HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Not quite - a star only adjusts for a movie once - when it has just been delisted
Any other movement is just normal trades affecting the price.
So, in the situation you describe, the price would be driven down by traders noticing what the adjust is going to be, so it is still worth getting in on the action early.
3 thinks stop it working as you describe:
1. If the film made $400Million, only $250Million counts towards the star bond value, so it would be difficult to apportion
2. Films continue to make money after delisting - if their total is less than $250Million, then their contibution the next time the bond adjusts will increase
3. HSX is more interested in gathering data about how we predict films will do and so don't want to spend a lot of time making star bonds complicated
How is a star's value calculated? Oct 30, 04:19
Yes Oct 30, 05:04
Glossary (at the bottom of the page) is handy to explain the wrinkles Oct 30, 06:24
Thanks further question about star's value.. So does a stars value get replace week for week if a star has more than 5 films Nov 01, 20:31
Not quite - a star only adjusts for a movie once - when it has just been delisted Nov 02, 02:07
Thanks. Forgot about the $250 million value cap. Nov 02, 07:09