Stock Price
The current market value of one share of a team, determined by championship probability.
A stock price is the current cost to purchase one share of a particular team. In a sports stock market, prices are primarily driven by championship probability rather than supply and demand. As a team's chances of winning the championship change, their stock price adjusts accordingly. Prices can range from less than 1 SC for heavy underdogs to over 50 SC for strong favorites.
On Sporty Stocks
Stock prices on Sporty Stocks are calculated using the formula: Price = Championship Probability x 100 SC x 0.95. This means a team with a 50% championship probability would be priced at 47.50 SC. The 0.95 multiplier represents the house edge, similar to how real markets have transaction costs.
Example
The Oklahoma City Thunder have a 25% chance to win the basketball championship. Their stock price would be 0.25 x 100 SC x 0.95 = 23.75 SC per share. If an injury to a key player drops their probability to 18%, the price adjusts to 0.18 x 100 SC x 0.95 = 17.10 SC.
Questions
Why do stock prices change?
Stock prices change because championship probabilities change. When a team wins games, makes trades, or gets healthy players back, their odds improve and price rises. Losses and injuries cause prices to drop.
What is the highest a stock price can go?
The maximum theoretical price is 95 SC (100% championship probability). In practice, even strong favorites rarely exceed 50-60 SC because there is always uncertainty in sports.
