The stock market consists of a lot of people with different positions as an Investor is someone who commits capital in order to gain financial returns. A broker is a person who buys and sells goods or assets for others. A trader is a person who buys and sells the stock in the market. A corporate raider is an investor who buys a large number of shares in a corporation whose assets appear to be undervalued.
The stock market has a lot of terms that define small things that broker/traders need to know to work in the stock market as like derivatives which are contracts between two or more parties. Other small stuff come into play as in commodities which are marketable items produced to satisfy wants or needs of the people. Dividends are payments made by a corporation to its shareholder members which are basically the portion of corporate profits paid out to stockholders.
Now here are the big terms that people should be aware of to try to make it big as like Equity which is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. Golden Parachutes are agreements that are made between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated which put a lot of CEO’s in the jackpot and have them rich for a long while.
And finally, Liquidation which is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. This brings a lot of businesses down and suffers. Insider trading used all the time by brokers and traders to get ahead of the game and earn big bucks and live life. It’s a strategy that a lot of the brokers live by and use to make them successful as it’s the trading of a corporation's stock or other securities (such as bonds or stock options) by individuals with access to non-public information about the company.
It brings the inside scoop about businesses to brokers to give them a chance and advantage to invest and make a lot of money before News is released to the public. Fraud is an intentional deception made for personal gain or to damage another individual. The economy can be harmed by these types of strategies as Insider trading can be used for unfair advantage for investors as it helps them show what to invest before everyone else and BIG Bucks before anyone.
Fraud is harmful as it steals money away from people that are rightfully theirs and brings people into debt with the people stealing their money come out to become very wealthy and use their stolen money on special interests and personal gains when none of that money is earned by them. So insider trading helps investors cheat the game of the stock market and fraud helps investors steal the money that is rightfully own to the people which is basically stealing money from the economy of the U. S.
The SEC tries to prevent those things by for insider trading; they try to track down anyone they believe is to be involved as they obtain warrants for financial records and wiretaps, and find any other means to pursue the evidence that comes their way. If enough evidence is found to indict someone for insider trading, the individuals will be arrested and the case is handed over to a U. S. attorney. They do it because insider trading is unfair to the stock market game and the other investors and traders who are not involved in insider trading.
For fraud, the SEC tries to prevent that by first to help educate investors to protect themselves against fraud, second, they conduct regulatory examinations to ensure that firms have robust compliance systems to prevent and detect fraud and other violations, and finally, they aggressively prosecute securities fraud, working together with criminal prosecutors. They do this because they believe that businesses should deserve this horrible incident to happen to them financially and should protect themselves from cunning con artists out there in society. Finally, about the movie Wall Street (1987)…..
The movie “Wall street” was a really good and educational movie at some points as it was well-directed and helped showed the pros and cons of working in the stock market and how people entering that type of field should be fearless and aware of anything that is going on underground or in public and be picky on who to trust as there are a lot of “Gordon Gekko’s” in the world befriending many traders/brokers and stabbing them in the back at any moment based on their feelings/impression about them. Some key scenes in the movie were to be the “Greed is good” speech as it helped pictured an image what the U.
S. is truly is and where it will be with the economy. The scene which Bud fox found out the sale of Blue-Star was pretty dramatic as it helped Bud realize how cruel and Greedy Gordon Gekko was. And another key Scene was the confrontation between Gordon and Bud after Bud found out about the sale of Blue-Star. The Movie showed that stock market is hectic and scary and people should watched their step on which path they’re going to take as they could fall into a hole anytime with either having SEC involved with it or lose a ton of money and be sent on to the streets.
The stock market is a scary and hectic field to pursue a career in but if people have the brains, the charm and the look, through strategically planning and working, they can come out very successful and be at the top. But the market can always change people, physically, mentally and personality wise like once they go into the field it’s hard to get out and it sometimes changes them into a different person probably into a person with Greed to make more and more, probably a “Gordon Gekko”.