HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
short for arbitrage. for our purposes, it means a stocks box office is greater than its stock price (basically, stock is undervalued)
i.e easy money
example if Movie A has made $10M in box office, but the stock is only at $9, the stock is ARB. Since we know that the stock eventually cashes out at its box office total, we know for sure that we will make that $1 profit, so ARB's are awesome
also, there is BRA where a film cant possibly make its stock price (like, Movie A, a limited release in its 11th week is just about out of theaters, having made $10M in box office but is priced at $15 a share, well then it has no realistic shot to make its price, then its BRA (posting BRA's though is genreally frowned upon, because theres no true guarantee, the way there is with an ARB situation)
so if you see an ARB, buy
or BRA, short
But be careful to pay attention for commission, and also by the time you see a stock said to be ARB it may no longer be so
A little help please. What does ARB mean on the boards? {nm} Apr 04, 12:45
ARB = ARBITRAGE = The Box Office is Higher than the Security Price. Apr 04, 13:06
short for arbitrage. for our purposes, it means a stocks box office is greater than its stock price (basically, stock is undervalued) Apr 04, 13:38
