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Jul 21Doug Smith

Buzzword of the Week: The Harry Potter Stock Index

Jul 21Doug Smith

Given that the latest movie in the Harry Potter franchise just came out, I had a hard time resisting this one from the Investopedia dictionary of buzzwords.

The Harry Potter Stock Index is a collection of stocks from companies related to the “Harry Potter” series franchise. Created by StockPickr, this index seeks to capture some of Harry Potter’s success by investing in selected movie producers, merchandisers and advertisers currently associated with the franchise.

The success of the Harry Potter franchise has snowballed since the first of many Harry Potter books, Harry Potter and the Sorcerer’s Stone, by J. K. Rowling, was first published in 1997. With the addition of movies, toys, games and other accessories, Harry Potter has created an industry generating billions of dollars in sales. With each new book edition or movie release, StockPickr believes investors can benefit by investing in companies involved with Harry Potter branded items.

The Harry Potter Stock Index includes such firms as Scholastic (Nasdaq:SCHL), who publishes the Harry Potter books, and Time Warner (NYSE:TWX), the series movie producer. Even Amazon (Nasdaq:AMZN) is included, where Potter books are best sellers. Hasbro (NYSE:HAS), Motorola (NYSE:MOT), Electronic Arts (Nasdaq:ERTS) and Coca Cola (NYSE:KO) are a few other related companies included in the index.

Stock portfolios and financial terms that are tied to celebrities tend to have a short shelf life, depending on how long the buzz lasts. For example, consider the Bo Derek Stock Index, which was most popular in the early 1980s, after the movie 10 first came out.

 

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