Infamous for the biggest scam in history, Bernie Madoff was a penny stock trader who grew to found the Nasdaq stock exchange gaining the trust of the richest.
Eventually, Bernie collaborated to found the Nasdaq stock exchange. Building Nasdaq was his most tremendous success, and he ultimately gained the trust of many of the wealthiest people in the world. Once they began trusting him with their money, it resulted in his grand Ponzi scheme,the Securities Investor Protection Corporation (SIPC) trustee estimated actual losses to investors of $18 billion.
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Scams aside, Madoff’s strategy can bring both an example of the importance of being careful about who to trust with your money, and as well as how you can benefit from a good reputation to grow a business. However, you should also be responsible for not committing a felony, and understand that it’s better to be honest than keeping a lie that can hurt yourself, those surrounding you and other people as well.
Bernie Madoff's origin: before things got ugly
Bernie Madoff was born on April 29, 1938, in Queens, New York.
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He was the son of Jewish immigrants who had fled Poland just before the outbreak of World War II. His father, Irving Madoff (1909-2002), worked as a salesman and made money through hard work and determination; his mother, Ruth (1911-2001), was a housewife who cared for her children and kept their home running smoothly while her husband was away working long hours at his job. Bernie had two brothers: Peter (1934) and Fred (1936).
The beginning of a great career (that later got rot)
In 1960, Madoff founded Bernard L. Madoff Investment Securities LLC as a broker-dealer for penny stock with $5,000 of his own money and a loan of $50,000 from his father-in-law.
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After his brother, Peter, joined the Madoff firm in 1970, he began to build a reputation for employing cutting-edge computer technology in the traditional stock trading business.
He was an early player in the electronic market that would eventually become the modern Nasdaq and was involved as an investor in several other computerized brokerage platforms.
Madoff's leadership in the market and his companies' willingness to challenge Wall Street traditions made him a trusted adviser as they tried to modernize the market.
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