What is penny stocks wolf of Wall Street? It tells about the fraud occurred in 1987 by Jordan Belfort which released in 2013. Due to it includes the old movie, you might forget or never know the story. It implies you must recall or find out the movie and make it as the reference before choosing penny stocks. The movie reveals how does Jordan Belfort (Wolf of Wall Street) manage to sell fake stocks? It is certainly interesting to know to prevent fraud in your investment. So, let’s see!
Penny Stocks Wolf of Wall Street: 5 Facts about the Movie and Belfort
Up to now, the life of Belfort and his movie still invite controversy. However, Belfort has a good intention to lift his story into the movie. Roughly, what do you can take from penny stock trader Wolf Wall Street? Let’s find out through 5 following facts:
1. About the movie
The Wolf of Wall Street was a movie according to the true story with a similar name. It told about a big fraud by Jordan Belfort through his company namely Stratton Oakmont. The event occurred in 1987 but he sent to jail in 1996.
Jordan Belfort is the writer of the book where takes his life story. He wrote it when Belfort was in jail as his form of guilty toward his victims. Nowadays, Jordan Belfort changes better with establishing the real company and being a motivator.
3. Who is he?
Jordan Belfort is a fraud using big and penny stocks also run pump and dump trick. It is one of fraud trick where the trader buys the stock at a high price. The goal is to damage the stock price in the market. So, the investors also will buy it at a high price too because they do not any choice again. Afterward, the trader will sell all of the stocks to making the price down again. This action is surely disadvantaging other traders or investors.
4. Author of the movie and the actors
well, penny stocks selling wolf of Wall Street released on December 25, 2013, where Martin Scorsese was the author. Meanwhile, Leonardo DiCaprio played as Jordan Belfort. Paramount Pictures Company was the distributor of the movie
5. Get some disclaimer
It turns out the movie gets some criticisms from its critics and the audiences. They said that Jordan took much profit from his crime but the innocent victims did not get a commission. Some parties also had sued Paramount that distribute this movie.
Penny Stocks Wolf of Wall Street: Remain you about the Risks
Although Jordan did the fraud for all kinds of stocks, the story keeps referring to the penny stocks. The more targeted new investors who were trying to invest with small stocks and still lack of information. Penny stocks cast Wolf of Wall Street means the action of fraud using under a dollar stock on Wall Street. Wall Street is the name of a street in Manhattan, New York becoming the basic of NYSE. Meanwhile, NYSE (New York Stock Exchange) itself is one of the biggest stock markets
in the US.
It turns out penny stocks trading
Wolf of Wall Street indirectly explain about the danger or risk of small stocks. Primarily for penny stocks, it shows 4 notes of the risks such as below:
• Less safe to trade because between the traders and the investors rare to use the standard minimum.
• Penny stocks do not enroll the stocks to SEC or Stock Exchange Commission. It is because these small stocks trade in OTCBB or Over-The-Counter Bulletin Board. Most penny stocks trade in Pink Sheet
but some of them appear in NASDAQ and NYSE
. However, finding the stocks to those exchanges are such as counting the stars in the sky.
• Differ from big stocks
, penny stocks do not need current regulation.
• Not many investors in Penny stocks so that the liquidity of the stocks are less good.
Penny Stocks Wolf of Wall Street: Do you Afraid to Invest In?
Do not be afraid to invest in penny stocks
and take it easy. Penny stocks may have a lot of fraud but the big stocks are too. Therefore, think to overcome this problem while supposing it as a game. Now, you have to be able to acquire someone or a company as a fraud. You can do it through 6 tips to identify that they the fraud such as below:
1. Australian Finance Services
Beware when you meet a platform, person, or a company that does not have a license
. Meanwhile, having the license of Australian Finance Service is a must. Alongside that, do not believe when they say do not want your money.
2. Contact you often
Then, they contact you repeatedly both by phone, email, or other to join them.
3. Determine or loss
Usually, they want to get the victims as soon as possible so that they conduct several ways. One of them is by forcing you to make a decision fast or lose it. Even though, it just an ultimatum.
4. Claim as a professional broker or portfolio
Penny stocks Wolf of Wall Street told Jordan Belfort as the owner of a bonafide company. It implies he also claimed as a professional company where it is not right. Besides beware toward the fictive companies, avoid meeting the professional brokerages or portfolio manager without having AFS.
5. Claim famous names to catch credibility
The preparator of the fraud also often claim some popular names such as NASDAQ or Bloomberg. They do it to get the investor’s credibility.
6. Excessive promotion
Getting shining tips and information about penny stocks is what the investors need. They may promote it through websites, brochures, and emails that look so ensuring. Do not believe it directly but think again and research the truth.
Trading penny stocks
is not bad because it also promises fast profit behind its risk. As long as you know the strategy to buy
, your money will be fine. The most important thing is to use online brokers
such as Robinhood
, Fidelity, E-Trade, Ameritrade, or TradeStation. Look for detail information on the company that offers the stocks. Make sure that it has high volume and good market capitalization.
Just regard the story of penny stocks Wolf of Wall Street as the reference. Make it as your tips to invest safely forever. Good luck!