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The Importance Of The Stock Market

explanatory Essay
2323 words
2323 words
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Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used to daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down. While the stock market keeps the world turning and the economy steady, the stock market is also being used in manipulative ways that are not always legal. What is the stock market? Businesses share part of the company by selling stock, or shares of ownership. When investors own shares of a company, that company is considered public because the general public has an ownership stake in that company. At the high ranks of the companies are the board of directors, whose job it is to make sure the business’s managers are working in the best interests of the multiple owners and shareholders. Companies sell shares so they can expand their businesses and make them better, such as by building manufacturing plants, buying other companies, and developing new and improved products to keep their business profitable. America’s railroads, steel manufacturers, car companies, and telephone companies all started with the help of money from opening up their business to the Stock Market. The Stock Market started in the 1920’s. People who were smart enough to buy them back then could build up a fortune since the market was growing so rapidly. One wh... ... middle of paper ... ...as up to, but he didn’t. he stayed at Stratton-Oakmont and continued his old ways, he learned that he was being investigated again and tried to hide all of his money in Swiss bank accounts but the banker he was doing business with got caught in America for sexual assault and turned Belfort in to get away with it. Belfort was exploited and arrested; he went “undercover” to incriminate his friends and other brokers to get less jail time. Belfort was sentenced to 2 years in a minimum security prison, which was more like a country club, and ordered to pay back 150 million dollars to the people and companies that Stratton-Oakmont had stolen money from. Belfort was released from prison and now speaks at investment seminars to help pay back the restitution of 150 million that he owes. If he does not pay it back in the next ten years, he will be ordered back to jail.

In this essay, the author

  • Explains that the stock market is a risky business and it can make or break people's lives. it is being used to cheat people out of money for personal gain.
  • Explains the stock market and how investors own shares of a company.
  • Describes how the stock market crash of 1929 was the springboard to the great depression.
  • Analyzes how the stock market has been used to manipulate aspects like national security and social media. in 2012, a russian hacker gained control of an official russian government twitter account.
  • Explains that analysts are working on ways that twitter and other social media websites can be used in predicting stock points and how they fluctuate.
  • Explains that super computers are hard at work, trading stocks faster than the speed of light. speed traders have little to no personal interests in the thousands of companies they are constantly buying and selling shares from.
  • Explains that there are now more than 80 different electronic stock exchanges and 2 new electronic methods to make trading faster than ever before.
  • Explains that speed trading is not yet illegal, but there are several types of extensive stock market scams that have ousted people billions of dollars.
  • Explains that bernie madoff ran the most effective ponzi scheme to date and no one had any idea until it all collapsed.
  • Explains that madoff was technologically challenged and had trouble with the simplest computer tasks. he was charged with 47 counts of fraud and sentenced to 150 years in a minimum security prison without parole.
  • Explains that jordan belfort and his firm stratton-oakmont were the masters of the pump and dump scheme.
  • Narrates how belfort left stratton-oakmont and hid all of his evidence before the sec and fbi knew what he was up to. he went undercover to incriminate his friends and other brokers to get less jail time.
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