Hollywood Stock Exchange

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The Hollywood Stock Exchange, or HSX, is a web-based, multiplayer

Michael R. Burns, who were awarded a U.S. patent no. 5950176
in 1999 for the invention. Claims of this patent cover trading applications for trading virtual securities using virtual currencies over a network.

The company moved into the former Ritts Furniture building designed by Harry Harrison on Santa Monica Boulevard.

Operation

Because trading directly affects the prices of the securities – purchasing enough shares of a stock causes its price to rise, and selling causes its price to fall – and because the ultimate value of a moviestock is based on the film's box office, stock prices act as box office predictions. For example, if a particular moviestock trades at "H$40.00", the market is predicting that the movie will gross US$40 million at the box office in the first four weekends of wide release. In 2007, players in the Hollywood Stock Exchange correctly predicted 32 of the 39 major-category Oscar nominees and seven out of eight top-category winners. The Hollywood Stock Exchange is considered a good example of a prediction market.[2] Previous incarnations of the game included a music market (for purchasing musical artists), prizes for top gainers and, briefly, a "buyout" program in which HSX would reward top players by purchasing their portfolios at a price of US$1.00 per HS1 million if the player listed the portfolio for sale on eBay. These features have been discontinued. The practice of selling portfolios on eBay was inaugurated by Curtis Edmonds, a former Texan lawyer.[3]

HSX attracted some private investment during the

Century City, Los Angeles, California
.

Special warrants

During the holidays, there were "holiday warrants" that allowed one to predict the final gross of a movie by President's Day weekend of the following year. For example, there was a

Zathura
had a holiday warrant for H$70 million. Since Zathura closed a month after its release and made less than U$30 million, anyone who predicted that it would make more than US$70 million lost their investment. During the summer, there were similar "Blockbuster Warrants" that allowed one to predict the final gross of a movie by Labor Day weekend of that year. Currently, Blockbuster Warrants are issued throughout the year for those movies that will gross $100 Million or more through their first 12 weekends of release.

Every winter there are special warrants to predict the

Academy Award
winners.

There are special warrants for first year scripted TV shows based upon the number of episodes that will be shown by May 31, the end of the TV Season.

HSX also releases various special derivatives throughout the year. During the summer of 2006, there were derivatives for the

Survivor, American Idol and top categories of the Grammy Awards
.

See also

References

  1. ^ Rachael King (2006-08-07). "Hollywood Games People Play". businessweek.com. Archived from the original on October 20, 2007. Retrieved 2009-03-22.
  2. doi:10.1111/j.1540-5885.2011.00820.x
    .
  3. ^ The New York Times (February 1999). "Virtual Stocks Lure Real Money". Retrieved 2009-03-22.

External links

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