Rebirth 79: I opened a bank in the United States

Chapter 31 Preparing for a sellout
Everyone knows the consequences of a large number of tradable shares suddenly flowing into the market and selling them off.Let’s not talk about getting profits from arbitrage or arbitrage, but if other retail investors or financial institutions see this scene, will they panic and sell?

Of course, financial institutions still have advantages over retail investors.At least, simple short selling operations, they can definitely see it, and they are even happy to do so
When it comes to borrowing stocks, many people have doubts.Why is it that Julian or other financial institutions, who already hold high-priced stocks, are willing to lend him stocks to lower the value of their own stocks when they know that Carter borrowed stocks to lower the stock price and profit from it?
The reason why short selling can exist is because of this operation, they can also profit.When borrowing stock, it will definitely not be for nothing, and Carter still has to pay the interest. Besides, when Carter short-sells the stock of Vickers, will Vickers come out to save the market? ?

Forcibly buy the stocks sold by Carter to maintain the balance of the transaction and keep the stock price at a reasonable limit?This is just one, and second, even if the Vickers company does not end, when the stock price falls to a certain level, will other retail investors, especially financial institutions that know the inside story, end up buying the bottom?

No matter who ends up, the price will not continue to fall without a bottom line.If you act quickly, or if you accidentally use too much force, Ka Tei said that you will make money, and you may even lose money. After all, it is not uncommon for the stock market to bottom out and bounce higher than the original stock price. Pass.In this way, it is really hard to say whether those who lent stocks will make a profit or a loss. Besides, even if the stock price drops, the dividends will still be so much!As long as the share remains the same, generally speaking, the impact is not significant.

The risk of short trading is risk. No matter whether Carter makes a profit or loses this time, it is certain that Vickers will be offended to death.Using more than [-]% of the outstanding shares to short the stock price of Vickers, Vickers will have to bleed once if it wants to save the market, and if there is such an avalanche-like plunge, it will be even more difficult for Vickers. The Si company is going to hell.
There are people who are good at long trading in the stock market, and there are also many people who are good at short trading.Which listed company hasn't been dealt with like this?But generally, it doesn’t matter if you make small moves and toss and fiddle. After all, the laws of the market are here, and others cannot interfere with the normal operation of the market.But you're being so ruthless right now, isn't it a little too much? !
Julian wanted to persuade Carter, "Be a good person and stay on the sidelines, so we can meet each other in the future", but after thinking for a while, he still held back the words.It's normal for young people to dare to think and act, to act vigorously and resolutely.

They don't know what is balance and what is mean.They only knew that "either you die or I die", and after a moment of swinging between offending Vickers and offending Carter, Julian made his goal clear.

"I'm going to call to borrow stocks, and I can trade them after the market opens. But I have to tell you one thing first. In order to protect the interests of the lender, the proceeds from the stock exchange will be temporarily deposited with me. We'll split the bill after the matter is over."

Borrowing stocks to sell them means that you don't have to spend a penny in the early stage.And after making money, you can also use the money you earn to buy low-priced stocks and return them back, and the rest is your own profit.It's like you go to the wholesale market and ask someone's boss, "Hey, the boss borrowed some goods from me, and I'll sell them to make money and then buy the same goods back to you", the boss can only believe you!
Therefore, the securities company is the guarantor between Carter and the lender.They verified Carter's assets and understood that even if these stocks lost money, Carter would still have enough money to buy high-priced stocks to pay back, so they were willing to help him borrow stocks.The lender is also willing to lend stocks for the sake of the securities company.For the sake of insurance, the money obtained is first placed with the middleman, which is a third-party guaranteed transaction in securities transactions.

Like Taobao Yimao in the future, merchants and customers do not trust each other, so there is a middleman.Put the money on Taobao first, wait for the goods to be delivered, and after the two parties confirm that they are correct, the money will be delivered
"Also, I don't recommend that you sell it all at once. Only by selling in batches can you maximize your profits. Moreover, you must remember to stop in time. Don't be greedy. If you are greedy, you will be easily trapped."

Before leaving, Julian exhorted again with uneasiness.Although Carter said that this short-selling operation was mainly done by him, the shrewd Julian discovered that Carter is a person with a strong desire to control from the conversation yesterday, and the operation is the operation. In the end, Julian decided that Julian would not do it by himself. .

"Okay, I see, I will pay attention to draw a goal line for myself."

"This is the best!"

After the discussion, Julian went to coordinate resources.Carter stayed in Julian's office and continued to look through the information of the remaining companies on the list.

Almost all the companies on this list are suitable targets for short selling.Short trading itself is a very speculative and short-term operation method. After all, neither the stockholders nor the company involved are willing to see the stock price of the company they invest in plummet all the way.After a short period of time, there will definitely be a reaction.

It is not difficult to see from this that Julian really heard what he said yesterday that he would not stay long in New York.
Now Carter is more and more satisfied with Julian. He thinks what the customer thinks and is anxious about the customer's urgency. It is hard to justify the failure of such a person!However, is this really just a stockbroker for a small securities company?
Julian's performance surprised Carter, whether it was professionalism or sophistication, this guy seemed too seasoned.Even if he found him and chose him as his stockbroker, it would be a waste of money, but Carter still couldn't believe that he found such a capable broker so easily.
Just thinking about Julian, the lord came back, opened the door and gave Carter an "ok" gesture:

"There is no problem with the company, and it can be transferred to your account after the opening of the market. Other companies will contact you later. Before the market closes today, I guarantee that there will be 70 shares in your account! Are you looking at other targets? Yes Did you look at the central instrument?"

The New York Stock Exchange, or the entire U.S. stock market, implements the T+2 trading system.That is to say, after buying stocks, the funds will be delivered within three working days.Only after the delivery is completed and you have held the traded stocks for two full days can you sell them.Therefore, the plan for Vickers Corporation must not be carried out today.

But today, all 70 shares were collected in one day.This will undoubtedly greatly facilitate Carter's future operations, and it can also reflect Julian's ability. Not every stock broker has the ability to raise a large amount of resources in such a short period of time.Many times, money is not enough!
And borrowing stocks does not require Carter to advance money.After so many days, you can't just wait, can you?Julian felt that Carter would definitely not be satisfied with this deal, so he asked immediately.

Carter also came to New York with great difficulty, just as Julian thought, how could it be enough to make a fortune? !
"There are also this company, this company, and this company. I currently think these three are the most suitable targets. I am not optimistic about the industries they are in."

(End of this chapter)