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Analysis is a thing which can not be matched of two persons because the thoughts of two persons can not be matched with each other (Gray, 2006). The God has awarded every person a different set of skills and mindset and according to the mindset, the person thinks and then applied his thinking on the analytical part (Gray, 2006). According to officials, writers and novelist, analyzing anything is more than difficult because it obtains different styles, mindsets, perceptions and thinking of people.
Inevitably, people adopt a rigorous approach to analyze a thing (Michael, 2008). There are numerous kinds of analysis like financial analysis, investment analysis, character analysis, book analysis and film analysis. This assignment is all about analyzing a movie. The movie which has been chosen for this paper is Wall Street. The main perspective of this study depends upon number of things. The first part of this report talks about Capital used in economics and how it has been defined in this movie.
The good already produced by an economy also called durable goods is called capital in economics (Michael, 2008). There are number of meanings of capital is available. Capital is anything which can be held as an asset like building, land and any other thing which can be depreciated. In finance, capital means the amount need by the organization to finance their operations. Organizations need sufficient amount of capital in order to finance their day to day operations.
In the movie (Wall-Street), the same meaning of capital has been highlighted. In the movie different organizations has been highlighted which are concerned with the amount of capital to finance their day to day operations. The next requirement of this part is to pen down the importance of “Initial Public Offering” and how organization can use this particular medium to expand their business. Initial Public Offering (IPO) usually used by newly established companies to get finance for their regular usage (Needless & Susan, 2007).
At the start of operation of any new public firm, organization goes to launch their shares for the general public. Goes for the IPO helps an organization to get capital to finance its operations. In return, organizations have to facilitate their shareholders with dividend and profit sharing. IPO has been initiated in the Primary market in which all the new public companies have to come and registered them to operate professionally and ethically. Shares are the part of a company distributed between different shareholders. Actually shareholders are the actual owner of an organization because they hold the maximum amount of risk with the going concern. In the movie, Wall-Street it is mentioned that at the time of bankruptcy, shareholders have the proper right to be compensated for their losses. There are different categorizes of shareholders like common shareholders, preferred shareholders and right shareholders. The name as well as the specification of each type of shareholders differs from each other. In the requirement of this paper, only common and preferred shareholders would be discussed. Common shareholders are the shareholders who hold common traded shares of an organization. Common means there is nothing embedded with it like preference and interchanging. Common shares holds maximum amount of risk because the shareholders will be compensated in last at the time of dilution of an organization. Common shares are cheaper and accordingly low income dividend shares as compared to other available shares of an organization. On the other hand, there is another type of shares, called preferred shares. As clear by the name preferred means the shares come at the first place or shareholders come at the 1st place. Preferred shares are comparatively expensive than the common shares because of its embedded option associated with its characteristics. Preferred Shares has the propensity to change in to common shares at any time and subject to receive the compensation at the time of dilution prior to any one else.
Preferred shareholders are more important for an organization as compared to common shareholders because they invest high amount of capital in the company’s operations. Usually high income individuals and corporations put their hands in the buying of preferred shares of a company. An organization issues both types of shares to collect the capital. Shareholders are very important from the standpoint of an organization and that is why organizations give the right to vote them accordingly. Preferred shareholders obviously have more rights to participate and suggest for the operations of the company. It should be a prior duty of the organization to invite all of their shareholders at the annual general meeting (AGM) to assess their level of satisfaction.
In the movie, (Wall-Street), a character with the name of Gordon Gecko expressed that “Greed is Good”. In this section, it is required to analyze this opinion from a standpoint of a layman. According to my opinion, this particular opinion of Gordon is not right as Greed is bad instead of good.
There is a bog difference between Greed and eagerness. Eagerness towards money is good but greediness is harmful and very bad. In the movie, it is emphasized that Greed is good that is why the movie became a sign of criticism from many economists and intelligent professionals. Overall the movie good and a person will learn a lot from the entire concept of the movie.