Rebirth 79: I opened a bank in the United States

Chapter 31 Preparations for short selling

Everyone is well aware of the consequences of selling when a large number of circulating stocks suddenly flow into the market. Let’s not talk about whether the arbitrage will be profitable or not. If other retail investors or financial institutions see this, will they panic and sell?

Of course, financial institutions still have a great advantage over retail investors. At least, they can definitely see simple short selling operations, and they are even happy to do so...

When it comes to borrowing stocks, many people have questions. Why is it that even though Carter knew that he wanted to drive down the stock price and make a profit by borrowing stocks, Julian or other financial institutions who already held high-priced stocks were still willing to lend him stocks?

Lower the value of your own stocks?

The reason why short-selling operations can exist is because of this operation, they can also make profits. When borrowing stocks, it will definitely not be borrowed in vain, and Carter still has to pay the interest. In addition, when Carter asked Victor

When the stocks of the pulling machine companies are short-selling, will Vickers Company step in to rescue the market?

Forcibly acquiring the stocks that Carter sold was used to maintain the balance of transactions and keep the stock price at a reasonable limit? This is only one of the first, and the second is that even if Vickers Company does not end up, when the stock price falls to a certain level, other retail investors

, especially financial institutions that know the inside story, will they 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 accidentally use too much force, you will make money, and you may even lose money. After all, the stock market has bottomed out.

, it is not unheard of for the stock price to bounce higher than the original stock price. In this way, it is hard to say whether those who lent the stocks made a profit or a loss. Moreover, even if the stock price fell,

, the dividends are still so large! As long as the share remains unchanged, overall, the impact will not be big.

The risk of short-selling is risk. Regardless of whether Carter makes a profit or a loss in this round, it is certain that he will offend Vickers to death. Using more than 30% of the circulating shares to short the stock price of Vickers, maintain the

Vickers Company will have to bleed heavily if it wants to save the situation, and if there is an avalanche-like plunge like that, it will be even more fatal for Vickers Company...

There are people who are good at long-term trading in the stock market, and there are also many people who are good at short-term trading. Which listed company has not been done like this? But generally it doesn't matter if you make some small moves and mess around, after all, the laws of the market are here.

, others cannot interfere with the normal operation of the market. But you are so ruthless right now, isn’t it a bit too much?!

Julian originally wanted to advise Carter, "Leave a little bit of caution in your life so that we can meet each other easily in the future." But after thinking for a moment, he suppressed the words in his heart. It's normal for young people to dare to think and act vigorously and resolutely.

They don't know what balance or moderation is. They only know that "either you die or I die." After a moment of vacillation between offending Vickers Company and offending Carter, Julian clarified his goal.

"I'm going to call to borrow stocks right now, 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 trading will be temporarily deposited with me.

We will divide the accounts after the matter is over."

Borrowing stocks to sell means you don't have to pay a penny in the early stage. After you make money, you can also use the money you earned to buy low-priced stocks and pay them back, and the rest is your own profit. This is like if you go

In the wholesale market, go to the boss and say, "Hey, boss, lend me some goods. I'll sell them and make money, then buy the same goods back to you." Only if the boss believes you can you be a fool!

Therefore, the securities company was the guarantor between Carter and the lenders. They verified Carter's assets and understood that even if the stocks were lost, Carter would have enough money to buy high-priced stocks to repay, so they were willing to help him borrow the stocks.

Lenders are willing to lend stocks because of the reputation of the securities company. For the sake of insurance, the proceeds are first placed with the intermediary. This is a third-party guaranteed transaction in securities transactions.

Just like Taobao in the future, merchants and customers do not trust each other, so there is a middleman. The money is deposited with Taobao first, and after the goods are received and both 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 profits. Also, you must remember to stop selling in time. You must not be greedy. If you are greedy together, you will easily be trapped."

Before leaving, Julian warned again uneasily. Although Carter said that he was mainly responsible for the short-selling operation this time, the shrewd Julian discovered from yesterday's conversation that Carter is a very controlling person.

, Operations are operations, and in the end, Julian will definitely not do it himself.

"Okay, I understand. I will make sure to set 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 of the companies on this list are suitable for short selling. Short trading itself is a highly speculative and short-cycle operation method. After all, whether it is a stock investor or the company involved,

No one wants to see the stock price of the company they invest in plummeting. After a slight decline for a period of time, there will definitely be a reaction.

From this, it is not difficult to see that Julian really heard what he said yesterday that he would not be able to stay in New York for long...

Carter is now more and more satisfied with Julian. He thinks about his clients' needs and worries about their clients' concerns. It is unjustifiable for such a person not to succeed! However, is this really just a stockbroker in a small securities company?

?

Julian's performance surprised Carter. Whether it was his professionalism or his sophistication, this guy seemed too sophisticated. Even if he found him and chose him to be his stockbroker, it would be a huge investment, but Carter still couldn't believe it.

I actually found such a capable agent so easily...

Just as he was thinking about Julian, the real owner came back, opened the door and gave Carter an "ok" gesture:

"There is no problem with the company. The shares will be transferred to your account after the market opens. Other companies will contact you later. Before the market closes today, I guarantee that there will be 700,000 shares in your account! Are you looking at other targets? Yes.

Are you looking at the centerpiece?"

The New York Stock Exchange, or the entire U.S. stock market, implements a T2 trading system. That is to say, after buying the stock, the funds will be delivered within three working days. Only after the delivery is completed, you will hold the traded stock for two days.

It can only be sold later. Therefore, the plan for Vickers Company will definitely not be possible today.

But today, all 700,000 shares were collected in one day. This will undoubtedly greatly facilitate Carter's future operations, and it also reflects 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, even having money is not enough!

As for borrowing stocks, Carter does not need to advance capital. You can't just wait for such a few days, right? Julian felt that Carter would not be satisfied with just this transaction, so he immediately asked.

Carter, as Julian thought, finally came to New York once, how could it be enough to just make a fortune?!

"There is 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..."

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