Company Development: I Build A Conscience National Enterprise

Chapter 207 Short Squeeze! Hurricane Power Coin

The bad news comes from Benjamin.

This one comes from a trader on Financial Street.

Never seen such a magical scene.

The price of power coins has been rising all the way, rushing to a high position of 0.4 meters.

Even this price is higher than the electricity price of the grid!

These people are crazy!

This is too exaggerated!

Benjamin suddenly thought of something!

He immediately asked his assistant to buy power coins from the market.

out of stock!

No one is selling electricity coins!

what happened!

Sitting in the overseas branch building of Lingfeng Group, Li Tao looked at the gradually rising sun outside and said:

"It's my turn to come next."

Li Bo looked at Li Tao suspiciously and asked, "President Li, what are you going to do?"

Li Tao smiled and said, "Revenge!"

"Revenge? To Merius Motors?"

"Of course, there is also the trader who shorted our power currency."

Li Tao sneered, sending out a strong murderous look.

Now Li Bo said puzzledly: "It's good if we can defend, and can we fight back?"

Li Tao said with a smile: "Your financial management ability is good, but you lack the overall situation. You must accumulate experience before you can invest."

Li Tao lit a cigarette and said, "Let me ask you, when you go short, do you have to pay back the electricity coins you borrowed?"

Li Bo nodded and said, "Of course."

Li Tao said: "What if I can't afford it?"

Now Li Bo understood, he thought of a term: "short squeeze!"

A short squeeze, which is a very rare situation in the trading market.

Ever since short selling was invented, there have been occasional short squeezes.

This is from an acquisition case.

In order to suppress the stock of the acquired company, a company made crazy acquisitions.

The acquired company keeps buying the stocks sold by the other party to protect its own equity.

But soon, the short-selling company found that there were not many stocks in the market.

And when he goes short, the borrowed stock will be returned!

As mentioned earlier, shorting is to borrow stocks first, and then sell them when you get them.

Suppress the stock price by selling and releasing bad news.

Wait until the stock price reaches a low level, then buy the stock again and return it to the institution that lent the stock.

What if the stocks in the market can't be repaid?

This is a rare short squeeze in the market.

For those who do finance, only when you borrow can you repay.

If there is no way to repay the loan, it will be a disaster for a trader and the company behind it.

This is reputation bankruptcy!

If the loan is money, you can also repay the debt by borrowing money.

But if what is borrowed is not money, but a commodity such as electricity coins.

That would be miserable.

Moreover, it is not just the Meris Automobile family that shorted the electric currency with Meris Automobile.

There are also large and small institutions in the market, all of which are shorting power coins.

And some keen large structures have already discovered the crisis of insufficient power coins in the market.

So these institutions began to buy power coins crazily.

They don't borrow as many cars as Merris, but they can still pay them back if they try hard.

It's better to lose money than go bankrupt!

Li Bo asked again: "But the short squeeze has already happened, what can we do?"

Li Tao said with a smile: "Of course it will further cause liquidity tension, and purchase more electric power from the market!"

Li Bo understood immediately!

For power coins, Lingfeng Group is the banker.

Soon, two important news spread to all users of Powercoin.

Emily also received the push.

In order to give back to users, the price of power coins has risen, and Lingfeng Group decided to sell [Smart Scooter] at a discount price of 30%! Users who purchased in the early stage will refund the overpaid 10,000 coins in the next month!

Another news is that customers who purchased solar panels in installments before will pay the remaining payment with the market price of power coins.

The last piece of news is that the new solar panels built near the Meris factory can also enjoy a 30% discount if you pay with power coins!

These three news stimulated retail investors even more.

A large number of power coins have returned to the hands of Lingfeng Group!

And this makes the price of power coins on the market even higher!

Because the power currency cannot be received, the price curve begins to rise crazily!

0.4 M Yuan!

1 meter yuan!

10 USD!

50 yuan!

From the lowest of 0.1 meters, it rushed to 50 meters!

A full 500 times increase!

But those institutions that are locked up are still buying wildly!

Even though I know I've been cut into leeks, it's better than credit bankruptcy!

These were still breathless, and Benjamin simply lay flat.

The short-selling margin has long been confiscated by the institution.

The power coins in his hand are simply not enough to return to those institutions.

There is no way to repay the power coins circulating in the entire market.

Benjamin (good Zhao) knew he was in the rarest of short squeezes.

But he still has nothing to do!

Who is the biggest power coin buyer at present, that is Lingfeng Group!

The money of retail investors has also been absorbed.

Power coins on the market take time to produce.

But the contract is about to expire.

Ruined!

Benjamin knew he was doomed.

His reputation as a trader is completely rotten.

A short-squeeze trader who kills him will be in the textbook!

He is sure to be the talk of lecturers and students of economics.

It was even written into the teaching materials, reminding some later traders not to be so stupid.

And what about Malpus who let Benjamin handle it?

His life is not easy. .

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like