I still don't know how these guys make money.
by scamming peoplethey're sufficiently advanced versions of the Indians that try to get your grandma to buy Google Play cards
HOLY SHIT LE QUENTILLION DOLLAR DEAL?! ….Wait…don’t tell me?!LE BOOBILLION ZOLLAR GAGEAL?!!??!
>>217823192are you retarded? Mathew mcaughnahey's (or however the fuck you spell it) character explains it in simple coke head language.
>>217823192Pump and dump scam.Basically just tricking people into buying stock from them for more than its worth.
its made by jews to whitewash the crime of another jew. >haha leo acting as a playboy high on drug so funnithe real jordan belford was probably BIG into the moloch sacrificial stuffs thats why jews made this movie so whenever someone looked into the guy they can only find le funni movie
>>217823208>by scamming peopleYeah, but fucking how?
>>217823340You call up some 80 year old lady on the telephone and convince her that the stock you're selling is gonna double her money.Yes, it's really that dumb.
>>217823277
>>217823340Hey anon I've got a great investment opportunity that just came across my desk. This stock is hot and guaranteed to double - nay triple your investment.Can I get you to buy $100,000 worth of this stock? Don't worry about my high commission on the sale, this will easily be your retirement fund
>>217823400The fuck?!
>>217823192they trick you into giving them your money
It's called a pump and dump>1: Buy a cheap stock, sometimes for legit pennies per share>2: PUMP - inflate the value of the stock by convincing your clients it's a good investment>3: Stock price goes up>4: DUMP - you and your associates sell all shares at the inflated price>5: Stock price goes down because so many shares were sold>6: Anyone still holding the stock (your clients) gets screwed over
>>217823192They sell stocks and other assets to people, but they greatly over exaggerate the worth of said things people buyIt’s a grift
>>217823340Its called pumping and dumpingThe firm buys large amounts of a penny stock (ones that are like 1-10cents) and hypes them up to all their existing investors and potential new investors All this hype makes the price climb higher and higher, making more and more investors join in, then when it reaches a level, the firm sells their original holdings for huge gains (because the stocks were so low priced in the beginning market movements are usually in the 200-1000% range)
>>217823297I wonder if Belfort is in the Epstein Files.
>>217823747Belfort was on the low end of high financeEpstein was on the very high end - he dealt with advising billionaires. Usually only 2 or 3 at a time
>>217823773Was he actually good at building wealth for his clients?
>>217823743what you just described is actually called "touting"it's illegal and the SEC will gape your anus if they catch you doing it.
>>217823208these """people""" need to get the same treatment and stigma as jeets
>>217823790Yes, but not as a stock pickerHe used tax wizardy - usually by setting up untraceable off shore platforms where billionars could save tens of millions, even one client was rumoured to have tax-evaded 1 billion from his setups
>>217823830did you watch the second half of the movie?
>>217823846I see#justbillionairethingsI’m going to try putting my kids in a hedge fund whenever they’re around in a few years, hope I don’t face bad luck
>>217823830>touting is part of a pump and dump scheme
>>217823340Cold call people with decent incomes and offer them stocks in well known companies. Lots of people will think this is somehow a special offer and they'll open up an account and buy the shares in Coca Cola, Ford or Kodak that you're offering them. You wait a while until the shares have gone up in value and you call the investor again and tell them the great news. They get happy and maybe you sell them some more stocks. Each time you take 1% commission or something like that. Its all big companies listed on exchanges and the clients can often find the share prices in the papers. Broker sells 5K worth of stock and get like 50 dollars in commission, Do this +40 hours a week and build up a client base of dozens of people over the course of a year or so. Then when they trust you, you tell them>Look we've done really well on all these companies, but I've got an even better thing for you this time. Its a small startup that does custom steel brackets for the automobile industry, they're thinking of moving into aluminium to save weight. Its a very advanced metal but they can charge way more money. Their revenue is going to go up by hundreds of percent, shares are going to be amazing. We should sell all your shares in these big companies, and buy into this one. but the company is like two dudes working in a garage. Company isn't listed on any normal exchange. The company is selling shares because their business is failing and they need to drum up money to pay debts. But the client trusts the broker and sells 50K worth of shares and because of this kind of unusual stock, rather than 1% commission they can take 50% and they make thousands of dollars on the trade. You rake in cash by converting half the money your clients have put into and made in the stocks market over the year and putting it straight into your own pocket.
