Name: Revilla, Christian James & Sanchez, Hannalee Group Number: 2

ACC 226: Financial Market 7:30 – 9:30 AM

Movie Analysis
Title: Boiler Room
Director: Ben Younger
Genre: Crime, Drama and Thriller

Questions:
1. Why do you think this movie is titled “Boiler Room”?

For us, the movie is entitled “Boiler Room” because in business terms, a Boiler
Room refers to an outbound call center which sells questionable and unreliable
investment through the telephone. It typically refers to a room where salespeople work
using unfair, misleading sales techniques, often selling pennies, private placements, or
committing plain stock theft. The use of falsified and reinforced information, along with
checked information provided by the organization, is also embraced. In the movie, it is
shown that one of the characters named J.T Marlin uses extensive telephone selling of
stocks to mislead and take advantage of other people. The boiler room of J.T Marlin
depicts the start of the fraudulent activities that’s why it is entitled “Boiler Room”.

2. Explain how J.T. Marlin scams its clients.

J.T. Marlin, one of the main characters, traded in chop-stocks, is a fake

enterprise engaged in pumping and dumping, a scam where false demand is generated
to inflate rates for stocks of microcaps and shell firms. These businesses tend to have
proprietary stock records, which is not available in the public domain. As equity prices
increase significantly, these businesses throw large amounts of stock on the market,
crushing stock prices and leaving investors bankrupt. This activity is considered
fraudulent because it misleads its clients in order to gain higher return.

3. What advice does this movie offer to investors?

The movie is not just all about entertainment, drama and thriller because this
movie also imparts significant lessons to its viewers. As future investors, we should be
wise and mindful about our investments. We should first inform ourselves of how that
particular investment works because if we are uninformed, we are prone to receive
misleading information and eventually we will be scammed. If possible, we should first
consult financial professionals in order to guide us into the right path.
4. What are the things you need to consider when investing?

There are a lot of things to consider when we are investing, first and most
importantly is to educate ourselves. We should have enough knowledge of what we are
going to take because investment is not just about earning, we must also consider the
risk associated in each investment. It's critical to take the time to research what factors
may have an impact on your investments so you can make informed decisions.
Understanding what's going on in the market, domestically and globally, is important as
it may have an impact on your investments. This can include things such as growth,
unemployment rates, interest rates and inflation and even political events.

One of the most important things to remember when investing is to have a plan.
It helps you bring your investment goals into perspective, not just when and how you
plan to reach them. It will also help to minimize the possibility of feelings impacting your
investment choices. It's important to consider how much time you're giving yourself to
build towards your financial goal and how much risk you’re prepared to take on to get
there.

5. After seeing the movie, are you more likely to invest using online do-it-yourself
trading instead of ‘full-service’ brokerages? Explain.

After watching the movie, we have realized a lot of things. When it comes to
investment, we still prefer to invest with the help of ‘full-service’ brokerages. Because as
new to this industry, we are not knowledgeable enough of how this investment schemes
work that’s why we need to seek advice and aid from those full-service brokers because
they offer a wide range of services to its customers, including analysis and advice,
retirement planning, tax tips, and more. Of course, much of this comes at a charge, as
fees on full-service brokerages are far higher than commissions on discount brokers. By
doing this, we will be guided by a licensed professional and will lead us to a wiser and
sound decisions in the future.