10 Lessons You Can Learn from Top Finance Movies

 

1x1.trans 10 Lessons You Can Learn from Top Finance Movies

Top finance movies

 

Movies have always been very popular amongst youngsters, not just for their entertainment value, but also from the learning perspective.

It is a catching trend in colleges and universities as well to show movies and documentaries as a part of the curriculum. Today in this article I will tell you the top 10 finance movies of all time that teach you important lessons of finance and the corporate world.

By watching all the below mentioned movies, you will get to know what it takes to be in the finance world and what it takes to succeed.

 

1. Wall Street

 

 

According to me, this is one of the best movies ever made on the financial world and stock markets. It tells you the perspectives of an ex-big shot, current big shots, big firms and their management thinking. It provokes you to actually think and ponder over the famous questions “how much is enough?”

As a finance aspirant, this movie presents you with a list of do’s and don’ts as a finance professional, and gives you an opportunity to look at the larger picture and not look at immediate gains.

This article is aimed at giving you a a list of movies that will give you a taste of finance world with a tinge of entertainment. If you have any comments, please do not hesitate to write back. Keep watching, and keep learning!

2. Margin Call

 

 

This movie was again based on the famous financial crisis of 2008.

The movie is about a company and its employees 24 hours before the downfall. It involves characters from all rungs of hierarchy and how they react and respond to the signs of downfall.

As a finance aspirant, it gives you a picture of what to expect and how to react in a few situations.

Another important lesson from this movie is that past data and track records are not the only things to bank on, rather using discretion and presence of mind is much more important if you are faced with a crisis.

3. Rogue Trader

 

 

Inspired by a true story, this movie gives you a real life scenario of a man, who becomes successful, but his own deeds take him down at a later stage. This movie will give you the real picture of how employees, companies, competing companies and the overall economy are all interconnected and linked together. This movie teaches you to learn with time and success doesn’t mean that you are always right and everything you do to get more success is justified. It again explains the importance of ethics in any profession, especially where large sum of money is involved.

4. Boiler Room

 

 

This movie is a high powered drama wherein the director has shown irony of sorts. First the protagonist starts making money in his own apartment by illegitimate means.

After the refusal of his father, he joins a company as a broker that makes cold calls. As it turns out he has a natural talent for it and achieves great heights in no time.

But pressure to perform again takes him back to using trickery and deceit to keep the bosses happy. This movie gives you great insights on the pressures you will face as you succeed in your career.

5. The Wolf of Wall Street

 

 

This movie again tells you how a banker gets instant success in Wall Street and dramatic fall as a result of his lifestyle and indulgence.

It is a typical Martin Scorsese movie that digs deep into the human psyche and stalwart performances.

But the thing for you to notice as a finance aspirant is deciding for yourself the thin line of difference between ethics and alternate means to earn money and succeed.

6. Limitless

 

 

Exposing the darker side of success in the corporate world, this movie will tell you the glitter associated with the success and money.

With the protagonist reaching new heights of success and achievement by the day, he also attracts unnecessary troubles in his life.

Although the plot of the movie is fictitious, it still gives you an idea of the routines and lifestyle associated with the Wall Street.

7. Trading Places

 

 

This movie is funny and comic in nature, but it leaves you with a learning of environment and heredity.

It also gives you insights and a few peculiarities of the commodities business.

The movie has a very good flow, and lets you understand the subtleties of the commodities market from a lay man’s perspective as a few character switch places and handle the situations in a lay man manner.

8. Inside Job

 

 

This documentary portrays the dark and unsettling truth behind the crisis of 2008 that started with the economic powerhouse USA and went on to percolate to the entire world, including third world countries.

The movie offers an explanation of the meltdown, and the connections between politics and corporate world and the corruption that left millions of people jobless and in dire need of money.

9. Other People’s Money

 

 

This movie is particularly a must watch for you, if you are interested in investment banking especially for mergers and acquisitions.

The lead character in this movie looks for the opportunity to sell of the profit making businesses, whereas the owner doesn’t. The movie depicts tussle between the conventional line of thought and the aggressive business thought in a nice manner.

10. The Pursuit of Happyness

 

 

This movie had more to do with the determination of a man rather than his acumen as finance professional.

I would suggest you to start off by watching this movie amongst all others because of two reasons: One, it is a feel good movie and would motivate you to push yourself in adverse situations. And two it will help you identify the soft skills required to succeed in the finance world.

Hope you liked this article. Please share your learning from any other movie which is not covered here.

Image credit: business dot financialpost dot com

Financial Risk Analysis – Its Importance and Developing the Model

 

1x1.trans Financial Risk Analysis – Its Importance and Developing the Model

Financial Risk Analysis

 

One of the essential components of financial analysis happens to be evaluation of credit risk.

This is important for it’s known to effectively assess the ability of a borrower when it comes to repaying the loan to his or her creditor.

Analyzing the financial risk involved actually stands to benefit both the borrower as well as the creditor.

Financial Risk Analysis concepts:

 

The concept of credit risk

Now, before getting into anything else, the first thing that you’ve got to realize is the credit risk involved.

You see, investors generally stand to be at a loss of principal or even a loss of financial award when it comes to the borrower either failing to pay back the loan or perhaps not meeting the terms of the contract involved.

Hand in hand with this goes credit risk plus there’s a borrower expectation involved wherein future income is used for the purpose of paying off an already existing debt.

Actually higher the risk involved, higher will be the interest rate that an investor would put on the loan.

The balanced scorecard system

This particular system makes use of the key performance indicators or (KPI) for the purpose of credit risk measurement.

This can be done by evaluation of capital adequacy, customer credit quality and the gross debt service ratio.

Analysis of the cash risk flow

Experts are generally seen to create both net worth as well as cash flow statements for the purpose of assessing the cash flow risk.

As for a net worth statement, then it essentially takes a look at all the resources of a client as well as the liabilities.

This would effectively help create a number that’ would be representative of the financial situation in hand.

As for a cash flow statement, then it adds together all the expenses as well as income to understand whether a person has positive cash flow or a negative one.

Analysis of employment risk

This analysis isn’t really beneficial to lenders, but it’s definitely beneficial for the borrowers to look into.

Borrowers are required to take a close look at their job situation.

Now even if it’s rather secure, experts always advise that they maintain a good enough resume and continue networking effectively.

Developing financial risk models

Again financial risk models happen to be rather beneficial for companies to identify, analyze as well as forecast risks.

A financial risk model is essentially known to provide a quantitative approach to risk analysis.

Enlisted below are 3 basic steps that you can follow to develop financial risk models -

1. Make use of spreadsheets:

The first thing that you should do is make use of Excel spreadsheets.

These are rather commonly used for the purpose of drawing up financial risk models.

This is because with Excel, handling ratios and advanced simulations practically becomes the simplest thing possible.

2. Get financial risk software:

SAS and SPSS happen to be the top 2 software for financial risk analysts which are practically very similar programs.

Though fact remains that SAS is more often than not referred to as being more complex.

Both are known to provide advanced quantitative calculations and that too for significant amounts of data in a matter of minutes.

3. Try developing a customized solution:

There are certain instances wherein the requirement is that of a very particular and intricate financial risk model.

This is why a customized solution should prove ideal.

The above discussion should enlighten you about the need of financial risk models and how financial risk can be analyzed in the first place.

It’s not a big deal provided you acquaint yourself with the nuances in concern and the advantages involved are obviously huge.

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