This question relates to the movie Wall Street: Money Never Sleeps. Why does the rumor of nationalisation affect the interest in Hydra Offshore shares?

  • This seems like more of a finance question than a plot question. – jonrsharpe May 5 '15 at 12:27
  • If i knew how to delete a question, I would @jonrsharpe. I am new to this site – Lilly May 5 '15 at 12:53
  • ...click the delete link just under the tags? See e.g. meta.stackexchange.com/q/5221/248731 – jonrsharpe May 5 '15 at 12:55
  • The only options under tags are : Share/Edit/Flag... – Lilly May 5 '15 at 13:09
  • I'm voting to close this question as off-topic because it's not movie related but rather concerns finance. – Paulie_D Feb 3 '17 at 14:59

When something gets Nationalized, it becomes a government entity. It is no longer a private business designed to make money for shareholders. Additionally, the former owners may or may not be paid for the company, similar to what we have in the U.S. called "Eminent Domain" for property. Although, with Eminent Domain the owner must be paid a fair price for their property, with nationalization of a corporation the shareholders may lose their entire investment.

Once the rumor was spread by Jake, the shares begin to dive as people begin selling their shares before they're left with nothing.

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