How did Jordan Belfort, A.K.A The Wolf of Wall Street get his money

Question

I know its some sort of scam but i dont know anything about it

In: Other

Answer 1

He was was selling stocks that were untracable, taking 50% commisson(invest 10000 he gets 5000)
The idea was that he’d lure wealthy people in with stocks from large established companies, think pharmaceuticals, ibm etc. These were invested legitametely and only netted him 2-3%. Then once he has their attention, would go on to advertise ‘penny stocks’ that were worth couple of cents a share. He’d sell them as if they were start ups or up and coming businesses. This is where he made his money.