Monday on the London Stock Exchange.
Early in the morning, a strong wind blew on the street. The cold air from the north blew away the smog that shrouded London. The sun rarely showed up. Ma Wei, who was sitting in the VIP room of the exchange waiting for the opening of trading, came to the window. , enjoying the rare sunshine.
The sunrise in London is a rare event. The name of the Fog City is by no means a waste. All washed clothes have to be dried indoors. The weather factors have driven the prosperity of the laundry industry. What happens to others? I understand, but his clothes are basically sent to the Flower Street Laundry.
"The weather is nice, it looks like today will go well."
The second prince walked to the window, squinted his eyes, put his hands behind his back, and looked at the sun in the sky.
Today is the day when Manstein's potion company goes public. In addition to their company, the potion company organized by the eldest prince and the third prince will also go public today. They are enemies on a narrow road, and the three companies just want to collide.
"I heard that the eldest prince and the third prince have prepared very strong funds." Sitting on the sofa, Stewart said with a cigar in his mouth: "I'm afraid there will be a fierce battle today."
"Well, they should buy a large amount of Manstein Potion Company's shares. We are going to invest 30% of the shares in the stock market, which is 6 million shares. If they do it, these shares will become the possession of others. It’s a thing…”
After thinking for a moment, the second prince looked at Ma Wei: "Nicholas, how many batches do you plan to divide the 6 million stocks that will be invested in the stock market today?"
"Three batches." Ma Wei replied: "The first batch is 1.5 million shares, the second batch is 2 million shares, and the third batch is 2.5 million shares. We will first release a batch to test the water and see the market conditions. After the price rises, Then the second batch of stocks will be released one after another, and after noon, when the market opens in the afternoon, the third batch will be released to finish."
It is a normal financial method to put stocks into the market in batches. Everyone understands the principle that rare things are valuable. Hungry marketing can drive up the stock price. After the stock price rises, the stocks will be released to raise funds.
"There are 800,000 shareholders on the London Stock Exchange. Today is Monday. When a new company is listed, almost 200,000 shareholders will come. The price of the initial shares cannot be set too high or too low..."
The second prince turned his attention to the financial team he hired: "Has the plan been published?"
"It's been sorted out, Your Highness."
The leader of the financial team, Giuseppe Hallewood, came over with a plan. In order to ensure that the listing process was foolproof, the second prince hired Giuseppe Hallewood’s professional team. The eldest prince and the third prince also had Similar professionals help.
"We have compiled statistics on the trading conditions of the London Stock Exchange in the past six months and found that low-priced stocks between 6 pence and 2 shillings are the most frequently traded range. Stocks with prices above 2 shillings per share will rise as the price rises. The number of transactions is on a downward trend.”
Giuseppe took the chalk and drew a sketch on the blackboard: "At the same time, the 800,000 shareholders of the London Stock Exchange, excluding medium and high-priced stocks above 2 shillings, have an average stock holding of around 20 gold pounds. , excluding their long-term holdings, there is about 16 million pounds of liquidity in low-price stocks.”
"If we set the price of the initial shares at 2 shillings per share, and then dilute the 6 million initial shares prepared to be invested in the stock market 10 times, then we can hope to attract a large number of investors to buy low-priced stocks..."
Chalk circled the lower market, and Giuseppe's meaning was already obvious: "Your Highness, I think we can't just focus on the high-end market. The profits in the low-price market are also considerable. With the funds in our hands, we can completely First capture the low-price market, and then enter the high-end market through stock appreciation, thereby ensuring maximum profits!"
"The initial shares are diluted 10 times..."
Listening to the plan proposed by Giuseppe, the second prince frowned and said, "If we do this, wouldn't Manstein Potion Company have a full 60 million shares that will be put into the market today?"
"Yes, Your Highness, in this way, when the stock price soars, we can make more money."
"Competition and risk are also greater." Next to him, Smith, who was holding champagne and ready to celebrate at any time, suddenly said: "You let us enter the low-price market competition from the beginning. Ideally, doing so can indeed gain greater profits. But have you ever thought about it, Manstein Potion Company is a new company that has not yet proven its strength to the grassroots people, and it is difficult to create too much excitement if it suddenly enters the low-price market."
"I have thought about this." Giuseppe replied: "As soon as the market opens, we can use part of the funds to quickly increase the stock price. Hesitant investors will see the price continue to soar. There will definitely be a rush to buy it.”
