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If you are wondering why the Spanish stocks used 1/8 fractions of a dollar. It was because the Spanish dollar coin could be divided into eight pieces, and each piece or 'bit' would have one eighth the value of a dollar, because it had one eighth of the metal value in the coin. It led to other colloquialisms like "pieces of eight" or "two bits" to refer to a quarter. Because other metal coin currencies in Europe, like the UK and France, were subject to debasement by the crown, and the Spanish dollar kept its silver content unaltered, it had the best reputation at the time that the American dollar was created. So the American dollar used the Spanish dollar as its model and kept some of the properties of the Spanish dollar.
What do you mean by "Spanish dollar"? I'm from Spain, and before the Euro, we used "pesetas" (have no idea if there's a translation lol) and each peseta could be divided by 100, so I'm not sure where the 8 pieces come into play, just curious. Didn't know NYSE was based off Spain's stock exchange, that one was a shocker to me hahaha
@@Madafaca6969 This was for the reales, which saw use from mid 1300s to 1868, when it was replaced by the peseta. 8 real = 1 silver coin (aka spanish dollar, aka peso, aka real de a ocho)
"The Spanish dollar kept its silver content unaltered". This is confusing. Didn't the inflow of silver from the New World cause debasement/rampant inflation (if those two things are different let me know) of the Spanish currency? And a quick Wikipedia search shows that: "The first ordinance officially devaluing the Spanish non-colonial real came out in 1642, with the real provincial debased from 67 to 83+3⁄4 to a mark of silver (hence, 10 reales to the dollar")". More edicts followed throughout the 17th and 18 century. I assume this means the silver content was altered multiple times. Did Spanish money really have a good reputation by the 1770s? Imperial Spain was toast by that point. The War for Spanish Succession ended in 1715; both France and Spain's powers were diminished and Britain had become the dominant force in Europe- what was wrong with following the British pound?
Don't forget archaeologists with Indiana Jones, diner waitresses with Terminator, temporal scientists with Back to the Future, and Stormtroopers with Star Wars
The Art of War was one of several Asian military strategy books that middle managers and investors of the 1980s loved to read and employ in the business and financial world.
@@maganashaker167 In Chapter 3: Sheathed Sword it says “supreme excellence consists in breaking the enemy's resistance without fighting” and a whole lot about knowing when to fight and when no to, it doesn’t really say anything about avoiding war altogether. Probably the most famous section of the book about knowing your enemy and yourself to be victorious is from that chapter. There also quite a large section dedicated to differentiate between military and government.
A book with brilliant insights like "hey, maybe fighting losing battles is a bad idea", and "knowing what your enemy is gonna do is a huge advantage", "taking stuff from your enemy is more valuable than shipping it to the front", and a lot of talk about how to use fire and what type of ground you should fight on
I don't know how things work in Canada (or I suppose the States for the movie) but at least in Britain the "Sir" goes with a first name. It would not be Sir Wildman but Sir Lawrence. Unless this was a "call me Sir, young man" Sir, rather than title. I haven't seen the movie.
This movie inspired me to begin my retail investing path to financial success. No inside trading, just reading magazines at the library and magiazines at the book store. Of course with the internet nowadays, information is available on line and investing is practically commission free. Great summation . Thank you.
I’m listening to this over and over bc I just like it … and bc I remember when the movie was a massive hit and I didn’t understand S from Shinola about the subject matter …
Great review, I remember my dad (an investment banker) watching this movie with me as a kid and making it clear that what they were doing was wrong. Looking forward to Trading Places!
Yep. I have a degree in finance and I work in the industry. As a kid I loved these movies until I better understood what was really going on. Its a shame our society celebrates criminal behavior.
@@MrSupernova111 Normal behavior isn't nearly as exciting as criminal behavior and is much harder to make a compelling film out of, especially if your target market is well... everybody.
@@MrSupernova111 The thing is that most people live ethical lives because criminal behavior comes with a very high risk and often isn't worth it. So when people go to the theatre and put themselves into the world of a film for a couple hours, they want an escape a lot of the time. Therefore I'd say it makes perfect sense that a lot of films are about criminal behavior.
