Our Deposit Accounts

Here's a list of our accounts you can sends deposits to.

• In-game: TheExchange

• Discover Bank & Vanguard Private Bank: @theexchangeacc

• Volt: Exchange Savings

Exchange Fees

Fees for various Exchange services and products

Regular Traders:

• 1% trade fee on all buy orders.

Exchnage+ Traders:

• 0% trade fee on all buy orders.

Guide to IPOs on The Exchange

A Simple Guide to Conducting an Initial Public Offering (IPO) on The Exchange (X).

Introduction

An IPO marks a significant milestone in the growth of a company, enabling it to raise capital from public investors by offering shares of its stock for the first time. This guide

an overview of the IPO process as it pertains to companies listing on The Exchange, Redmont’s largest and most prestigious stock exchange.

1. Preparing for the IPO

   1. Assessing Readiness: The company's management, with the assistance of legal, financial, and accounting advisors, evaluates its readiness for an IPO. This involves assessing the company's financial performance, corporate governance practices, and market positioning.

   2. Selecting Underwriters: The company selects investment banks to serve as underwriters for the IPO. Underwriters help determine the offering price, facilitate the sale of shares to investors, and provide guidance throughout the process.

   3. Drafting the Prospectus: The company prepares a prospectus, a legal document that provides detailed information about the company, its business operations, financial condition, risk factors, and the terms of the offering.

2. Pricing and Allocation

   1. Determining the Offering Price: Based on market conditions, the underwriters and the company determine the offering price for the shares and the number of shares to issue.

   2. Allocating Shares: The underwriters allocate shares to institutional investors and other clients who have expressed interest in participating in the IPO. Allocation decisions are based on factors such as investor demand, size of orders, and relationship with the underwriters.

3. Trading and Listing

   1. Listing Application: The company submits an application to list its shares on The Exchange. This application includes company financials, prospectus, and other requested information. The Exchange reviews the application to ensure compliance with its listing requirements.

   2. Trading Debut: On the day of the IPO, the company's shares begin trading on The Exchange under the assigned ticker symbol. The opening price is determined by market demand and supply dynamics.

4. Post-IPO Compliance

   1. Regulatory Compliance: The company is subject to ongoing reporting and disclosure requirements mandated by the DOC and The Exchange. This includes filing periodic financial reports, disclosing material events, and complying with corporate governance standards.

   2. Investor Relations: The company maintains ongoing communication with investors, analysts, and other stakeholders to provide updates on its performance, strategy, and future outlook.

5. Conclusion: Conducting an IPO on The Exchange involves a multi-faceted process, requiring careful planning and compliance with regulatory requirements. By successfully completing an IPO, a company gains access to public capital markets, enhances its visibility and credibility, and lays the foundation for future growth and expansion.

Please note that this document provides a high-level overview of the IPO process and may not capture all the intricacies and nuances involved. Companies considering an IPO should consult with legal, financial, and accounting advisors for comprehensive guidance tailored to their specific circumstances.

Exchange+

Exchange+ is a subscription offered by The Exchange that grant's you access to the following features:

1. 0% transaction fees

2. Ability to see live charts of stock prices

3. Transfer shares and money to other people instantly

4. Charts! View past prices for a stock. (How did we even trade without this?)

5. See a full list of every shareholder for any company

6. Get live updates on your orders conveniently sent to your DM's!

7. See market cap, price-to-book ratio, and live price quotes for any stock!

8. And more...

Exchange+ Pricing:

Individual:

30 Days = $6,000

60 Days = $10,000

90 Days = $15,000

Team/Corporate:

Open a ticket for discounted pricing if you're purchasing for your team.

Trading on Margin

What’s margin investing?

Margin investing enables you to borrow money from The Exchange and leverage your holdings to purchase securities. This gives you access to additional buying power based on the value of certain securities in your exchange account. Margin investing can provide flexibility with your cash: if you see an opportunity in the market and want to invest more, you may be able to invest right away without needing to make a deposit from your bank.

Video explanations:

https://www.youtube.com/watch?v=0SGGSqOZhps

https://www.youtube.com/watch?v=eXMhSb4WqZM

Margin transaction examples

Let’s say you deposit $5,000 in cash for a total portfolio value of $5,000. You can now borrow up to $5,000 on margin to buy 100 shares of a stock for $100 per share—for a total of $10,000.

Since $5,000 of your initial purchase was bought on margin, your portfolio value is $5,000 ($10,000 - $5,000 = $5,000).

If the stock price increases to $125 per share, your stock is now worth $12,500.

Since $5,000 of your initial purchase was bought on margin, you now have $7,500 in portfolio value and you owe $5,000 in margin used.

In this scenario, there’s an unrealized profit of $2,500 as opposed to $1,250 if you didn’t invest on margin and only bought as many shares of stock that you could with your available cash (50 shares for a total of $5,000).

What are the risks of margin investing?

Margin investing is risky and it’s not appropriate for everyone. Before considering margin investing, you should fully understand the risks involved. If the security loses value, the losses will be deducted from your account value—not the funds you borrowed—so it’s possible for margin to amplify your losses in the same way it amplifies your gains.

How much money do I need in my account to invest on margin?

To get started with trading on margin you must have a portfolio value (cash + securities) of at least $5,000 deposited into your account before requesting margin. This is called the margin minimum. If your account value drops below your margin minimum you will be at risk of a margin call and the potential liquidation of your portfolio.

What is a margin call?

A margin call refers specifically to a broker’s demand that an investor deposit additional money or securities into the account so the value of the investor's equity and the account value rise to a minimum value indicated by the maintenance requirement.

A margin call is usually an indicator that the securities held in the margin account have decreased in value. The investor must choose to either deposit additional funds or marginable securities in the account or sell some of the assets held in their account when a margin call occurs.

A margin call on The Exchange occurs for one of two reasons:

1. Minimum margin: Your portfolio value falls below our margin minimum of $5,000.

2. Maintenance margin: Your portfolio value falls below 75% of the fund's borrowed.

When a margin call occurs we will request for you to either deposit additional funds into your account or liquidate (sell) the securities in your portfolio until the requirement is satisfied.

So if an investor has $10,000 worth of equity in their margin account, they must maintain a minimum amount of $7,500 in the margin account. If the value of their equity increases to $15,000, then the maintenance margin also rises to $11,250.

Should their equity decrease to $5,000 ($2,500 below the minimum maintenance of $7,500) then the investor will be hit with a margin call. They now have to satisfy the call by depositing $2,500 cash into their account to bring it up to at least $7,500.

Requirements

To get started trading with margin you must meet the following requirements:

• Have a minimum portfolio value of $5,000.

• Be registered on The Exchange for at least 14 days.