Stratton Oakmont Scandal: Stock Manipulation by Proxies

Stratton Oakmont Scandal: Stock Manipulation by Proxies

What was the Stratton Oakmont scandal? How did employees at Stratton Oakmont participate in stock manipulation? While there are many ways for investment firms to make money, the practice of choice for Stratton Oakmont was stock price manipulation. Jordan Belfort’s traders artificially inflated the stock price of a company during its Initial Public Offering (IPO) while holding on to more shares of that company than was allowed by SEC rules. Continue reading to learn more about Stratton Oakmont’s scandalous method of making money.

The Wolf of Wall Street Quotes: Getting Rich Through Crime

A young man reading a book with a view of a city.

What are the best The Wolf of Wall Street quotes? How did Jordan Belfort lead Stratton Oakmont to its success, and then its downfall? In The Wolf of Wall Street, Jordan Belfort explains how he enriched himself through illegal stock manipulation and how he hid his ill-gotten riches by laundering his money. He also details how he fostered a culture of hedonistic excess at his firm. Below is a collection of The Wolf of Wall Street quotes that summarize Belfort’s story.

Jordan Belfort: Money Laundering for Stratton Oakmont

A washing machine full of dollar bills as part of a money laundering scheme.

How does Stratton Oakmont rank as one of the most famous money laundering cases? How did Jordan Belfort launder money? Jordan Belfort’s money laundering scheme at Stratton Oakmont is infamous. To pull it off, Belfort used a Swiss bank account, took advantage of family members, created a fictitious corporation, and more. Here’s how Belfort used Stratton Oakmont to launder money.

Donald Trump’s Bankruptcy & How The Apprentice Saved Him

Donald Trump’s Bankruptcy & How The Apprentice Saved Him

What are the details of Donald Trump’s bankruptcy filings? How did he reestablish a positive public image after his financial decline? Donald Trump’s bankruptcy filings for his casinos followed a period of financial decline, overspending, and overpaying. To understand how Trump survived this and came back from it, you need to look at the events in more detail. Continue reading for details on Trump’s bankruptcy and how The Apprentice helped him revive his public image.

The Wolf of Wall Street by Jordan Belfort: Book Overview

An open book on a messy table.

What’s The Wolf of Wall Street by Jordan Belfort about? How did Belfort’s lifestyle cause him to lose his power? In The Wolf of Wall Street, Jordan Belfort explains how he grew his wealth through stock manipulation and money laundering and attempted to evade prosecution through his crimes. He also delves into his lifestyle of drug abuse and self-indulgence that almost killed him. Read below for a brief overview of The Wolf of Wall Street.

Mental Accounting in Behavioral Economics: 3 Examples

An example of mental accounting in behavioral economics as a man looks at charts in a conference room.

Why do people perform mental accounting when it comes to their finances? What are some examples of mental accounting? One of Richard H. Thaler’s arguments against constrained optimization is that people perform mental accounting. Behavioral economics describes this as a cognitive bias that causes people to place different values on money. We’ll focus on three key examples of mental accounting. Let’s take a look at three common examples of mental accounting.

Fairness in Economics: 2 Examples That Prove It Doesn’t Work

A person abiding by fairness in economics as they write on a paper with coins.

Should fairness be accounted for in economics? How does fairness conflict with budget optimization? Economist Richard H. Thaler argues that consumers are concerned with fairness and cooperation, even when these concerns get in the way of their budget. This is shown by two experiments: the ultimatum game and the prisoner’s dilemma. Discover why fairness in economics doesn’t always have a happy ending.

What Is the Law of One Price? How It Disputes the EMH

A man thinking about the law of one price with dollar signs as eyes.

What is the law of one price? How do closed-end funds violate the law of one price? According to economist Richard H. Thaler, one argument against the efficient market hypothesis is the violation of the law of one price. This is a thesis from traditional economics that a security should never sell at two different prices at the same time. Continue reading to learn more about why the law of one price isn’t consistent with the efficient market hypothesis.

Voluntary Poverty: Thoreau’s Simplicity in Action at Walden Pond

A log cabin by a lake in the woods.

What’s voluntary poverty? What was Henry David Thoreau’s attitude toward poverty and charity? Henry David Thoreau’s simplicity is a major theme of Walden. During the time he lived in the modest cabin in the woods, he practiced voluntary poverty—stripping down his life to the bare necessities to fit the lifestyle he chose. Continue reading to learn about Thoreau’s practice of voluntary poverty and a bit about his attitude toward people who lived in poverty.