HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Oh, I see. Yes, the moviestock will delist at the actual box office earned after twelve weekends (for a limited release)
So using the example you give, the moviestock would delist at $12.35 (plus whatever extra box office it makes between now and delist), and if you buy at $9 a share, you would make at least $3.35 profit per share (less commission)
This guaranteed profit situation - where a moviestock is priced under its current box office - is often referred to on the boards as "arb", short for arbitrage.
How does the final gross of a movie affect delist price? {nm} Apr 01, 11:32
How do you mean? For wide releases at least, usually grosses aren't final until well after the moviestock has delisted. Apr 01, 11:42
Limited releases that are about to delist. Apr 01, 13:26
Oh, I see. Yes, the moviestock will delist at the actual box office earned after twelve weekends (for a limited release) Apr 01, 13:41
