What Can Be Traded
MovieStocks® represent films (both in the process of being made and that are currently in theaters) that are traded on the Movie Market™. MovieStocks come in five distinct stages: concept, development, production, wrap, and release, each representing its place on the path towards appearing in theaters.
The price of a MovieStock reflects how much money Traders think the film will make with each $1 million earned domestically equal to $1 Hollywood Dollar®. For example, if a MovieStock is priced at H$10, it means that traders expect the film to make $10 million in its first four weeks in wide release, or twelve weeks of limited release.
MovieStocks will be cashed out and removed from the Exchange four weeks after they have been in wide release, or twelve weeks of limited release. The price of the MovieStock will be adjusted to reflect its exact earnings and your portfolio will be credited the appropriate amount.
How would you like to own a piece of Denzel Washington? What about Megan Fox? Well, HSX makes dreams a reality by offering you a chance to purchase a piece of your favorite Hollywood commodity. A StarBond represents actors and directors traded on the Movie Market. The price of a StarBond reflects overall star power as determined by HSX Traders as well as how much money their films make at the box office as determined by their trailing average gross (TAG). Beginning with their second film, StarBond prices are adjusted to match the TAG when credited MovieStocks cash out. If a celebrity should happen to meet the end of his/her movie career, the StarBond is cashed out at TAG value.
Options are Hollywood Derivatives based around a specific event. For example, "call" and "put" options are released opening weekend of a particular MovieStock. Each option has a "strike price" that is set by HSX market makers.
Options come in two types: Puts and Calls. If you believe that a film will make more than its strike price during the opening weekend, you should consider purchasing a Call Option. If you think it's overrated, buy a Put. The amount you'll make on a Call is equal to the weekend box office minus the strike price, and strike price minus weekend box office on a Put.
A special managed group of securities. A fund is a security in which traders may invest and is subject to price shifts in the same way as other securities. Funds are managed by a fund manager and the value of the fund is set to H$1 for every H$1,000,000 net value of the portfolio the manager maintains.
TVStocks are Hollywood Derivatives based on television-related properties. These options may take the form of warrants with their own specific rules, based on the number of episodes released for new pilots or other criteria.
Warrants are the wildcard Hollywood Derivatives traded on Exchange. These special options could be released around any event not already covered by other options. These stocks may be released with their own specific rules.
When a new security is added to the Exchange, it is known as the initial public offering (IPO). For most of the first day a MovieStock or StarBond is traded, the price remains stable to give all Traders a chance to buy in early.
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