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Money In the Movies BATMAN BEGINS
Millions of bats. Hi tech gadgets. And prisoners who have just HAD it with the quality of prison
food. I'm Peter Bielagus and this is money in the movies.
Hello and welcome to money in the movies where we review films based on their financial accuracy.
Today's movie is Batman Begins directed by Christopher Nolan and starring Christian Bale
as the legendary crime fighter.
The film is about the early years of Batman, from his journey as the disturbed young Master
Wayne. To a billionaire who must eat crappy Siberian prison food. To his eventual career
as the costumed vigilante.
In the film, Mr. Earle, played by Blade Runner Star Rutger Hauer, is running Wayne Enterprises
when Bruce Wayne returns from the Siberian prison with crappy food.
In his office, Mr. Earle tells Bruce Wayne:
MR. EARL “I’m sure you realize I can’t stop the
big machine, too many wheels turning. We’re going public.”
Earle’s plan is to move Wayne Enterprises from a private company to a public company.
But ummm...what is the difference?
Well, all companies start out as private companies, which simply means that not everyone can buy
into that company. Most companies, public or private, are divided up into pieces called
shares.
With private companies, only certain people can buy those shares and those people usually
need to be invited by the existing owners. If you're not invited, you can't buy in. Public
companies are the opposite. Anyone with the money can buy in. Why does a company become
public? Usually, to raise money.
Imagine a company needed $1 billion to build a new factory.
One way to raise that money would be to sell 10 million shares at $100 per share. Do that
and you got your billion dollars.
When Facebook went public in 2012, it sold 421 million shares at $38 per share allowing
it to raise $16 billion very quickly.
A company goes public through an event called the Initial Public Offering or IPO.
The IPO is the first time anyone, you me, your mom, that's your mom? can buy shares
in the company.
In the film Mr. Earle is a bit surprised to learn that Mr Fox now has his job. So he call’s
Bruce Wayne and tells him he doesn’t make decisions anymore because:
Mr. Earl “The company went public a week ago.”
Only to find out that:
WAYNE “And I bought most of the shares. “
Ahhh. This is a slight point in the film where Bruce Wayne commits financial fraud. That's
right, Batman might be trying to stop violent street crime, but he is participating in some
pretty high profile white collar crime.
When a company goes public, the top managers and owners must disclose what they are doing.
Private companies have a lot of leeway, but a public company pretty much has to disclose
everything. Buying back shares in his own company and not telling anyone is illegal,
under something called Regulation M. M for MMMMMM….
MICHEL KANE “Master Wayne.”
That's right Master Wayne. You might fight the street thugs, but you are a Wall Street
thug. Sorry Batman fans, a shareholder like as big as Bruce Wayne would never be able
to buy back those shares in secret without going jail I give this film ONE out of 3 dollar
signs.
I'm Peter Bielagus and this, is
money
in
the movies.