HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Movies that are opening each week....
will then "delist" after the 4th weekend of release... HSX will 'delist' these movies based on what the movies have earned at the box office. If a movie has earned $50 million at the box office in 4 weeks, the stock will delist at $50/share. There is no commission charged by HSX when they delist a stock.
The price of a movie that opens is subject to market forces up until the time HSX halts the stocks price on Saturday (refer to the Calendar for details). The price is then frozen until box office figures for the weekend are released sometime on Sunday... at which time HSX 'adjusts' the price of the stock based on its opening weekend numbers... Here's a basic example of how this works:
MOVIE's stock is priced currently at $20/share..it opens today.
HSX halts the price on Saturday at $20.
On Sunday, when box office estimates come out, we find that MOVIE earned $10M approximately $10M for the weekend.
HSX then adjusts the price of MOVIE's stock to $27 (2.7 x 10). Anyone owning MOVIE's stock at $20/share then earns $7 profit for each share they own.
MOVIE's stock price is then frozen until reset on Monday, at which time the stock is once again subject to market forces...
You can also "short" a stock that you feel will NOT earn it's price come opening weekend too... earning $$ if the movie tanks. You may want to refer to HSX's Glossary to learn more about how movie stocks adjust, halts, etc...
Quick Question by total noob Mar 11, 09:25
Movies that are opening each week.... Mar 11, 15:16