Thanks so much Plain Bagel for explaining the bits & pieces of the movie. This movie is not only my favorite Oliver Stone film, but it also made me glad I'm a mere High School graduate.
I went to college and majored in finance because of this movie, I ultimately did graduate with a bachelor of finance but ended up not being a stock broker.
Ex - derivatives trader here, the plan to buy on the inside Anacote steel was brilliant, all hinged around the buy options trade @ $50, a kind of insurance in case the others don't jump on the deal as hard as he would have liked, then he'd still make somethin cause of the option
Thank you man. When it came to all the wallstreet talk i had no idea wtf was going on but got the overall theme of the evils of greed. But now i can actually understand the plot lol
@richard you know if you can do videos related to financial regulations and what types of laws are enforced on which roles in the financial industry? While it's nice that these videos give us insight about how these trading operations work but we never know how these rules are enforced.
FINRA and the SEC come to mind. Our industry is heavily regulated. The last investment firm that I worked for had me, at the time of hire, scan my fingerprints and check my financial and criminal background. On top of that, FINRA keeps records of all licensed professionals in the industry and any securities law violations on their site for the public to see.
Woah, for some reason RU-vid didn't let me know about this upload. I had to come to your channel to check why you hadn't uploaded in a while to find it.
IIRC using fractions makes for very quick calculations in your head, faster to a trained someone then using decimal system. Does not matte as much if you use computers over mentats.
Question: when Bud calls the newspaper (Blue Horseshoe) about Anacott Steel, the man who receives the phone call tells another man to "check the arbs." What does that mean?
My understanding is that they're checking the "arbitrage opportunities" around it. Arbitrage means generating a risk-free return by taking advantage of a market mispricing. A non-stock example would be buying eggs in a state where they're cheaper, and selling them in another state where eggs are more expensive. With stocks, most arbitrage occurs with derivative investments. So in the movie, they are likely seeing if derivative investments (i.e. call and put options) are currently under or over-valuing Bluestar to see if there's an opportunity to take advantage of the mispricing. A long-winded answer, but hopefully it helps explain it!
Have you ever heard "pieces of eight" mentioned in a pirate movie? Spanish (and later Mexican) silver dollars were the currency of much of the world including the colonial and early post colonial America before paper currencies were trusted. These silver dollars would be sliced in half and then again in quarters and then again in eighths. That was how money was subdivided when trading in the New York Stock Exchange was founded and the system remained in place long after the US introduced a decimalized currency.
Stone said he modelled Lou on his father who was a bastion of the Great Generation wiadom and virtue. Sadly, Gekko became the mentor for a lot of unwise morally empty idiots.
This yes is one of the best films aimed at the investment market because it is to be congratulated all the actors of weight are excellent loved this film recommendbecause it is 100% used I recommend filem very good.
In a sense, the illegal things that they do in the part of "other brokers" (9:02), wouldn't be similar as what /wallstreetbets did with the gamestop stock?
Why the Spanish did it like that is I think because their denominations were in "pieces of 8", and for much of early America before the federal reserve the currency was either Spanish currency or just whiskey. So maybe the NYSE is like that because it was in an 8th of whiskey lol.
0:32: 🎥 The Plain Bagel reviews the classic 1987 film Wall Street, starring Charlie Sheen and Michael Douglas as Gordon Gekko. 2:44: 💰 Money makes you do things you don't want to do, and Bud Fox has a bad day at work. 5:11: 💼 Gordon Gekko talks about wanting negative control over Teldar, explaining what a tender offer is and how it works. 7:47: 📈 Gordon Gekko instructs Bud Fox to buy call options on a stock before a given expiration date in order to make money. 10:37: 💰 Bud and Gekko engage in a full-blown criminal operation involving power of attorney, offshore accounts, and straw buyers to launder money and make profits with insider information. 13:06: 💰 Gekko plans to take over Blue Star Airlines and make a profit by paying off a loan and using the overfunded pension. 15:51: 💼 The movie 'Wall Street' ends with Bud going to jail for insider trading, but it's unclear if Gecko sold him out. Recap by Tammy AI
I was familiar with the old broker / market maker setup; Could you do a video on how it woks now , I roughly understand the order book matching but especially not where the money is made. Excellent video as always; 🙂
illegal unless your the one writing the rules. Anyways if hire a private investigator to get an edge on stocks is that considered insider trading? it seems that hiring a PI would be just your own information and your own investigation into the company. Like in the book stock operator the protagonist is investigating a rail road and notices that the president of the company is a tight dude which bolsters his impression the company is probably a good to buy even at the levels they are. I mean is that insider trading?