"Besides, when trading closes at noon, news of the soaring stock price of Manstein's Potion Company will definitely spread. By then, many investors will flood into the London Stock Exchange and spend money to buy our stocks. At that time, it will be a profit. It’s time for the big bucks.”
"Chasing the rise and killing the fall is a long-lasting habit of stock investors."
After listening to Giuseppe's explanation, the second prince nodded slowly: "The stock price of Manstein Potion Company will definitely soar. I can guarantee this, especially after the bidding is over and when the trade is officially launched, the stock price will probably rise. It has risen to an unimaginable level, but we are here to raise more funds today, and a plan that can make more money is a good plan."
"Diluting equity will increase the risk of short selling." Smith, holding champagne, reminded: "Your Highness, Mr. Giuseppe also said just now that it is the habit of investors to chase the rise and kill the fall. According to his plan, it can indeed be done at the beginning. Attracting many investors to rush to buy, but in the afternoon, if someone takes action and purchases a large number of our stocks and sells them, the stock price will inevitably start to fall. At this time, investors holding our stocks will fall into panic and rush to sell. Causing the stock price to plummet!"
"When the stock price hits the bottom, those people will buy the bottom and get the most equity at the minimum price!"
Smith spoke quickly: "Your Highness, it's not that we don't have competitors, we must be wary of others!"
The second prince's body shook slightly, and he woke up from the dream of soaring stock prices. Thinking of the eldest prince, third prince and others who were eyeing him and raising a large amount of funds, his expression immediately became serious.
Giuseppe's plan is a good one, but Smith's reminder is not just nonsense. Finance is a battlefield, and you can make money if you can predict your opponent's operations!
At the same time, you can also avoid risks!
"I don't quite agree with Mr. Smith's statement." Giuseppe rolled his eyes and said calmly: "What you just mentioned is that the enemy is maliciously shorting our stocks, but have you ever thought about it? When selling stocks, can we use acquisitions to stabilize the stock price?"
"Wouldn't this become a funding war?" Smith said angrily, "What if others prepare more funds than us?"
"Today is the first day that Manstein Potion Company went public." Giuseppe said: "Mr. Smith, we will only release shares worth 6 million pounds. In other words, the number of shares circulating in the market is limited. And Mr. Nicholas has 7.7 million gold pounds in cash, so we have absolute resistance to short-selling risks! There is no need to be afraid of enemies shorting stocks!"
"We release stocks to raise funds! Not to speculate in stocks! Don't you understand the logic?"
Smith rolled his eyes angrily: "If we buy back the stocks we gave out with money, not to mention not making a penny, but the 7.7 million gold pounds in our hands will shrink by more than half! What kind of fool can do this?" You must be a spy sent by the great prince!"
The corners of his mouth twitched slightly, and there was a flaw in Giuseppe's originally calm expression. He stared at the plan in his hand for a long time, and said angrily: "I'm sorry, it's my old habit. Let me ask again, Your Highness, your purpose." , it raised a lot of money on the day it went public, right?”
"Even if it is not the same day, we must ensure that we can make more money after listing." The second prince said: "Otherwise, what will we do if we go public?"
"If the original 7.7 million gold pounds cannot be moved and there are still enemies who want to maliciously short..."
Giuseppe looked at the plan in his hand with an embarrassed look on his face: "Your Highness, the enemy is maliciously shorting our stocks, but we can't afford to resist. In this case, we can only sit back and wait for death..."
This is what finance is like. Others use capital to crush you, and if you can't come up with capital to deal with it, you can imagine the consequences.
“They bet us, can’t we bet them?”
The second prince gently shook the wine glass, and the amber wine sparkled in the sun: "If they play this trick, we will play it too, and see who can have the last laugh."
At 9 o'clock in the morning, the London Stock Exchange opens for business. Monday is the busiest time. Investors flock into the hall, look at the prices constantly refreshing on the blackboard, take off the charcoal pens pinned to their ears, and record the prices and stock sequences. No., wondering what to buy today.
An interested person discovered that the bronze bell of the exchange was hung with a red rope today, which meant that a new stock was listed. The news spread quickly, and investors who were undecided quickly turned their attention to the opening ceremony half an hour later. , want to see what stocks are listed today.
At 9:30, the manager of the London Stock Exchange walked up to the stand where the bronze bell was hung and read out loud the names of the three stocks listed today. In addition to Manstein's Potion Company, there was also the Grand Prince's Bracken's Potion. company as well as the Third Prince's Yin Di Potion Company.
The Marquis of Bracken was the eldest prince's son, so it was normal for the potion company to be named after him, but the third prince actually named the company after his own son, which was beyond everyone's expectations.
