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A history lesson....Originally, prior to Oct 2001, there was a limit of 500 shares but the prices were huge (THANK was over 6K) . The whole

Posted by: Buy StarBondFund (EURO too) (a.k.a mrbinns) on Apr 06, 20:30 in response to twoshenoudas' post fair point, but I didn't mean infinite shares, but why...

StarBond system was revamped to what we have today.  The number of shares was 50K, and yes ports grew quickly.  My own port went from 35M to 100M that winter, thanks to HPOTT and LRDRN which both had lots of cheap StarBonds and big adjusts.  This was followed by similar action on STAR2 a few months later.

A year or so later, the share limit was lowered to 20K and the system has remained unchanged. (Personal note:  The day of the cut down, I became had excess cash and have never looked back)

50K was making too much in StarBonds and not enough in the core part of HSX....MOVIES!

Even with the changes last year, raising the MovieStock limit to 75K then 100K, the purpose is to get activity in MovieStocks, and not so much in StarBonds.  I do not expect a supersizing of StarBonds.

 

As to the 250 Cap, in 2001, we had just come out of the TITAN experience and it was felt that there would be too much of a swing for a 600M movie to be replaced by a limited (KWINS replaced TITAN with ENGMA which did 4M.....TITAN is still in the TAG FOR JCAME and will be replaced by AVAT3 if there are no changes to the schedule) and the cap limited the swing to about 50 points.  This rule will probably not change, so do not cry for me Argentina. 

Be happy that the StarBond market is as steady as it is.  Not hard to learn, there are H$ to be made so you can invest in MovieStocks.





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