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Is there a Point to Price Adjustments?

Posted by: BrendanD on Aug 16, 11:13

Is there a point to price adjustments? If, for instance, a movie underperformed, wouldn't market makers simply set their sell/buy price to be less, therefor adjusting the price naturally?

Additionally, if price adjustments aren't productive, do StarBonds actually make any money? I don't deny that someone can trade a StarBond to earn a speculative profit from trading. However, if you have a security that is initially sold in an IPO for 20 dollars and cashes out at 100 dollars, any number of price adjustments in the interim will do nothing to change this progression.

This, combined with the fact that the amount of time between an actor/actress IPO and their cashout could be decades, leads me to believe that, overall, StarBonds are incredibly non-lucrative when compared with MovieStocks, which have far shorter maturities.





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