How Did Bud Fox Invest In The Stock Market

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Question 1: Wall Street
1a) Bull Market: this is when share prices are increasing and influences investors to buy. They usually have green indicators or it’s a green arrow pointing up.
b) Bear Market: This is when the share prices are decreasing.
It’s the opposite of a Bull Market and this influences investors to sell. They usually have red indicators and it’s a red arrow pointing down.
c) Take-Over: When a company purchases another company, and takes control of it. There is something that we call hostile take-overs that Is usually done by corporate raiders. This is when a shareholder or an investor buys a lot of stock in the stock market to such an extent that he/she ends up owning the company.
d) Merger: When two companies come together
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-he had also given Gordon Gekko false information, deceived, lied and committed insider trading about Blue Stars Airlines with the aim of gaining Gekkos attention.
5) Insider trading occurs when an individual who has a position in a company shares private/confidential information about the company to an external source to make his own beneficial gains.
- In this movie, it is portrayed when Bud Fox fails at convincing Gordon Gekko about what stock he should invest in, in desperation Bud then shares insider information about Bluestar Airlines being cleared of responsibility by the Federal Aviation Authority in aims of getting his attention.
6) He shared information about Bluestar Airlines winning a court cases, and how it had gained control of new airplane routes.
7) Demand and Supply:
When there are more buyers in the market, that means that there is confidence in the market which will influence more securities, which then results in an increase in share price. If there are more sellers, there are less securities which will result in a decrease in share price.
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-he then convinces the staff from Jackson Steinem to influence their clients to invest in Bluestar, by doing this he leaks information about Gekkos takeover at Bluestar which results in the share price increasing.
- Gekko gets confronted by the union making him aware of the fact that they know his plan of liquidating and destroying the company with the aims of making it difficult for the customers as the company will be worthless.
- Gekko then decides to pull out of the company, but Bud also gets his well-known contacts to dump their Blue Star investments/stocks which then results in the company’s share price decreasing.
19) Bluestar was Buds fathers company and he knew most of Bluestar’s private information due to the relationship he had with his father. He then took advantage by manipulating the market which resulted in share prices decreasing, and Gekko losing his money.
20) Shareholders and Directors should have an annual meeting and discuss and agree the running of the company, discuss the issues of contract to come to an agreement that contracts should be reviewed by both shareholders and directors before they can commit and sign
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