All funds in this competition are "seeded" (initially funded) with $1 million in US currency from a pool of "accredited investors" managed by AFA staff. These investors will review your weekly performance reports and may either:
Subscriptions
Generally, savvy investors tend to seek out and invest more of their money into the best performing funds. Subcriptions also tend to increase with good news about a fund, and/or signs of an improving economy. Occasionally, new investors may arise as a result of random events such as winning the lottery, judgement in a lawsuit, or bequeath from a relative. In essence, your fund may have new subscriptions at any time. The investors in the funds participating in this competition may contact AFA staff at any time and request to "subscribe" for new or additional shares in your fund. In which case, AFA staff will contact your president and inform him/her of the subscribtion, which will be in increments of $10,000 as presribed in your fund's Prospectus.
The investor may request a Skype meeting with the fund's management team prior to finalizing his/her decision to invest additional dollars into your fund. If an investor requests such a meeting, AFA staff will coordinate with the fund's management team and the investor to arrange and facilitate the Skype meeting. All additional subscriptions will be documented and added to your fund's principal balance by AFA staff.
Redemptions
Contrary to subscriptions described above, savvy investors tend to avoid our pull out of investments in funds that have negative press and or poor performance. Often, investors will take legal action against a fund and its managers if they are found to have violated laws or the terms of their Prospectus. Redemptions may also arise as a result of random events which may force an investor to sell assets to generate cash as in the case of a medical emergency, the need for unexpected legal defense, or to help their children purchase their first home.
The investors in the funds participating in this competition may contact AFA staff at any time and request to "redeem" their shares in your fund. In which case, AFA staff will contact your president and inform him/her of the redemption, which for purposes of this competition will be limited to the amount of the investor's original investment.
The investor may request a Skype meeting with the fund's management team prior to finalizing his/her decision to redeem (withdraw) his/her money from your fund. If an investor requests such a meeting, AFA staff will coordinate with the fund's management team and the investor to arrange and facilitate the Skype meeting. All additional redemptions will be documented and subtracted to your fund's principal balance by AFA staff. |
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