Economic Aspects of the Wall Street (1987)


EconomicAspects of the WallStreet (1987)

EconomicAspects of the WallStreet (1987)

Themovie sets in 1985 and tells the story of Bud Fox, a juniorstockbroker with a strong desire to work for a man he truly admiresprofessionally at Jackson Steinem &amp Co in New York. The legendarystockbroker he admires is Gordon Gekko. Bud tries to book anappointment with the Wall Street stockbroker mogul for about twomonths without any success. One day he attends Gekko’s birthdayparty and presents the latter with his favorite packet of Cubancigars. Impressed by the bold gesture, Gekko grants him the interviewwhere Bud out of desperation to impress the former, gives him someinside information about an airline his father was working for. Budhad gathered the information through a casual conversation betweenhim and his father. Later on, Gekko gives Bud some capital and stocksto manage a task he performs dismally. This is until he is given asecond chance to spy on a British CEO Lawrence Wildman where helearns about the latter’s move to bid for a steel company. Throughthis move, Gekko makes a lot of money as Wildman is compelled to buyGekko’s share to make his takeover complete.

Withtime, Bud’s career thrives and he is promoted to a seniorstockbroker with a corner office that has a scenic view and gets asought-after girlfriend-Darien. Their successful streak goes on for awhile attracting the attention of the Securities and ExchangeCommission. Bud advises Gekko to buy Bluestar Airlines, a company hisfather was working for and make him the company’s president. Lateron, Bud learns that Gekko wanted to buy the company and sell off itsshares to cash in on the overly rated pension plan and risk all thecompany employees’ jobs. The imagination of hurting his fatherhelps him to devise a plan against Gekko and ends up saving thecompany by helping Wildman to buy the same. Later on, Bud is arrestedand works with the authority to bring down Gekko for a reducedsentence. The movie ends as Bud approaches the courtroom.

Theeconomic aspects of the film

Capitalas used in economics

Capitalrefers to non-financial resources or already-manufactured durablegoods utilized in the generation of services and goods. According toAgarwal and Gupta (2016), it is any product that can enable a personto perform an economically useful task. It can as well be money usedto buy a product with an aim of selling it again to realize a profit.The capital examples stated in the movie include financial capitalsince the movie is entirely about buying stock, the financial capitalis liquidated as trading money on Wall Street. The perceived profitsare dictated by the current market rather than the accumulated amount(Agarwal&amp Gupta, 2016).There is also a great deal of instructional capital as seen throughGordon Gekko’s tutelage of Bud on how to run the stocks on WallStreet. Human capital is also highly used as seen through Bud’stalent being used in the movie to enhance Gekko’s and Wildman’seconomic growth.

IPOfor expansion

Bygoing public, a company exposes to a larger pool of investors whohelp to generate capital for other projects and or expansion. This aswell may help the company to settle any outstanding debts and borrowsome more money for expansion. This can be done as shareholders tradetheir share in either piecemeal or large block to cash in on theirinvestment.

Commonand preferred stock

Preferredstock shows that in a corporation asset, an investor has a higherclaim and have their dividends paid off before the common stock,though they don’t necessarily have the voting right (Gabriel,2001).In an instance where a company must liquidate, the preferredstockholders must be paid first before the common stockholders arepaid out. Common stock does not offer regular dividends as theirdividends are determined by the board of management (Gabriel,2001).This is not the case with preferred stocks which are paid at regularintervals and have security.

Greedis right declaration

Thoughnot in the literal aspect, in the business aspect as presented byGekko during the Teldar Paper’s meeting, I agree to a larger extentthat greed can be good. This is in the sense that for one to succeedin business and have a breakthrough amid all the competition theremust be some serious driving force behind the success. Not just thesheer pleasure of doing business but the strong desire to make itbetter than the rest in terms of knowledge, money, performance andthis is what I believe Gekko meant by lack of better words. Thus, thedeclaration “greed is right.”


Themovie exemplifies the excesses of the 1980s Wall Street as Gekkodecrees that greed can be right. The movie depicts a sad story ofgreed for money and lifestyle within Wall Street that conflicts allmoral standings of the society. It criticizes the morality ofabsolute competitiveness with total disregard for existing ethics andrules. It also portrays the societal preference for power and money,over simple honesty and hard work. Altogether, the theme of hard workis not entirely disillusioned.


Agarwal, V.,&amp Gupta, V. (2016). An analysis of investor’s perception forthe investment in capital markets in India since globalizedperiod.&nbspImperialJournal of Interdisciplinary Research,&nbsp2(11).

Gabriel,S. J. (2001). Oliver Stone`s Wall Street and the market for corporatecontrol.&nbspEconomicsin Popular Film, Mount Holyoke,&nbsp21.