Boiler Room - Ethical Issue

In: Film and Music

Submitted By papanicolaceline
Words 1143
Pages 5
Rebeca Sánchez
November 10, 2014.
Boiler Room
Boiler Room can be define as: “ a place where high-pressure salesperson use banks of telephones to call list of potential investors (known as “sicker list”) in order to peddle speculative, even fraudulent, securities”. Is called a boiler room because of the high-pressure selling. The movie centers on the life of a young man named Seth Davis, who lived in New York. He had decided to drop off from the university and run an underground casino, which was visit largely by local college students. A friend of him, that worked for an investment brokerage firm named JT Marlin, offers him a position in the firm. Seth, to gain his father’s respect decided to join the firm as a broker. The firm is portrayed as promising, were you can be able to be a millionaire in less than three years, only if you are greedy enough. At first, Seth was amazed by the work and the fellow broker who seemed very wealthy and charismatic. After a while he realized that the firm was taking advantage of their client by selling stock for companies that don’t really exist.
Ethics can be defined as the moral principles that govern a person's or group's behavior. In this movie there are various ethical issue. The principal ethic issue is the fraudulent activity that the firm is doing. That ethical problem goes hand-to-hand with the behavior of the employees. As mentioned before the firm was selling stock to their client of companies that didn’t exit and played with the market to increase and decrease the price stock. The firm said that they were legit because they used what it is called a bridge financing. Bridge financing is a method of financing used by companies before their IPO, to obtain necessary cash for the maintenance of operations. This is legal as long there is no connection between the firm and the investor. In this case, JT Morgan was using…...

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