What is the Hollywood Stock Exchange (HSX)?
At the Hollywood Stock Exchange (HSX), “investors” anticipate the success of numerous entertainment business components online. The best use is movie stocks, star bonds, celeb stocks, TV stocks, movie funds, and derivatives.
Opening an account, making successful transactions, and taking quizzes earn players “Hollywood dollars,” which they use to trade. Ticker-like symbols represent each “investment”: The emblem for the movie Iron Man 3 is IRNM3.
Understanding the Hollywood Stock Exchange
Hollywood Stock Exchange co-founders Max Keiser and Michael R. Burns designed virtual specialist technology for the game. Cantor Fitzgerald, a brokerage business, owns the exchange, which has operated since 1996. In 2010, they developed the Cantor Exchange, its counterpart to the HSX.
A music market (for buying musical artists), prizes for top gainers, and a “buyout” program in which the Hollywood Stock Exchange would buy top players’ portfolios at $1 per $1 million of exchange currency if they listed them on eBay were previous features of the game. Discontinued features. Former Texas lawyer Curtis Edmonds started selling portfolios on eBay.
The Hollywood Stock Exchange raised private money during the dot-com boom and advertised on cable channels to recruit investors. After the Dotcom disaster, Cantor Fitzgerald units bought the exchange. Cantor Fitzgerald uses movie stock pricing to help its UK gambling operations, where gamblers may bet on U.S. film gross.
New players earn H$2,000,000 in virtual Hollywood Dollars to start playing the Hollywood Stock Exchange.
Hollywood Stock Exchange and Prediction Markets
The Hollywood Stock Exchange is a game-based prediction market. Prediction markets exchange event outcomes. Market prices usually reflect the “crowd’s” prediction of an occurrence. Prediction market contracts trade 0%–100%. This binary option has an expiration price of 0% or 100%. Prediction markets fall under crowdsourcing, which aims to gather knowledge on specific areas of interest.
Accurate prediction markets exist for many topics. Like Iowa Electronic Markets, some exchange real money. Election prediction markets are common now. The website fivethirtyeight.com analyzes election outcomes and other events to inform prediction markets.
HSX Pros and Cons
Trading in Moviestocks and Starbonds predicts a film’s first four weeks of wide-release box office. Depending on investor volume, the HSX should be easy to control. However, unlike normal shares, Christmas and summer blockbuster “warrants” have predetermined pricing. These are valuable if the box office surpasses the face value and useless otherwise.
Pros
- Low entry barriers
- Market data helps forecast movie success and failure before opening.
Cons
- Small marketplaces are simple to control.
- Prices are very susceptible to casting announcements
Example of HSX
If you believe Al Pacino, gaining popularity due to the re-release of the Godfather flicks, has several fantastic films remaining, you may wish to capitalize on that—trade Hollywood dollars for an Al Pacino StarBond at a specific price. If the world has seen enough of Pacino, you might sell his StarBond short and benefit from the price decline.
You sell your long position or buy back your short position when the market moves sufficiently in your favor to make you pleased with your purchase. The extra Hollywood dollars you receive are your profit.
The Verdict
You may enjoy forecasting film and actor success on the Hollywood Stock Exchange. Joining gives you two million Hollywood dollars to trade freely. Winning deals lead to Hollywood dollars and moguldom.
Hollywood Stock Exchange FAQs
Trading on the HSX: How?
After creating an account, you may trade movies and stars in the Movie Market. StarBonds denotes stars, whereas MovieStocks exchanges movies. You can trade long or short in Hollywood dollars. Open your account and get two million Hollywood dollars.
Are there HSX IPOs?
Yes. An initial public offering (IPO) is when HSX adds a star or movie. The first day of trading for an IPO on MovieStock or StarBond is usually at the same price.
Trade: Can I lose Hollywood dollars?
Yes. You lose money if you sell a MovieStock or StarBond that drops in value. The riskiest method to lose is to short or sell MovieStock or StarBond because you think their value will fall. The bond or stock’s value will compound your paper loss until you sell the deal or it expires. If you sort a movie stock at H$10 and it sells for H$100, you lose H$90.
Conclusion
- HSX is an entertainment “stock market” where users may trade Hollywood Dollar® virtual shares of celebrities and movies.
- Share prices fluctuate with film or celebrity success. A box office hit may drive prices up, while a flop can drive them down.
- Founded in 1996, New York City brokerage Cantor Fitzgerald bought HSX in 2010.
- Its headquarters are in Los Angeles.
