This Week's Economic Events

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Explain like I’m a 5-year-old: Short Selling

Imagine making money during a recession. Have you ever been absolutely sure that a stock is overpriced or that its value is going to decline in the near future? Wouldn’t it be amazing if your UMOO portfolio could almost double in value during a “bear market”? Short selling is probably the easiest and most effective way to get that done.

Most of the people who dare to enter into the world of investing think of it as buying a stock or asset, holding onto it while it appreciates and then selling it to make a profit. “Short Selling” or “shorting” on the other hand is the exact opposite. The investor “shorts” a stock to make money – i.e. he only makes money if the stock goes down in value. This is extremely risky but has the potential for soaring returns. Short selling involves the investor selling a stock that he does not own. You must probably be wondering how he could do that. To put it simply, you short sell a stock that your broker has lent you. These stocks may come from the brokerage itself, a customer of this brokerage or even from another brokerage firm altogether. Once you sell these borrowed stocks, you wait for its prices to drop before you buy them back and then return it to the lender keeping a nifty profit for yourself. However, if the price of the stock rises, you are still forced to buy back the same number of that stock at that higher price thereby sustaining a loss. Like mentioned before, high risks but soaring returns.

Imagine this scenario. After hours, days and weeks of research you come to the conclusion that a company ABC is overvalued at $200 and that its stock value is going to fall in the near future. You decide to short this company and hence you borrow 20 shares of this company from your broker and sell them for a total of $4000. After a week or so the company’s share value drops and it begins to trade at $100. You then buy back 20 shares of the company at this lower price and return to your broker keeping a $2000 profit for yourself.
Interesting isn’t it???

However, shorting does have many risks associated with it. For example, when you borrow a stock, you are responsible to ”cover” if the lender demands his stock back irrespective of whether its value has fallen already or not. The technical term for this is known as being “called away”. Furthermore since you don’t technically own the stock you must pay the lender any dividends or rights declared during the course of the loan. Another potential risk is when a number of investors all try to “cover” the same stock at the same time which would eventually drive the stock price up. This was one of the many reasons behind the Market Crash of 1987.

Imagine a scenario where you did not have to worry about numerous risks involved in shorting. You come to the conclusion that the share value of a company is going south and decide to short it without having to worry about being “called away”. UMOO offers that environment.
If your assessment is accurate, you could really boost your chances of winning the trading tournament that you are a part of. Shorting is especially valuable in the One Day Tournaments that we @ UMOO so frequently hosts.

And while we are at the topic of education and 'talking' in clear language, this coming Tuesday (12/5/08) we are running a community game with Whitney Hoffman, the master mind behind LDpodcast, Podcamp and The Podcamp Foundation. Whitney is all about education, and Education 2.0 and its been a true pleasure working with her and her community on this. The two good-looking Gentlemen at the top of the post are James n’ John Hoffman when they were in the 5-years-old vicinity :)

As Robert F. Kennedy once said “Only those who fail greatly can ever achieve greatly”. You have to be willing to take some risks in order to generate profits.
With Shorts you can do exactly that.

Comments? Questions? We’d love to hear your thoughts what should be the next item in our Explain like I’m a 5-year-old series ?

What People are Talking About {11/1-11/24 }

The economy continues to stir things up. Just a few of the recent events include the tribulations of the American automakers, continuing problems with the $700 billion stimulus package, and AIG deciding to handout over $500 million to its top employees.

We’ll be taking a look at what’s popular and what people are talking about most. Listed below are the five most discussed and influential articles of the past week.


Receiving over 2,332 Digg votes was Time Magazine’s article “Why Canada’s Banks Don’t Need Help.” With the Canadian banking system recently voted the most sound in the world, the Erik Heinrich describes how the relationship between the Canadian government and its banks has allowed them to remain secure through the current crisis.

Following closely behind with 1,823 Digg votes, the Washington Post article “AIG to Pay Millions to Top Workers” stirs up debate on whether it is wrong or not for a company that has received government aid for the terrible financial decisions it has made, to spend over $500 million on its top employees. The public appears skeptical about AIG’s need to “keep its valuable works for exiting” when the company is drowning in red ink.

