Trading Decisions:
How the process works
Student managers make recommendations to the Foundation to buy or sell a security. The Foundation may authorize a supervising faculty member or dean’s representative to implement trades per the student manager recommendations.
The MSU Foundation remains the formal manager of the account Should the need arise, the MSU Foundation, as the legal manager of the SIF, has the right to override student recommendations or take independent action at any time.
Majority rule
During Fall and Spring semesters while class is in session, all decisions to recommend purchase or sale of a security require a simple majority vote of the students in the class. Majority rule serves to limit speculative positions and excessive trading in the portfolio.
Faculty role
While faculty may suggest particular market sectors that look promising for research, faculty do not have a vote nor have veto power over buy and sell decisions.
Individual students are not authorized to implement trades for the fund. The MSU Foundation’s representative, who may be either the executive director of the Foundation or supervising faculty member, is in charge of implementing trades.