Watch These 10 Movies For Insights Into the World of Finance With a Dash of Entertainment
These movies can help you understand Wall Street and finance
The captivating world of finance can also turn out to be confusing for those who aren't well-versed in jargon and complex dealings. That's where films can break things down for audiences, by combining entertainment with profound insights into the enigmatic world of money and power. From iconic classics to gripping portrayals of real-life financial scandals, each movie unravels a unique facet of Wall Street and corporate corridors. Join us as we explore these cinematic masterpieces, delving into the motivations, machinations, and moral dilemmas that shape the lives of bankers, traders, and corporate titans.
"Wall Street" (1987): A must-watch finance film
Oliver Stone's timeless "Wall Street" lef with countless college graduates echoing the iconic phrase, "Blue Horseshoe loves Anacott Steel," on their way to Series 7 exams. Crafted originally to expose the excesses and hedonism intertwined with finance, "Wall Street" continues to exert a magnetic pull, attracting aspiring traders, brokers, analysts, and bankers, even three decades after its creation.
Although the movie serves as a cautionary tale about the perils of insider trading, it's hard to resist the allure of stepping into the shoes of characters like Bud Fox or the infamous Gordon Gekko, if only for a moment. As Gekko himself famously declared, "Greed is good."
"The Big Short" (2015): Unmasking the 2008 financial crash
Adapted from Michael Lewis's nonfiction book, "The Big Short: Inside the Doomsday Machine," this film tracks the journey of astute traders who were ahead of the curve and identified the housing crisis that triggered the 2007-2008 financial crash. What sets this movie apart is its clever approach to demystifying complex financial instruments. For instance, it enlists Selena Gomez to elucidate synthetic CDOs at a poker table and Margot Robbie to break down mortgage-backed bonds.
"Margin Call" (2011): Capturing the boardroom drama
Regarded as one of the most financially accurate films on this list, "Margin Call" unfolds within a tight 24-hour timeframe, offering a gripping glimpse into the life of a Wall Street firm teetering on the edge of catastrophe. The movie makes no effort to conceal its disdain for the reckless gambles undertaken by major banks in the lead-up to the 2008 financial crisis. It sheds light on the trading of intricate derivative instruments, which even the investment banks themselves struggled to fully comprehend. A poignant moment within the film features two central characters discussing the impending disaster that looms not just over their firm but also over the unsuspecting financial community of companies and investors at large. Amidst it all, a janitor stands among them, completely unaware of the impending turmoil.
"Boiler Room" (2000): A glimpse into financial deception
"Boiler Room" delves into the grim underbelly of the financial industry by shedding light on the pump-and-dump scheme. This term encapsulates the unethical practices of firms that artificially inflate the price of a security through deceptive, often false statements. Subsequently, they offload their holdings of the security, leaving unsuspecting investors with shares that have rapidly depreciated. Although "Boiler Room" is a work of fiction, the existence of pump-and-dump operations is all too real, along with the financial havoc they wreak on their victims. This finance film serves as a cautionary tale for budding investors, emphasizing the importance of sticking to transparent, reputable companies and basing investment decisions on solid fundamentals.
"The Wolf of Wall Street" (2013): A rollercoaster ride through an elaborate scam
Directed by Martin Scorsese, this biographical film unravels the captivating tale of Jordan Belfort, a notorious stock market swindler. The movie based on true events, features stellar performances by Leonardo DiCaprio and Jonah Hill. "The Wolf of Wall Street" delves into the sordid history of Stratton Oakmont, an over-the-counter brokerage firm infamous for its involvement in pump-and-dump schemes. These illicit activities played a role in catapulting the initial public offerings (IPOs) of several major public companies during the late 1980s and 1990s.
"Enron: The Smartest Guys in the Room" (2005): Breaking down corporate deceit
Despite unfolding over two decades ago, the documentary's narrative continues to astonish. Adapted from the best-selling book of the same name, it relies on an extensive trove of archival footage, congressional testimonies, and interviews with Enron executive Mike Muckleroy as well as whistle-blower Sherron Watkins. The film contends that Enron, far from being a reputable energy corporation gone astray, was essentially a long-running con game. Among its revelations, the documentary exposes how the California energy crisis of 2001 was a contrived scheme orchestrated by Enron traders who manipulated plant closures to inflate electricity prices, ultimately crippling the state's energy industry.
"Rogue Trader" (1999): Unveiling the collapse of Barings Bank
This film recounts the actual events surrounding Nick Leeson, a trader whose actions single-handedly drove Barings Bank, one of the world's oldest merchant banks, into insolvency. Once hailed as a rising star on the Singapore trading floor, Leeson's meteoric ascent followed an equally spectacular fall from grace. To conceal staggering losses, he ingeniously covered them up with undisclosed accounts. Ultimately, his ill-fated gamble, involving a short straddle position on the Nikkei, culminated in a catastrophic outcome. Beyond its entertainment value, the movie offers lessons in risk management and the importance of financial oversight.
"Glengarry Glen Ross" (1992): Into the cut-throat competition among salesmen
This cinematic adaptation of David Mamet's renowned play delves into the lives of a beleaguered team of real estate salesmen, their ethical values worn thin by years of toil for an unscrupulous company. The film exposes the shady tactics that are often employed by those selling financial products, emphasizing the unrelenting pressure applied by higher-ups to meet targets. While the ensemble cast delivered stellar performances, Alec Baldwin's electrifying motivational speech stole the spotlight, and shed light on both the best and worst facets of the financial industry.
American Psycho" (2000): Peering into the Dark Abyss of Finance
This provocative cinematic rendition of Bret Easton Ellis's acclaimed novel unfolds in the financial realm, with Christian Bale portraying a wealthy investment banker concealing a sinister and lethal identity. Though finance takes a backseat in the plot, "American Psycho" offers a glimpse into the surreal existence of the financial elite, revealing their profound detachment from the real world.
"Barbarians at the Gate" (1993): The LBO Spectacle
Centered on the leveraged buyout (LBO) of RJR Nabisco, this 1993 TV movie draws inspiration from Bryan Burrough and John Helyar's 1989 book of the same name. While the film takes some creative liberties, it exposes the shocking blend of incompetence and greed embodied by Nabisco's CEO F. Ross Johnson. Behind-the-scenes negotiations and skullduggery during this infamous LBO provide an eye-opening view of corporate maneuvring.