@@RideAcrossTheRiverthe difference is, Trump got fined. There is zero repurcussions for the others. And there never will be. The elite insiders regardless of which party they are in will continue raping the suckers.
Great video, but you repeatedly said Gordon lost money at the end, but in the film, when he sold his stock, he something like, "What the hell, so I only make 10 million". I think this is important because it says that a bad day for Gordon Gecko means only making 10 million. I wish you had addressed that part in the video.
Hello sir I am from India and ask to chat gpt for investment then she told me your channel i will want to invest 20000 r.s. per month for 20 year please suggest me what the way I will invest i am not decided thinking 2 years
Great review again. For an observation on Hollywood: trading (rather than investing) makes for exciting and controversial plots. Try and imagine a movie about boring long term investing? Movie goers want to believe in "get rich quick"? Show them in 90 minutes how to game the system and get your money for nothing and chicks for free? That sells tickets. Hollywood is greedy.
Lou Mannheim is the real hero and the role model in the movie haha, no more than 3 minutes on screen and he shared nothing but the real essence of investing wisely and ethicaly to Bud, Gordon Gekko is heck of a character but is the type of person we shouldn't aspire to be like
@@RideAcrossTheRiver It's never explicitly stated so we may never know. It could be Lou Mannheim, it could be Stone's late father Louis Stone who was a stock trader. It could also be someone else entirely..?
@@RideAcrossTheRiver But if one of your clients rings you up and tells you to buy or sell a certain stock you are ethically required to do it regardless of how you feel about it. And considering how much time had elapsed it's likely they were late to the party anyway so proving insider trading would be very difficult.
9:00 Isn't this what happened with GME? I assume the short squeeze happened as well, but I'm under the impression that the first week GME went huge was because traders were buying so many calls- which meant market makers would have to buy those hundred-block shares to hedge in case the call-buyer wanted to hold the underlying rather than just sell the contract (which I assume is what people usually do) aka a gamma squeeze. Crazy stuff, I might have to watch this movie.
Normal ppl watching this video: Yea that makes sense. Cool story. Financial academics watching this video: This is like a financial dragon ball Z fight!!
The Spanish Dollar used to be known as the piece of eight and was subdivided into eight pieces. But I didn't know the NYSE used to trade in fractions for that reason!
The director is Oliver Stone. His father was a Wall Street broker most of his adult life, the character Lou is partially based on him. Stone attributes the film's quality in portraying 'The Street' to the proximity he had via his father's career. Nice video, thank you!
Great breakdown of the movie! For those interested, I'd recommend (re)watching with the director's commentary enabled. Oliver Stone's (who even made a quick cameo in the movie, which was shown here) father was a stock broker by profession.The commentary and the backstory adds a lot to the experience of this movie.
The one thing about this film I found unbelievable was that a pension was overfunded by such a large amount that it would be possible to have it raided by the likes of Gekko. I guess I don't know what it was like in the 80s, and maybe things were different then and overfunded pensions were common, but I had always heard constantly about how underfunded most pensions were, and thought it was absurd that a company would let their pension fund get large enough to be the target of corporate raiders.
Yeah that is one of the issues of the pension system is it made the company look attractive to buy out and strip it of assets. Movie is pretty realistic in that regard. I think the reason today the pension system is "underfunded" is because compared to the 80s people live a lot longer and I think they started to realize that the "overfunded" wasn't actually overfunded.