In thirds, with 1,276 Digg votes, the Houston Chronicle’s “Pull Away Blanket of Secrecy on Federal Bailout” rebukes the government’s eschewing of money it is spending on this crisis.

In another online corner, readers of Newsvine have been discussing Msnbc’s “Automaker Bailout Appears in Jeopardy” which chronicles the troubles of the Big Three automakers as they desperately seek government aid. The debate is at the forefront of the media as Democrats push for a bill to keep the automakers afloat, while Congressional Republicans are worried the money won’t be spent on what the companies need most: more fuel-efficient cars and company re-structuring.

Newsvine readers’ second pick was “Paulson, Bernanke Defend $700 Billion Bailout” also from Msnbc. This topic is critical as Paulson announces the changing focus of the bailout plan. Instead of buying toxic assets, the government will now invest directly into the firms to elicit more immediate results.

Today's popular image: Time Cover -- Obama as FDR

Is this is what you are talking about?

I Feel Pretty 2009 :)

We are excited to announce the 2009 I-Fell-Pretty Tournament. Named after the 1961 'I FEEL PREETY' track from West-Side-Story, because let's face it, we all need some 1961/Pretty in our lives these days.
This competition is open to our old-new, novice-experts, republican-democrats, vegetarians-meat eaters A.L.L umoo's past, present and future users.
Let's start 2009 n' feel r.e.a.l.l.y pretty!
Our winners will be announced on the week of January 12, 2009.
This is a guarantee prize event!


Here is how you'll groove with us:

This is a guarantee prize event.
With the spirit of 2009 being your pretty year, we offer six unique opportunities to out top ranked players: The umoo-free-pass.
What's a umoo-free-pass?
Can I pay my bills with this?
Absolutely yes!

Your umoo-free-pass is your free tokens for 2009.
Come play, practice, trade and win, for free.

1st place I Fell Pretty winner receives >> a 6-weeks free pass
2nd place I Fell Pretty winner receives >> a 5-weeks free pass
3rd place I Fell Pretty winner receives >> a 4-weeks free pass
4th place I Fell Pretty winner receives >> a 3-weeks free pass
5th place I Fell Pretty winner receives >> a 2-weeks free pass
6th place I Fell Pretty winner receives >> a 1-weeks free pass

Join now. Feel Pretty.

* For tournament's terms and agreement, please click here

New n' Improved

The new umoo.com is here! We just released our new version which is the culmination of a massive effort to improve performance, connectivity, add new functionality to boot, and most important improve YOUR user experience @ umoo.com.






Major changes in this release include:

Mid-Day Tournaments: now you don't have to wait for next day tournament. Check out our tournament lobby and see what surprises we prepared for you for that day.

Hourly Tournaments: These new fast-paced tournaments, starts on the hour a few times a day. More trading opportunities to meet new players, win and collect different money prizes and more in these hourly tournaments.

Short Cover Orders: be a winner not only when the markets go up but also when the markets go down, sounds familiar, right? :)

+ Improved User Experience: We’ve simplified our interface features based on user feedback and testing. Now we have easier Market Data Access, Tournament Information and, easy access Tournament Lobby.

Our special $10,000 FREE tournament starts Monday, October 20.new players >> Join Us Now.







images credits:http://www.flickr.com/photos/22324137@N07/2872426899/

Wassup, It’s Friday

Friday is always happy times on the planet and, we are no exception.
Wassup! It’s Friday! is the first of what we hope will be a funny series,
{ but you tell us :) } about your umoo's earnings.
How you win depends on U, deposit money, don’t deposit money, you can still win cash! Sounds good right? With our freeroll tournaments, you don’t need to deposit a cent, but you can still walk away with cash to spend – OR - if you want to try your luck in a real money game, you can deposit and compete.

The bottom line is – you win money.
And What do we like to do with extra cash?
Spend it!

