How does the stock market work? A (20 mins?) cute and simple animated movie from 1952 titled "What makes us tick", tries to present a simplified model of the stock market. It's available in the publicly available collection of movies from Prelinger's archives .
It is set in 1950s . The story unfolds, as seen as through the eyes of a typical worker living in a typical neighborhood in a typical city or town, Mr. John Q Public and his dreams. A fictitious company called Oil Drum Manufacturing company is shown as growing from a small company to a publicly listed company in NYSE.
It shows a simplified model of the role of investment bankers, SEC, NYSE, brokers, buyers, sellers, Board of Directors and how the trading happens from end to end. From the time a buyer in Colorado orders shares till he gets it executed on the floor of the exchange.
The John of the movie can be any Ram or Shyam in India . Substitute SEC (Securities Exchange commission) with SEBI (Securities Exchange Board of India), and NYSE with BSE or NSE. This can very well illustrate the Indian story, even though we are way smaller in scale. It shows how public participation of the stock market can fuel the growth of a Nation to economic prosperity, while leading to individual prosperity.
The movie closes with a caution on risks, and exhorts you to Get the facts before you put your money to work. Couldn't agree more!
Critics pick on the movie and indicate that this is an oversimplified model, confines to manufacturing (and not services), and presents an idealistic scenario of Capital Markets.
So what? We didn't foresee or anticipate Enron or Satyam scandal at those times. A short movie can only pack so much stuff without mixing up the messages
If you would like to teach your kids about stock market, here's a very good way. Please check out. I simply loved it. What do you think?
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