New ideas, inventions, and products raise skepticism, especially when it comes to investing your time and money.
To help you understand how The Stock Market Of Music works, we've compiled five questions that you need to have answered.
So, let's dive into the world of The Stock Market Of Music and learn how it can help you invest in the future of music.
1. How Does Music Stock Work?
Music artists stock is created through an Initial Music Offering (IMO). Similar to an Initial Public Offering (IPO).
This allows artists to offer part ownership in their career and future earnings to investors who help fund their growth.
To determine the appropriate price for ownership in an artist's career, MariNation collects metadata and analyzes the artist's financial performance and social influence in the market.
This analysis is used to determine the value of the artist and the percentage of ownership you will receive in exchange for your investment.
2. Where Does The Money Come From?
The value of your shares are based on a combination of financial and influential capital in the music industry.
This is similar to how the traditional stock market works, where the value of a company's stock is influenced by a wide range of factors, including financial performance, market trends, news, scandals, and other relevant events.
In the music industry, the financial capital of an artist is determined by the royalties they generate from music.
This includes revenue from streaming services, radio play, and other sources.
The more successful an artist is in generating revenue from their music, the higher their financial capital is, and the more valuable their shares become.
In addition to financial capital, influential capital refers to the artist's social influence in the industry, which includes their popularity, fan base, social media following, and other relevant metrics.
The more influential an artist is in the industry, the higher their influential capital, and the more valuable their shares become.
Similar to the traditional stock market, the value of an artist's shares on MariNation can also be influenced by external factors such as market trends, news, scandals, and other relevant events.
For example, if an artist releases a highly successful album or receives critical acclaim for their work, their shares may increase in value.
On the other hand, if an artist faces negative publicity or a scandal, their shares may decrease in value.
3. What Am I Buying?
When you purchase music shares on MariNation, you are essentially buying a percentage ownership in the future earnings of the music artist.
The value of your shares can increase over time if the artist becomes more successful, and you can potentially make a profit by selling your shares to another investor on the MariNation platform.
It's important to note that the music artist's royalties are not collected directly from their bank account, just like the stock market doesn't collect money directly from a company's bank account.
Instead, the value of your music shares is based on the market influence and financial performance of the artist.
4. How Do I Make Money?
Your return on investment comes from the value of your shares increasing over time, and from the potential profit you can make when you decide to sell your shares on the platform.
If the artist becomes more successful and generates more revenue from their music, their shares will increase in value.
For example, if you bought shares in an artist's stock for $100 per share and sold them for $200 per share after a year, you would earn a 100% return on your investment.
To sell your shares and realize their value, you will need to find another investor who is willing to buy them from you on the MariNation platform.
Our technology matches buyers and sellers, so you can trade your music shares in a streamlined process.
5. What If No One Will Buy My Shares?
If you decide to sell your music shares, there's a chance they may not sell immediately.
We need to find another investor who is willing to buy them from you, and the timeline depends on the popularity and influence of the artist.
You can view this process in real time under "transaction history" in your account.
This information helps you make informed decisions about buying or selling shares in an artist's stock.
By combining financial and influential capital in the music industry, MariNation creates a new way for you to engage with the music industry and profit from the growth of music you enjoy.