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What Can Be traded
MovieStocks®
MovieStocks® represent films (both in the process of being made and that are currently in theaters) that are traded on the Movie Market™. The price of a MovieStock reflects how much money traders think the film will make domestically in its first four weeks at the box office. This gives you the chance to play your predictions on new movies. For example, if a MovieStock is priced at H$80, it means that traders expect the film to make $80 million in its first four weeks in release. Once the opening weekend box office is totaled, a MovieStock will adjust in price to reflect the actual box-office gross, versus what was expected. MovieStocks come in five distinct stages: concept, development, production, wrap, and release. MovieStocks will be cashed out and removed from the Exchange four weeks after they have been in wide release. If you own a MovieStock that is worth 250,000 Hollywood Dollars® at the time it cashes out, your portfolio will be credited that same amount in cash.
StarBonds®
How would you like to own a piece of Harrison Ford? What about Drew Barrymore? Well, HSX makes dreams a reality by offering you a chance to purchase a piece of your favorite Hollywood commodity. A StarBond represents actors and directors traded on the Movie Market. The price of a StarBond reflects overall star power as determined by HSX traders, as well as how much money their films make at the box office as determined by their trailing average gross (TAG). Beginning with their second film, StarBond prices are adjusted to match the TAG when credited MovieStocks cash out. If a celebrity should happen to meet the end of his/her career (death, retirement, etc.), the StarBond is cashed out at TAG value.
Options
Options are Hollywood Derivatives based around a specific event. For example, "call" and "put" options are released opening weekend of a particular MovieStock. Each option has a "strike price" that is set according to what the market expects the film to gross in its opening weekend. The value of an option is determined by the supply and demand of the market. Trading is halted on the respective film's opening weekend. Options are cashed out on the Monday following the opening weekend at a price equal to the opening weekend box-office gross (in millions) minus the strike price. Thus, for a call option to be worth more than you paid for it, the film must gross more than the strike price PLUS the price you paid for the option. If the film makes less money than the strike price, call options cash out at H$0. For a put option to be worth more than you paid for it, the film must gross less than the strike price MINUS the price you paid for the option. If the film makes more money than the strike price, put options cash out at H$0.
Funds
A special managed group of securities. A fund is a security in which traders may invest and is subject to price shifts in the same way as other securities. Funds are managed by a fund manager and the value of the fund is set to H$1 for every H$1,000,000 net value of the portfolio the manager maintains.
TVStocks®
TVStocks are Hollywood Derivatives based on television-related properties. These options may take the form of warrants with their own specific rules.
Warrants
Warrants are the wildcard Hollywood Derivatives traded on Exchange. These special options could be released around any event not already covered by other options. These stocks may be released with their own specific rules.
IPO (Initial Public Offering)
When a brand-spanking new security is added to the Exchange, it is known as the initial public offering (IPO). For the first day a MovieStock or StarBond is traded, the price usually remains the same.
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