HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Yes but In that point I will say it will depend in your port size rather than the 100K, the new delist "tax" will affect that.
For example..... your port is huge so you should have the cash available to do anything you want or at least more freedom than people with smaller ports.
Imagine high priced Iron Man 4 & 5 or Harry Potter 10 & 12 IPO you probably use your cash reserve for that and pay your 1% commission for getting into the action, people with smaller port will pay 2 % (selling/covering for releasing money & the same that you for getting into the action). The fact that there is 100K just will mean that the total amount that you will pay for comission is higher than 50K limit (2 times) or 75 K (1.33 times) since your investment is larger but it does not affect anything else. The delist tax however move things...Like always maxing in openers is one of quickest way to make money but looks what happens to the movement needed to break even, it goes up with the new tax rather than with the 100k (see table).
In cases like the example blockbuster it will mean that the stock is worthless to adquire much earlier hence undervalue its price, the market will not correct it (additinal players buying at last minute for smaller but sure gains) since there is no profit to be taken from it. That should hurt data.
In my case since my port is smaller than you I am always out of cash so I am limited by it and people with smaller ports than me more. The more value the stock has, the least I tried to cash out earlier than free delist because I see it as loosing profit (some exeptions apply), also this practice will assure me that I will have some cash early in the week for the week IPos and other investment that otherwise I will have to pay an additional 1% (release cash) to get in.
If I had a huge cash reserve I still will not cash early because I see it as loosing money with or without the delist tax but if you remove the free delist then everyone will be loosing that money for investment and force people (cash limited only) to release early since there is no longer any kind incentive to hold until the end. Under that situation daytrading will be the norm as previously mentioned.
| Shares | Price | Investment | buy/ cover 1% | sell/ short 1% | total Best Case | ||
| 75,000 | 300 | $22,500,000 | 225,000.00 | 225,000.00 | 450,000.00 | ||
| 100,000 | 300 | $30,000,000 | 300,000.00 | 300,000.00 | 600,000.00 | ||
| Movement | 75K points | 100 K points | Total Smaller Ports | ||||
| 1 | 75000 | 100000 | 675,000.00 | ||||
| 2 | 150000 | 200000 | 900,000.00 | ||||
| 3 | 225000 | 300000 | Break Even Now | ||||
| 4 | 300000 | 400000 | |||||
| 5 | 375000 | 500000 | |||||
| 6 | 450000 | 600000 | Break Even Later | Smaller Port Break Even Now | |||
| 7 | 525000 | 700000 | |||||
| 8 | 600000 | 800000 | |||||
| 9 | 675000 | 900000 | Smaller Port Break Even Later | ||||
In my initial reaction below, I forgot that funds "delist" and charging a commission for them on the way out is ridiculous. Dec 21, 10:11
The Bucket List ...STVs ...Dead Delists ...RIPs? Dec 21, 12:17
Where was it announced that RIP Starbond delists are at current price? I thought they delisted at TAG. {nm} Dec 22, 00:06
They lost that Saturday trading business by getting rid of comm-free. {nm} Dec 21, 18:18
But you are using that cash to buy something else for the 3rd trade. {nm} Dec 21, 12:50
(and I sometimes forget that perspective) {nm} Dec 21, 13:10
Assuming something good is there because if most oportunities are close to (maturity + comission) then is better to keep it . Dec 21, 13:31
delist should be commission free and hsx should reduce commission % overall. this would be an incentive to trade. {nm} Dec 21, 13:11
We want you to be making choices and the resulting smarter trades. {nm} Dec 21, 13:16
You are forcing traders to be daytraders. You are tunelling everybody into doing the same thing. Dec 21, 13:45
No, you don't have to necessarily be smart or good to follow movement of stocks on a ticker. {nm} Dec 21, 18:17
Obiously I don't mean that. Dec 21, 20:00
Yes but In that point I will say it will depend in your port size rather than the 100K, the new delist "tax" will affect that. Dec 22, 06:20
I agree with that completely and am all for it. {nm} May 16, 22:50
I think they should bring back the cold cash option {nm} May 16, 22:52
I really can't see how implementing a delist commission this will result in smarter trades, Dec 21, 13:59
Example 2 ( Do nothing) seems off but you got the idea, stocks close to maturity price become less profitable. {nm} Dec 21, 14:24
Yeah, you are correct... after delist, you end up with a gain of only 0.5% (instead of 1.5% as of now). {nm} Dec 21, 14:55
I do agree on that Dec 21, 20:25