Wealth And Power : Jordan Belfort, Bernard Madoff, And The Enron Company

2868 Words Apr 29th, 2015 12 Pages
This paper will be concentrated on the stock market and a few different people that gained tremendous wealth and power from it. Jordan Belfort, Bernard Madoff, and the Enron Company are prime examples of people who had acquired both wealth and power all coming through the stock market, but not exactly legally through the entirety of their careers. In multiple cases, unfortunate events and choices that took place in their lives led to the loss of a tremendous amount of money for a lot of people, which eventually led to their downfall. To start the paper we will focus on the stock market and how it works. Companies have two ways that they can obtain money, it can either sell stock or borrow money. Equity financing is when a company sell …show more content…
It has no central location and trading is done through a computer. It used to be that the largest companies were listed only on the NYSE while all other second tier stocks traded on the other exchanges. It is now home to several big technology companies, which has resulted in becoming a serious competitor to the NYSE. American Stock Exchange (AMEX), is the third largest stock exchange, The AMEX used to be an alternative to the New York Stock Exchange, but that role has since been filled by the NASDAQ.If these didn 't exist the transactions of purchasing and selling stocks would be tremendously harder and take a lot more time to process. You can use a stockbroker, who will help you buy and sell stocks for a fee. It is safer to invest your money through a stockbroker, because they will have more knowledge on the stocks and which ones are safer to invest in for you based on your investment strategy. The Internet has revolutionized stock trading, giving anyone the ability to purchase and sell shares for a small fee per trade.

If you are the person who has purchased the stock, than you are a shareholder. Shareholders elect a board of directors to make the company 's major decisions, such as the number of shares to be issued to the public. The company can decide whether it wants to be private or public. If the company is private, than the shares are owned by a small group of people who buy and sell their shares amongst themselves. If the company is public, than

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