Financial fraud under the market maker system

Felicia 2021-12-22 08:01:38

Many people did not understand the profit model of this film, which is actually quite normal. Because this film involves one of the important financial systems: the market business system. This system is a securities trading system in the United States. The official explanation is given below: The
MarketMaker Rule is a securities trading system that is different from the auction trading method, and is generally adopted by the over-the-counter market. A market maker refers to a securities business legal person with certain strength and reputation as a franchised dealer in the securities market, constantly reporting the buying and selling prices of certain specific securities to public investors, making two-way quotations and accepting public investment at that price. The buyer’s buying and selling requirements are to conduct securities transactions with investors with their own funds and securities. Market makers maintain market liquidity through this continuous buying and selling, and meet the investment needs of public investors. The market maker compensates for the cost of the service provided by the appropriate difference between the buying and selling price, and realizing a certain profit.
In fact, it is very complicated to say that, in simple terms, the US stocks are generally not allowed to be privately traded, except for assets. Strong qualified investors can directly trade on the secondary market. Others have to buy and sell through large securities companies. In other words, companies go public to wholesale stocks to brokers, and brokers then retail to individuals, and brokers earn price differences and service fees.
And this company manufactures a fictitious company producing financial products that contain a lot of moisture and sells them to investors for profit. In fact, there is no product at all, the empty glove white wolf, which may seem complicated, but in fact it is also a very simple scam.

View more about Boiler Room reviews

Extended Reading

Boiler Room quotes

  • Adam: [Exchanging money for poker chips] Give me four hundred

    Greg Weinstein: What about the betting?

    Seth Davis: What were you thinking?

    Greg Weinstein: I don't know, five hundred max?

    Seth Davis: We don't usually service that level of action but I hate to turn away a new customer the thing is we might not have enough cash to settle you at the end of the night.

    Greg Weinstein: That's ok you can just pay me tomorrow

    Seth Davis: How much you want?

    Greg Weinstein: [Tosses a roll of cash on the table] Five dimes

    Adam: You had to do it, make me look like I'm at the kiddie table

    Greg Weinstein: [to Adam] "The shoe fits,"kid

    Seth Davis: [to Greg] What denomination?

    Greg Weinstein: [to Seth] How about three Puerto Ricans, two chinks and a Guinea? I don't care, mix it up, whatever you want.

  • Seth Davis: [Narrating] I was living in Kew Gardens Hills running my "biz" giving the Queens College kids to do something in between classes I was doing well.

Related Articles