>>217823192They're scammers.Speculation, of which stocks is part, is gambling. You bet on how much money will a company make in a year so it divides the shares between owners, that's what make shares desireable. Next these guys turn shares into a commodity called stocks, where the attractiveness is to hold them until a newcomer wants to buy them, the buy low-sell high shit. These were penny stock traders, offering pieces of failing companies to retards who thought they would be revived, they never were and they took the money as a final sale.Final level has to do with selling companies to people who buy debt and so on, they use the debt they are owed as a sort of currency to sell it to other people who want to be owed debt.
>>217823874hedge funds have net worth requirementsjust put it in a S&P500 ETF. The market will always go up so you'll make decent returns over the long runOf course you can always spend time, and find the right biopharma company in its early stages They make ridiculous money in the US
>>217823869the only parts of this movie I've seen are clips of margo robbie spreading her legs, and of McMatt giving the rookie numbers jerk off quote.
>>217823926Yeah, I’m awareThat’s what makes me want to look into hedge funds. But I’ll keep the other stuff in mind, thanks Long term Bonds are also a thing I’m looking forward to researching too
>all the morons falling over themselves to describe pump and dumpBelfort was selling junk stocks (because of their high commission) that they knew to be worthless and insider trading with IPOs
>call up rich person>ask them for money, tell them you are a genius at investing and they'll make a ton back if they do>rinse and repeat
>>217823340This>>217823889Someone else pointed this out but Matthew McConaughey literally spelled this out to the audience pretty early on in the runtime
>>217823959he was pumping and dumping, i've read his book well before the movie came outand yes insider trading, but everybody does that
>>217823959I thought the whole point of an IPO *was* to pump and dump it.
>>217823973no, that is regular, legal trading. There are 1000s of firms and boiler rooms that do this, and its perfectly legal
>>217824069An IPO is to pump, but definitely not dumpFYI: i'm back after a while, wtf is with these captchas - 2 stars and 5 spikes. This is so time consuming. Usually i would be verified after one or two, but i'm getting asked each post
>>217824032Matthew McConaughey explains how normal brokerage is done, he lives entirely on those 1% commission trades and exclusive sells those big name companies like Coca Cola, Ford and Kodak. His clients all have huge amounts of money and buys large sums every time. He makes a phone call and collects like 500 dollars on a trade multiple times a day because his clients are all doctors, lawyers, CEOs, etc. Belfort then figures out how to get those kind of clients to agree to otherwise insane trades that allow the broker to take insane fees while selling the client literal trash. Nobody on Wall Street did that at the time and even Belfort never did because he never even had offices on Manhattan, never mind Wall Street. Its all done on Long Island or New Jersey or whatever.
>>217824074I thought it's fraud if you know the investment you're selling people is trash>>217824102Yeah but in the context of Belfort and co. the point is to pump and dump an IPO right?
>>217823192>I still don't know how these guys make money.Here's world-famous chef Anthony Bourdain to explain.
>>217823340>Yeah, but fucking how?It's just the 1980s version of crypto pump-and-dump. The movie glamorizes it, but the faggots were more or less just scamming the rich. In 20 years, there will probably be a bitcoin version of this movie.
The commission for blue chips was more than double that for penny stocks. He just needed to push them to a bunch of losers. People would buy, thinking they'd be rich, and Leo would get his commission.
Avoid any dude who says this is their favorite movie
