Bets on Gingrich rising in Iowa futures market
GOP presidential candidate and former U.S. House Speaker Newt Gingrich’s stock is up on the Iowa Electronic Markets, a real money futures market operated by the University of Iowa’s Tippie College of Business.
Gingrich has seen a spike in the price of his stock, which started out near $0 but is now nearing $.40. That means traders think Gingrich has a 40 percent chance of finishing in the top two in the Iowa Caucuses.
The Georgia politician has performed well at recent events in the Hawkeye State, garnering the most applause at the Republican Party of Iowa’s Reagan Dinner on Nov. 5 and an Oct. 22 forum held by the Iowa Faith and Freedom Coalition.
Meanwhile embattled Republican candidate Herman Cain has seen his stock fall to less than $.20 after a peak of nearly $.50 in October.
Also falling in recent weeks have been Texas Gov. Rick Perry, whose stock was trading near $.90 cents in early September but is now near $.40; and U.S. Rep. Michele Bachmann (R-Minn.), whose stock has fallen from above $.50 to below $.10 during that same period.
The price of stock for U.S. Rep. Ron Paul (R-Texas) has remained fairly steady. Other than a brief peak nearing $.40 in early September, he’s traded between $.10 and $.20 for several months.
Former Massachusetts Gov. Mitt Romney is leading the pack, with stock selling near $.75. His stock was trading near $.30 in early September.
Traders receive $1 if the candidate finishes with the first or second most votes in the Jan. 3 caucuses. All others will receive $0, and traders can invest up to $500 in the market.
Stock for the rest of the field – which encompasses several candidates – is trading well below $.10. That would pay off at $2, if none of the named candidates receive the first or second most votes.