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Playing & Trading Strategy

Well...movie stocks are simply stocks you own...

Posted by: Flash on Mar 22, 19:03 in response to olmastr's post What's the difference between Movie Stocks and Derivatives?

A "derivative" is defined by HSX as:

A Hollywood Derivative is a short-term investment security based around a specific entertainment event, such as a film's opening weekend, award ceremonies, or TV shows. They take the form of either options or warrants.

So, a derivative is based around a movie's opening, a TV show, or something very specific for time frame.

A movie stock can be purchased and held for a LONG time...if you buy a movie stock "Star Wars 10" then you could actually hold that security for 5 years (as example).

The derivative will only be for a shorter, specific time....like a movies opening, or a TV show (American Idol, for example)


...Hope that helps.





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