Hollywood Stock Exchange

The Hollywood Stock Exchange is a web-based, multiplayer game in which players virtually buy and sell shares of actors, directors, upcoming films, and film-related options. The technology that drives the Hollywood Stock Exchange is the Virtual Specialist technology invented by HSX co-founder and the exchange's creator Max Keiser who was awarded a U.S. patent no. (5960176) in 1996 for his invention. Claims of this patent cover trading applications for trading virtual securities using virtual currencies over a network. Because trading directly affects the prices of the securities, and because the ultimate value of a moviestock is based on the film's box office, stock prices act as box office predictions. In 2002, players in the Hollywood Stock Exchange correctly predicted 35 of the 40 major-category Oscar nominees. It is considered a good example of a prediction market. Previous incarnations of the game included a music market (for purchasing artists) and prizes for top gainers. These features have been discontinued. HSX is now a subsidiary of Cantor Index Holdings, L.P. and an affiliate of Cantor Index Limited, a leading online financial spread trading firm. HSX is headquartered in Century City, California.

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