What will be the party strength (in percent) of the small parties in the Swiss House of Representatives election 2015?
Swiss House of Representatives election 2015 – small parties
This market is inactive. No predictions can currently be made.
House of Representatives election 2015 – small parties
Payout rules
Every share held by a trader in his/her portfolio at the end of the exchange will be paid out according to the actual result of this share after the election.
Explications to the market question
For dealing on the election stock market the value «party strength» has been defined as the expected value for the party stocks. The Federal Office of Statistics defines party strength as the «contingent of votes a party gained, in relation to the sum of all valid votes».
The party strength all over Switzerland in percent defined the issuing price of the four party stocks at the launch of the election stock market.
Party shares
The party shares were created by including the minority parties in the Swiss House of Representatives whose party strength at the parliamentary elections in 2011 for more than 2% or are currently represented in the House of Representatives with at least two elected members.
These include the parties represented in the House of Representatives:
Green Party of Switzerland (Greens)Conservative Democratic Party (CDP)
Liberal Green Party (LGP)
Protestant Party (EPP)
Additionally for this stock market the share «Difference»; difference to the market value 30.
Difference share
The «difference» share represents the difference between the sum of all of the shares on the market and the market value (total value of the respective market).
Prediction markets require a fixed total value in order to be able to buy and sell bundles of shares. Therefore, markets whose values are arbitrarily determined need an additional (artificial) share – the «difference» share.
In order to obtain a good prediction, the combined market value of the minority party shares is arbitrarily limited to 30 (=30%), instead of the normal 100 (= 100%). A supposition is made that the minority parties as a whole will not receive more than 30% of the votes. However, because the exact results for these minority parties are not known before the election, the artificial «difference» share is introduced into the party market. This share can be traded and allows the buying and selling of bundles.
Should the actual result of the parties represented on the market surprisingly exceed the market value (here 0), the «difference» share is set to 0 EX. All other shares will be distributed according to their actual results.