You are right that pension funds being underfunded is not at all uncommon plus I have never heard of an overfunded pension plan. I have received two buyout offers for my accrued pension by former employers who wanted to get the pension liability off of their balance sheets. Both buyouts were very attractive offers so I took them and put the money in my IRA and invested the proceeds which are still there growing today. I will have to take my first RMD in 2026.
From continuously engaging myself with The Diary Of A CEO clips and the guild a Financial Guru Joseph Sullivan Anderson I feel when it comes to investments and the investment markets, everything boils down to having proper risk management & a system that is tested & proven, then opportunities become endless. Each to their own though & if you're profiting from the strategies you find on RU-vid videos that's also great!
A steadfast commitment to reputable companies requires either holding steady during market downturns or increasing investments during such times. This strategy is based on the fundamental belief that well-managed enterprises will eventually rebound with renewed strength. On the other hand, investors seeking long-term profits through stock appreciation should seek guidance from a FA to identify opportune entry and exit points. My own experience during the pandemic highlights the value of working with an investment advisor, which resulted in a significant gain of $630k in just 8 months.
They are truly experts in their field; I had the pleasure of working with one, and it proved to be extremely beneficial as they assisted me in restructuring my entire portfolio. My FA is none other than Joseph Sullivan Anderson, a well-known figure in his field who you may know.
Art of war is a great book good break down. As a teenager I watched Wall Street and didn’t get it. Then I watched it again 2 years ago and understood it. Same with margin call
You should probably do a video on realistic expectations of real estate investing. I think by now most of your audience has a firm grasp on obvious guru's selling courses, but I don't see many on realistic real estate ROI's, risk x reward of trying to get rich, and going over the different ways real estate investing makes you money but through a realistic view.
Looking back considering I saw the movie when it came out, the concept of "you are either inside or you are out" is probably a key element for those successful in finance. Of course there are accountants, advisors where their dayjob is doing that. For everyone else with stock investments, I think it is a wildcard. But then there are some that make a lot of money which I see as two types. One, those that were given shares for a startup, the startup becomes successful and goes public. They sell their shares and make lots of money. The others are ones that have friends who don't tell them specifics but recommend to buy stocks with these companies and not others. What happens is those shares increase in value as if like in the movie "everyone thinks we pulled a rabbit out of a hat."
Great summary of one of my all time favorite movies! At the risk of being “that guy”, there’s one mistake in the summary. Bud Fox doesn’t buy Teldar Paper after meeting Gekko and learning Gekko is making a play for the company. He does look it up on his terminal at J.S., but he doesn’t buy it (“It’s a dog with fleas”). He confirms this at lunch with Gekko (“No Mr. Gekko, that would have been illegal”). Bottom line, Bud hadn’t “crossed over” yet. That’s the beauty of this movie! There’s a strong “moral” theme driven by the three “fathers” in Bud Fox’s life during the film (his actual father, Lou and Gekko). As Bud grows more influenced and corrupt by Gekko, he can still feel his father and Lou starring right through his heavy-hitter image and he struggles with his ethics at certain points. Anyway, one small technical killjoy comment to an otherwise great summary. Thank you for producing this! I agree with others that Trading Places would be an awesome summary (and confirm it was a short sell play by Louis and Billy-Ray). 🤑 And as for “Wall Street - Money Never Sleeps”……let’s just let that one sleep, and go on with life like that sequel never happened. 😣
I agree that “Wall Street Money Never Sleeps” was not a good movie - at all! I think part of the problem was that the original “Wall Street” was such a great movie that it would be hard for a sequel to come even remotely close to it. I saw “Money Never Sleeps” on the day it opened in the theaters because I loved “Wall Street” so much. I was majorly disappointed.
Sun Tzu is ovverated. I can think of msny military battles that changed from one side to another and sometimes back. Just look at the Battle of Kharkiv in WW2. Guys like Gecko are impressed because they think they are at war, while simultaneously creating "nothing".
Insider information is how professionals make money otherwise everyone with a stock account would be millionaires in a year. They all have industry contacts and connections.
