**Wall Street Discussion Paper**
The Wall Street film gives a great and clear depiction on how capitalistic trading mentality can benefit or hinder an individual. There are many changes that occur in our markets today and they can be so hard to keep up with and even sometimes maintain. The film helps us viewers focus and begin to tie the interactions and choices of those innovators in the financial market and how that can affect, benefit, and or stifle entrepreneurs in our society.
Within the film, a deal goes down that many viewers would conclude to be unethical, which leaves Bud to become rich and begins to reap the benefits. We can tie that to innovators in our society today. Entrepreneurial ethics help to develop relationships that are built on mutual trust and respect. When there is not any trust that is shared between the entrepreneur and the consumer in the market the overall venture will not prevail. This correlation in the film and our society can utterly stifle them and create lasting aggravations. Successful business empires that utilize strong ethical behaviors that will gain credibility that results in consumer alliance because of their sound ethical entrepreneurial practices.
Now stated directly from the SEC governmental website; “SEC investigations are generally conducted on a confidential basis to maximize their effectiveness and protect the privacy of those involved. Because SEC investigations are generally nonpublic, Enforcement will not confirm or deny the existence of an investigation unless the SEC brings charges against a person or entity involved. Enforcement also will not provide updates on the status of any pending SEC investigation.” As he goes on to engage in illicit trading activities and makes a lot of money for Gordon Gekko and himself. In the dark, Bud is blind to realize that he is being put on the hotlist by the Security and Exchange Community. Also to give perspective on how those illicit interactions within the film that Bud had can affect entrepreneurs today and really show the consequential impact that this entity has. Security and Exchange Community states, “SEC investigations are civil, not criminal. The Security and Exchange Community can charge individuals and entities for violating the federal securities laws and seek remedies such as monetary penalties, disgorgement of ill-gotten gains, injunctions, and restrictions on an individual’s ability to work in the securities industry or to serve as an officer or director of a public company, but the SEC cannot put people in jail. Enforcement may refer potential criminal cases to criminal law enforcement authorities for investigation or coordinate SEC investigations with criminal investigations involving the same conduct. If a person is convicted of a criminal violation of the securities laws, a court may sentence that person to serve time in jail.” This is another valid reason that our innovators in our society today must operate in total integrity.
While there is immense pressure and being on the chopping block Bud pitches a plan to Gordon Gekko, which is to expand the Bluestar Airlines after purchasing it. Bud does all in his power to push the deal through. We can also give this take on this situation that there may be a sense of greed and utter control, and many entering innovators fall into this trap. The trap is getting resources in any way we can regardless of how they are obtained, as long as they are. To prevent this unethical scheme from beginning, as we could all agree, was to completely liquidate all the assets once the stock peaks which would lead to the company to fall into death valley for lack of a better term. Gupta also views the remaining scene of Bud, “being racked with the guilt of leading all the employees into unemployment, Bud plans to manipulate the stock. He also arranges for a secret meeting with Lawrence Wildman and convinces him to buy a controlling stake in Bluestar Airlines with a significant discount.” We see here that this scene clearly depicts how an entrepreneur can be stifled by their current environment and how their current culture that they present in can affect others around them, which begins to drive them away from pursuing market value opportunities and responsibilities.
On the execution day, Gordon Gekko, realizing that his stocks are plummeting, as mentioned before, is rid of his remaining stake in the company on Bud’s advice, which results in many losses. But soon, Gekko finds out about the plot set up by Bud Fox and Wildman to deceive him. Where many innovators today need to be skeptical about, you must trust your team and specifically be aware of those wolves dressed in sheeps clothing. To avenge his financial losses Gekko informs the SEC about the insider trading and unethical practices of Bud Fox to make his intentional illicit gains. However, things didn't go as planned. There is a great statement written by Akshit Gupta (ESSEC Business School, Master in Management, 2022) where he presents clearly how, “The movie correlates with the concept of market efficiency where it shows that the market functions as a semi-strong efficient market at best. Since private inside information is not embedded in the market price of the stock, there is a possibility to make gains higher than the market gains by bringing it into use. It also shows how demand and supply play a fundamental role in any financial market, driving the prices in either direction. Moreover, it establishes the importance of a buyer, a seller and a common trading platform for a transaction to occur.” I love this brief thought process that he had because it holds true to what is clearly and evidently presented throughout the film.
The overall end of the movie does show adequately in portraying how illicit and unethical behavior is dealt with in present-day markets. How those interactions affect our society, consumers, entrepreneurs, and the market. If our entrepreneurs can succinctly figure out the importance of this we can begin to move in a direction where their efforts will be recognized and valuable. Along with Gupta stating that, “ It also shows how effective measures have been put in place by governments throughout the world to provide traders with a transparent and efficient financial market.”
Works Cited
Gupta, Akshit. “Analysis of the Wall Street Movie.” SimTrade Blog, 24 Aug. 2022, https://www.simtrade.fr/blog_simtrade/analysis-wall-street-movie/.
“Investor Alerts and Bulletins.” SEC Emblem, 22 Oct. 2014, https://www.sec.gov/oiea/investor-alerts-bulletins/ib_investigations.