HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
HSX sells a security that are based on "big" movies that open during summer and other times (Christmas, etc.)...
These securities are based on what the projected DELIST price will be for big 'blockbuster' movies - such as Ironman 2, Twilight, etc.
These securities are 'special' and not offered all the time, and are securities not covered by other options as well.
For EXAMPLE: HSX may release a security called MOVBW - which might stand for "Movie Blockbuster Warrant, and this may be priced at, say $50. Then the "rule" might be MOVBW must earn at least $200M at the box office by a certain date (usually all summer long if it's a summer blockbuster warrant). IF the movie earns $300M by say, September when it cashes out, then since you paid $50 for the Warrant, and it EARNED MORE than $250M at the box office, then you earned $50 for every share you hold ($300 minus $200M minimum needed + $50 you paid for a share).
Blockbuster warrants are simply a way to bet that a movie will earn MORE than what the warrant specifies by the date it cashes out. Usually HSX has "summer" blockbuster warrants based on the 'big' movies opening in the summer season... the disadvantage for players with smaller ports is that they must wait till the warrants cash out (usually a few months minimum in the summer time) before they cash out and you get your $$.
Blockbuster warrants may be priced all over the board, based on HSX projections on how they feel how well the movie will do before they cash out.
Summer Blockbuster Warrants Apr 19, 12:29
cant wait to find out myself, best part for me is the warrants. {nm} Apr 19, 12:36
from what I've seen, usually the day before the first "summer" movie...so the day before Iron Man 2 opens. {nm} Apr 19, 16:14
what do you mean by warrants..?? (sorry.. i am a newbie here) {nm} Apr 20, 00:54
HSX sells a security that are based on "big" movies that open during summer and other times (Christmas, etc.)... Apr 20, 07:24
Hey, thanks for adding the additional info....as usual, you are there to clean up most of my messes... :-) {nm} Apr 20, 15:05
