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There's some confusion between us (cont.)

Posted by: BrendanD on Aug 17, 12:35 in response to RazorHawk's post There is a point to price adjustments... (aka How the HSX...

Thank you for trying to help me. I should have prefaced this by saying my experience is in real market trading. I recognize that individuals make a profit trading StarBonds. What I question is if StarBonds have any value (i.e. do they make money for everyone, like MovieStocks, or do they simply move money from one person to another?).

In 17th century Europe, history's first Speculative Bubble lead rational people to sell their houses to flip worthless flowers on exchanges (today known as "Tulip Mania"). Many became rich, but those that were left holding the tulips when the market relized they were useless lost everything.

The reason people buy stocks and bonds is because they make money. A stock pays out distributions from profits made during business operations, and a bond pays out interest/cashes out at par value (assuming there is no default). A bond or stock that makes no money is as good as a tulip.

Perhaps an example might help bridge the gap between us. If StarBonds, for instance, paid out 10% of a Star’s TAG in cash (directly added to the bondholders account) each time a movie’s boxoffice was totaled for that Star, there would be no need for artificial price adjustments. People would, naturally, bid/ask more for stocks that made more money.This is more similiar to how pricing works on Wallstreet.

Is there a Point to Price Adjustments? BrendanD Aug 16, 11:13

WOWZER - Major Misunderstanding of StarBonds. <INSiDE>. Captain Obvious Aug 16, 12:01

Thank you for trying to help another player, but your post is unhelpful... RazorHawk Aug 17, 05:38

Holy Mackerel. Captain Obvious Aug 17, 06:08

There is a point to price adjustments... (aka How the HSX game works) RazorHawk Aug 17, 07:10

Great stuff! {nm} Initech Aug 17, 07:53

There's some confusion between us (cont.) BrendanD Aug 17, 12:35

Here are some real examples.... RazorHawk Aug 17, 14:34

BrendanD, my suggestion is to forget real markets when playing HSX. (more inside) DTravel Aug 17, 17:57

Unless brain-warping illogical psychosis is the goal, you mean... Chateau_du_Mal_Voisin Aug 17, 18:33

How does it go again? "Been there, done that, have the straight-jacket."? DTravel Aug 18, 12:20

Although movies do "cash out" after 4 weeks, so we do have an influx there. THen there is the Dead movie delist and Bucketlist for SB's. {nm} Dorfman Aug 19, 11:22