I can’t believe it’s been around since 1998 and I’m only just finding out about it, but thanks to an article by The Hollywood Reporter about Cantor Exchange and their imminent push into domestic box office receipts movie futures I discovered probably the most enjoyable thing in a very long time. The Hollywood Stock Exchange (HSX).
The basic concept is that you sign up (for free) and are awarded H$2 million which you use to buy stock in movies (through all phases of development), bonds for actors, derivatives, funds and which are all priced and adjust based on box office returns. Being very new at the process I’m a little hazy on how best to make money from actors, but with movies the process is quite straightforward. The price of stock in a movie is based on how much traders think the film will make over four weeks at the box office. For example, stock in Kick-Ass currently sells for H$124.32, which means the market thinks the film will earn $124.32 million dollars at the box office over four weeks. After the opening weekend the stock price is adjusted by the actual weekend receipts x 2.7. The 2.7 comes from the fact that a movie on average makes 2.7 times the opening weekend receipts over the course of four weeks. Therefore, if you bought the stock at a low price and it adjusts to a high price thanks to a strong opening weekend, when it delists after four weeks you’ll make a tidy profit.
It may sound a little complicated, and it is at first in getting used to the procedure and terms considering I have no idea when it comes to the stock market, but after a while it becomes insanely addictive. Just seeing my portfolio filled with positive growth is very satisfying. If there was an iPhone app for HSX I’d never get anything done again in my life.
Welcome to HSX! I have been playing a number of years and yes it is very addictive (glad you mentioned that to your readers!). My website (a HSX fansite) helps players better understand how the game works and some of the different strategies discovered over the years. You can also email me with any questions.