HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Contd...delist after ther first 4 weekends of release. It doesn't matter what the current selling price of the MovieStock is, it will only
be worth the acutal box office sales, in millions, as reported by ERC on the Monday (or Tuesday of holiday weekends) of the 4th weekend.
To make the price of the MovieStock close to the estimated delist price, it is "adjusted" on the Sunday (Monday for holidays) by a formula which is posted in the calendar. While they would eventually reach close to that level due to market forces, the adjust makes it happen instantly. It IS the heart, and soul, of HSX.
Why is the factor 2.7? (Not 2.8) Based on historical data, the factor helps project a MovieStock price close to the average delist price. It is not perfect. Some movies will outperform the 2.7 (ie. TED) while others will come up short. There are comments about "multipliers" on the board which are obtained by dividing delist price by opening weekend. (Example ROAGE 36.97/14.44 actual yeilds 2.56; TMBOY 36.10/13.45 ...2.69) Smaller multipliers mean that the value of the stock falls short of the adjust. Larger multipliers mean that the value of the stock increased after the adjust.
Note: the factor has not always been 2.7....it was 2.9 11 years ago and had an intermediary stop at 2.8 The lower factors reflect the reality of "front loading" where movies have much bigger opening nights/weekends and sales tail off sharply.
Can any kind soul tell me what is the whole box office *2.8 about? {nm} Jul 16, 00:08
The central part of HSX is that wide release movies {nm} Jul 16, 05:25
Contd...delist after ther first 4 weekends of release. It doesn't matter what the current selling price of the MovieStock is, it will only Jul 16, 05:44
I have a stupid, follow-up question Jul 16, 11:08
no commision on delists {nm} Jul 16, 12:19
