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:
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.
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