirmations that you received from the web page.

3.SECURITIES THAT CAN BE TRADED

STOCKS: You can buy, sell, buy on margin, and sell short all NYSE, AMEX, and NASDAQ stocks (common and preferred) listed in the major financial publications that are trading at $1.00 or more.

Adjustments will not be made for any cash dividend less than $0.25 or any stock dividend less than 2%. Most small-cap stocks cannot be traded; new issues are available within several days of the initial public offering.

STOCK OPTIONS: You may also buy, sell, and write most stock options listed in the major financial publications; LEAPS and options with unusual strike prices are excluded. See Rule #14 for more information on stock options.

4. TRADING TERMINOLOGY

Many people and books use different terminology to describe the same type of transaction. To avoid any communication problems which may occur during the trading process, please refer to the following list of terms that Trendfund uses to place orders for various types of transactions.

STOCKS There are four basic ways in which stocks can be traded. They can be bought, sold, sold short, and covered. When "buying" a stock, you are taking a long position with the hope that the price per share will increase. "Selling" a stock refers to the closing of that long position. "Selling short" is selling a stock that you don't own (you actually borrow the stock from the broker) with the hope that you can later buy the stock back at a lower price. When you buy the stock back to close your short position, it is called "covering" your short position. You cannot hold a long and short position in a stock at the same time. You cannot short against the box.

OPTIONS As with stocks, there are four basic transactions. You can "buy to open" to take a long position in an option and then you can "sell to close" it. The terminology for taking a short position is a bit different. "Writing an option" refers to taking a short position and "buying to close" is the term used to close your short position in the option. It is also important to specify whether you're writing a naked or covered option. When writing a call option, it is considered naked unless a long position is held on the underlying security. Written put options are considered naked unless a short position is held on the underlying security.

5. QUOTED PRICES & VOLUME RESTRICTIONS

Stock, option and futures trades made on the web page will be made at 20 minute delayed prices. All other trades will be made at the "last trade" price of the security for each day. The maximum number of shares each student may trade for any security is limited to one-half of the actual volume of that security on that day. All stock trades must be in multiples of 25 shares. Orders are market orders; limit and stop orders will not be accepted. Occasionally prices vary from one quote source to another. Adjustments will not be made because of price discrepancies, unless the price was outside the range quoted in the WSJ.

To force some degree of diversification, students may not put more that 50% of their initial cash balance into any single stock, option.

6. TICKER SYMBOLS

When making trades, you must know the ticker symbol of the securities to be traded. Stock ticker symbols can be found in The Wall Street Journal, in Investor's Business Daily, and on our web page. (Most city papers show only the abbreviation of the company name, not the ticker symbol.)

Stock option symbols are easily constructed if the ticker symbol for the underlying stock is known. See Rule #14 for more information regarding stock option symbols. When trading mutual funds, the web page is the only source for tickers. Ticker symbols for the index options, futures, futures options, and bonds that Trendfund trades are listed in Rule #18. The symbols for futures and future options can be changed for the desired expiration month according to Rule #15. Index options follow the rule for stock options.

7. COMMISSION

A brokerage commission is applied to all transactions. The commission for most trades made on the web page is a flat $25. For trades that are not made on the web, the commission for stock trades is calculated as $50 plus $5 per 100 shares; for other trades, the commission is $50 plus $5 per contract. Commissions will be charged to both opening and closing transactions.

8. MARGIN REQUIREMENTS

The margin requirement for stock purchases and short sales is 50%. This means that for stock purchases you can borrow up to 50% of the total cost. For short sales, you must deposit an amount equal to 50% of the current market value of your short positions. Starting with $100,000, Trendfund may loan you another $100,000, making your total buying power $200,000 if you are trading marginable securities.

The margin requirement for writing stock options is $1,000 per naked contract and $5,000 for writing naked index options.

9. INTEREST EARNED

Interest will be earned on all available cash balances and credited at the close of each day. Interest will be calculated using a money market rate, currently 5%.

10. INTEREST CHARGED

Interest will be charged on all loan balances and will be debited at the close of each day. The rate will be three percentage points above the money market rate.

11. CALCULATION OF EQUITY

A portfolio's equity or value is calculated as follows:

Cash - Debit bal. + Credit bal. + MV of long positions - MV of short positions
Where Debit = loan balance, Credit = short sales proceeds, and MV = current market value.

12. DISPUTES AND ERRORS

Given the nature of stock price quoting services, prices may vary among sources at any given time. If current prices are not available for any reason, transactions may be posted at the latest pricing date available. When you make a trade on the web page, you will receive a cofirmation. You must keep copies of your confirmations. If you believe an error has been made on your account, please call during our office hours. Don't call without the confirmation number of the trade in question. The management of Trendfund has the ultimate authority to settle disputes.

14. STOCK OPTIONS