After all that hard-clicking-away on your keyboard and winning with umoo, why not cash out your winnings and treat yourself to…….. You’re very own Mr.T, Pamela Anderson or, Elvis!!
Seriously, they can drive you to work, give directions, tell you where to, or where NOT to park!
It's the latest hottest gift: a celebrity GPS

But then again, you may decide that u need more kaash for your next real vacation with your own real personal Pamela or Mr.T, in which case, you’ll need to be hard @ work playing our Friday n' Tuesday massive free roll starting at 9:30AM EST.
We will run a $200 Daily FREE trading tournament ,no need to put any money from your end!

If you missed this week's Friday free roll there is always next one:)
Till our next Wassup, It’s Friday folks………









images credits:
http://www.flickr.com/photos/dmason/

Not over the net, just over the moneyline

Have you checked out the Beach Volleyball Rankings yet? Or are you always checking your UMOO player rankings?If you’re not following either “sport” then you should, both are f.a.n.t.a.s.t.i.c(regarding umoo we maybe a bit biased)
UMOO is relatively new, but Beach volleyball started in Santa Monica, California in the 1920s, later it appeared in Europe & by the 1940s, doubles tournaments were being played on the beaches of Santa Monica for trophies. Now players are competing for that gold medal in the Olympics! The first professional tournament was held in France for 30,000 francs during the 1960’s. It was a prestigious sport, just like Trading.

We want to spotlight our Mini tournaments in relation to beach volley.Why? How?Well, it’s just 2 players per team in beach volleyball, and with our mini tournament, it’s just 2 to 10 players max, so both are pretty intimate games. You can play volley and a mini indoors or outdoors, barefoot too if you like ☺ but imagine if you did have internet access near a beach, you could play a mini on the sand, but 4sure it’s a little less energetic than playing volley in the sand.But then again by participating in a mini tournament, you’ve got a better chance to win and you can double, triple and even make 5 times your money!!Enough said, right?




Image Credits: http://www.flickr.com/photos/14269048@N08/2523830139/

When Water Ballet Meets Finance Entertainment

Big week for synchronized swimming at the Olympics. In honor of the great women of this (breath taking) sport we want to spotlight one of our tournaments: the double-up. Basically a Double Up tournament means there’s a 50% chance to win and double your money!

Synchronized swimming originated in the early 1900s in Canada, and almost exclusively performed by women. It requires great water skills and incredible strength, endurance, flexibility, grace, accurate timing, and excellent breath control. Similar to the ideal characteristics of a great stock market trader, right?Well, maybe minus the excellent breathing control… ☺


Synchronized swimming is a fusion of swimming, gymnastics, and dance, while UMOO’s fantasy stock trading is a fusion of trading, gaming and fun.

In the 2008 Beijing Olympics, there are 205 countries scheduled to compete and for each country many teams compete for all kinds of sports. To reach this momentous occasion in synchronized swimming, teams competed in qualifying tournaments in which the top three (3) teams automatically advanced to play @ the Olympic Games. So, in order for the team from Russia for example, to win and get to the Olympics, the only thing they need to accomplish is being one of the top three positions, which of the three has no significance.
This is very similar to how u can win in our double-up tournament. But with Double Up tournaments the odds are even more in your favor. The only thing U need to do is make sure your portfolio ranks above 50% of the players in the same tournament. So you’ve definitely got a great chance to win folks! If Anastasia Davydova (the defending Olympic and world championis) were a trader do you think she should grab more Microsoft or Apple stocks to win our Double Up tournament?





Image Credits: http://www.flickr.com/photos/24099238@N00/523248736/

We Know Your Gonna Like It Here

Helllooooo Internet. A new start-up, a new-blog.For early stage technology companies like ours the formula is usually: Creativity + Innovation + Entrepreneurship and …. viola! Here comes a good idea. { clearly, it’s a bit more complex then that ☺ }

But, Where do good ideas come from?Where do they live? Some reside in a garage, others at a college dorm room. In our case, our high-tech company is growing in the land-of-low-tech. We love our next door neighbors. The auto-repair shops, the small printing houses,the many eclectic production spaces. To kick things off in a bang (literally!) we and, our local community, wanted to welcome you to o.u.r space. WelcomeU the Umoo style. So, here we go, click on the clip below and,welcome to umoo.com.
We Know Your Gonna Like It Here