Sunday, September 28, 2014

Over the Weekend: What Makes Us Tick

The film I watched this week was call “What Makes Us Tick” and was made in 1952. The video discussed how and why common stock is issued and how trading of common stock is carried out on the New York Stock Exchange. Although this video is so old, the information is still very relevant and can be used to teach young investors why they should invest and what happens behind the scenes.  The one element that this video cannot explain is the increased automation of the stock market. Ticker prices are now updated almost instantly as transactions occur so there is not the kind of lag explained in the video. Also, a broker isn’t even really needed nowadays to place a trade because it can be placed online. However, even without these elements this video still presents vital information about the elements of the stock market such as the SEC, dividends, the NYSE, and common stock.  In issuing common stock there is still investment bankers involved and the SEC is still the regulating body for the stock market. The most important item that can be learned from this video is that common stock is issued when a company would like to raise capital in order to expand or update equipment.


1 comment:

Unknown said...

It was interesting to watch how people interacted with stock market in 1950s. I wondered that this video implies 'age of affluence' because the main character seems to be very affluent, having enough money affordable to invest in stock market.