Shenhao started after the college entrance examination

Underground parking lot of Hotel Eclat.

In the black Rolls-Royce Ghost cab, An Liang started the engine and left. After leaving the Éclat Hotel and joining the traffic, An Liang had an imperceptible sneer on his lips.

There really are no allies in the financial sector!

After all, it is Hongguoguo’s money game. In an industry that faces money directly, only interests remain.

An Liang returned to Yunjing International Apartment first, and he began to communicate with Fan Ping and Li Gang from Anxin Investment Company to discuss how to target Tesla.

An Liang has already used the advanced five-day Tesla stock trend information card. In the next five trading days, An Liang will obtain Tesla stock trend information and obtain real-time changes.

Now we just need to be patient and wait for the US stock market to open!

At present, Anxin Investment Company has prepared the corresponding funds, 6 billion funds from Li Cunyuan and the others, 8 billion funds from Zhao Wanxi, and 8 billion funds from Tiantian Bai Yujing Club.

The upper limit of the amount of funds An Liang set for himself was 8 billion, thus forming a total capital scale of 30 billion Xia Guoyuan.

‘An Liang: Lao Fan, Lao Li, wait for the U.S. stock market to open and directly short Tesla.’

‘An Liang: We will decide the specific short selling price after the market opens.’

‘Fan Ping: Received’

‘Li Gang: No problem. '

Being short is not without risk.

To explain short selling in the most understandable way:

If Tesla's stock price is $120 per share when the market opens, Anxin Investment predicts that Tesla's stock price will fall in the future.

Then Anxin Investment Company can 'borrow' Tesla shares from brokers in advance for sale.

For example, Anxin Investment Company borrowed 50 million Tesla shares from a brokerage firm and sold them on the market first. Assuming that the stock price does not fall when Anxin Investment Company sells, Anxin Investment Company will have received US$6 billion in revenue in advance.

At this time, Anxin Investment Company only needs to pay three fees.

First, the brokerage firm will ask for a portion of the interest from Anxin Investment Company. This is an unavoidable fee, but this fee is very low.

The second is that if Tesla suddenly pays dividends, the 50 million Tesla shares borrowed by Anxin Investment Company will also need to compensate the brokerage for the dividends it should receive.

But this possibility is also very low and basically impossible to happen.

The third one is the transaction fee. For this fee, given the large amount of funds of Anxin Investment Company, brokerages basically waive transaction fees.

Simply put, the above three expenses are minor problems!

The real big problem comes from buying 50 million Tesla shares and returning them to the brokerage.

Suppose Tesla's stock price rises and suddenly rises to US$200 per share, then Anxin Investment Company would need US$10 billion to purchase 50 million shares of Tesla stock.

This is equivalent to a direct loss of 4 billion!

Although there is no clear holding period for short selling in the U.S. stock market, in theory, you can hold this short-selling stock for a long time and wait for a reasonable time to sell it.

However, due to the margin mechanism and the huge demand for short selling in the market, there is a risk of being forced to buy to cover.

Once such a risk occurs, Anxin Investment Company will suffer a direct loss of US$4 billion!

Such risks may seem impossible, but they are actually possible.

For example, various financial giants unite to short-sell, resulting in huge short-selling demand in the market. When the stock price rises, Anxin Investment Company may be destroyed by the financial giants joining forces.

Even if Tesla's stock price really fell, financial giants joined forces to sweep away the goods and hoarded all Tesla's stocks, but would not sell them to Anxin Investment Company.

If they join forces to force Anxin Investment Company to buy and repay the bonds, it is possible to directly increase Tesla's stock price, thereby destroying Anxin Investment Company.

The real investment market is not a stock simulation game!

When Anxin Investment wants to go short, it will definitely be able to 'borrow' stocks. There is also no time when Anxin Investment wants to buy and repay the bonds, then it can definitely buy Tesla stocks to repay the debt.

Stock prices are a profound thing!

Only people who don't understand the stock market think that since Brother Liang knows the future trend of Tesla's stock, he will be able to defeat everyone invincibly.

That’s not the case!

Not to mention NSS rule restrictions, just the size of the funds is different.

If Brother Liang is just an ordinary person, he can really make a lot of money with one million US dollars, or even 10 million US dollars, if he knows the trend of Tesla stock in advance.

However, Brother Liang now controls 30 billion Xia Guoyuan, which is equivalent to more than 4 billion U.S. dollars. This amount of funds has already caused a qualitative change from a quantitative change.

This is why even if Anliang obtains the future price dynamics of Tesla stock, he still has to be cautious.

Because financial giants can really change the rules to a certain extent.

Just look at the confidence that financial giants have in Tesla.

If the financial giants in Bald Eagle Country really believe in Tesla, even if Anxin Investment Company is crazy about shorting Tesla, those financial giants can join forces to blow up Anxin Investment Company.

However, these financial giants never expected that An Liang had a trump card in his hand!

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Author of Humble Fight: I saw a question in the book review section. Brother Liang knew the result in advance, so why are you pretending? So this chapter is a little deeper. If you don't understand it, just shout"Brother Liang, Niubi!"

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Update time: October 3, 2020 07:11:23, please ask for a monthly pass, thank you!