Mr. Development

high hopes… big dreams…spiritualist

Wallstreet- The Movie

Written By: bikash - Feb• 04•12

WallStreet

Loved the movie. It contains bit of drama on financial domain.. and kind of relating to GFC we recently faced.

It also got me some real world idea on how the financial world work! As we have always thought, production and service sectors are the industries of much use to human kind… one produces stuffs for consumers while the other facilitates proper use of products/facilities by the consumers.

Establishing any such organization is a huge thing.. it requires highly competent people and huge capital in most cases. Hence, investment has always been a very important parameter in the success of any business. In our modern world, there is a huge sector now that facilitates the acquiring and distributing money (finances) – we often call them Investment Houses (Investment Banks as bigger players and small financing institutions).

So, for any business, there will be entrepreneurs- who have the vision and skill to bring the business to fruition and there are investors – who believe in the business model, entrepreneurs and the market for financing the establishment and growth. Investment Houses may act as an investor or facilitate the acquiring of the finance.

Entrepreneurs need money to establish and run the business until it starts making profit while Investors need assurance that the money they are investing pays off! These two are wired together by Investment Houses.

Shares, Bonds, Debentures have been tradition method of collecting finances from the market by the Investment Houses.

“Is Greed Good?” This is the main question raised by the movie.. and certainly we have seen the consequences during GFC!!!

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