Imagine a virtual stock market, one where gamers traded imaginary
stocks created by users. This would be a massively multiplayer online
role-playing game. What features, ideas and concepts would you like to
see with this game?

You might be interested in these sites:

http://www.fantasystockmarket.com

http://www.virtualstockexchange.com

What is good or bad about these. Imagine a more real world exchange,
what features, functions, ideas would you like to see?

I don't know diddly about the stock market, so I can't comment on the
features of these sites. Just posted the links in case they might be
of some use.

I would like to have real-time quotes. Or delayed by 20 minutes max.
Most of the virtual games are processing the transactions at the end
of the day (when market close). So day trading could not an option.

Be able to experiment day-trading. 

I would like to win a certain price if I am well ranked. 

I would like to see a list of other portfolio and their ranking. The
portfolio content (should be visible by other user), to be able to
check what kind of trade have been performed on those portfolio.

I would like to be able to trade stock options (puts and calls).

Be able to subscribe to daily, weekly, montly competitions.

I would like to view a certain hall of fame of the people that has
been wining week after week (be able to view their portfolio and
trades).

Hi! I already play two to three virtual stock exchange games, both the
original game at marketwatch.com and the new beta version and
sometimes some others. I can't really think of many things that are
wrong with their concept. It's very customisable which I like a lot
and you can trade not only shares but also mutual funds and on 2 or 3
markets. I think it would be a great base of starting point if you are
creating such a game. It is also free and does not require much
personal info. to get signed up and the research opportunities
completes the whole package. If you do make such a game, rest assured,
I will be there very quickly! Best of Luck!

To make it realistic you need to include how bad / good news,
analysts? forecasts, rumours and sentiment affect the stock markets.

A realistic stock market game would be much more complicated than you
have imagined (or I think that you would have already nixed the
idea...).

Stock prices are determined the same way as anything else: supply vs.
demand. Creating supply (of imaginary stocks) is relatively easy. How
will you create demand?

I am guessing that you came up with this idea from current MMORPGs.
With games like Warcraft, items have certain properties that make them
desireable. A weapon may have great range, armor may be very light and
strong, etc. This creates demand for that item.

With all stocks (real and imaginary), the demand is created by the
anticipation that the stock will increase in value. With real stocks,
the anticipation is based on a combination of factors both micro
(value of company-produced products/services, earnings, etc.) and
macro (wars, interest rates, etc.). How will you recreate these
effects?

For example, let's say that someone creates stock XYZ. Is it created
out of thin air? If so, why would I want to buy it? If not, what is
it's value based on?

Macro effects can be even more complicated. For example, if the
economy is doing very well, then that is good, right? So the stock
market should go up? Well, if the economy grows too fast, the
inflation picks ups. To prevent inflation, the Federal Reserve raises
the interest rates. If companies have to pay higher interest rates,
then their profit margins go down. Profits go down, so do the stocks.
It's a balancing act. Plus, if you read enough financial news, you
will notice that even the "experts" can't agree.

I think it would be nifty if you made it like the real stock market
where what others trade affects it so the stocks would not be affected
by real life prices but how people who are playing the game trade
them.

i am currently playing his virtual game based on teams participating
at this years soccer world cup.teams prices vary based on their
abilities and their popularities and they move based on normal demand
and supply.of course people would watch out for the games these teams
play and buy or sell based on their results.to start with,you are
given 10000 pounds to start with and dividends are paid every
tuesday.you also have the chance to win bonuses based on results of
specific games.the site is www.bbc.co.uk/worldcupdaq and by the way
its a day trading site.