However, this also proves that the third prince has no business talents, they are all soldiers.
clang--
clang--
clang--
As the three bells rang, the stock market officially opened, and the staff of Manstein's Potion Company's stock was written on the blackboard. The initial share price was 1 gold pound, and the first batch totaled 1.5 million shares. Neither the second prince nor Ma Wei adopted the plan of Giuseppe, a professional. Just as Smith said, the risk of diluting the stock price and competing for low prices in the market is too high. Their purpose is to raise funds. The risk is too high. Must be avoided.
As soon as the stock was listed, it did not cause much commotion. The price of 1 gold pound per share was too high, which discouraged many investors. Even the initial selling price of the eldest prince and third prince's potion company was 1 gold pound per share. This price is destined to compete in the high-end market.
Some daring investors who had heard of the names of Marquis of Bracken or Mavey and knew who were the forces behind these three potion companies quietly came to the window and spent money to buy stocks without saying anything.
The sale of small shares had little impact on the broader market. Investors who were watching suddenly discovered that the stock price of Manstein Potion Company was constantly refreshing. Every minute, a staff member would come out of the background and erase the previous price. price, write down the new number.
The refresh frequency is too high!
This situation means that a big boss is taking action and buying stocks like crazy!
Investors who realized this immediately gave up their hesitation, rushed to the buying window, and began to buy shares of Manstein Potion Company. The stock price gradually rose from the initial 1 gold pound per share to 1 gold pound. 4 shillings, 1 gold pound 6 shillings....
Chasing the rise and killing the fall, stock investors followed suit one after another. The stock price of Manstein's Potion Company rose all the way. On the other hand, the stock price of the eldest prince and the third prince's potion company rose very slowly. The stock price of Manstein's Potion Company When the price rose to 16 shillings per gold pound, they only had a pitiful 1 gold pound and 5 shillings.
The price gap has widened. In the VIP room, the second prince and others couldn't help but cheered when they saw the stock price soaring. Smith opened the champagne excitedly, the cork flew up, and the golden and clear wine splashed everywhere. , the whole room was filled with the smell of champagne.
"Nicholas!"
The second prince came over with two glasses of champagne, handed one to Ma Wei, and looked at the blackboard downstairs: "Now the stock price has risen to 2 gold pounds, which has doubled! It's time to celebrate!"
"Yes, Your Highness, it's time to celebrate."
Ma Wei took the champagne and smiled. There was no reaction on the surface, but he was already worried in his heart.
It went so well.
The smoothness is simply terrifying!
The soaring price of stocks means that someone is buying stocks aggressively. The second prince should be aware of this, but he did not say anything...
Retail investors on the exchange alone cannot fully double the stock price in a short period of time. Small transactions can indeed make the stock price rise, but that takes time. If the price skyrockets in a short period of time, someone must have spent a lot of money. , and constantly acquire stocks on the market.
In a stock exchange without electronic equipment, all transactions need to be done manually, and paper purchases take time, so you cannot buy too much at once and can only buy in batches, which takes a lot of time.
Looking at the rising stock price, Ma Wei did not express his worries because...
At this moment, Laiwen was sitting on the trading floor, carrying a large sum of cash to purchase shares of the Manstein Potion Company.
If there was only one person writing the letter, the stock price would not have risen so quickly. There must be other people buying the stock!
At 11 o'clock in the morning, after an hour and a half of opening, the share price of Manstein's Potion Company had risen to 2 pounds 14 shillings per share. The growth rate began to slow down. This price has exceeded the affordability of many retail investors, but The stock price is still rising, and for an exchange that does not have a daily limit rule, you don’t know when it will rise.
More and more investors could no longer hold back. They began to sell other stocks in their hands, collect funds, and then pursue investment in Manstein Potion Company. The London Stock Exchange was once in chaos, and the trading window was full of people. People, people waved the tickets in their hands and shouted the name of the Manstein Potion Company with such enthusiasm that it made people shiver behind their backs.
It was not until the trading halt at noon that the exchange returned to calm. Most investors left the exchange and did not know where they went.
"In the afternoon, release the second batch of stocks, a total of 2 million shares. At the current price, we can earn 6 million pounds!"
Looking at the final stock price fixed at 3 gold pounds and 1 shilling on the blackboard, the smile on the second prince's face could no longer be concealed. On the other hand, the Bracken Potions Company and Yindi Potion Company, their stock prices were only 2 gold pounds, and Man. Stein Potions Company was missing by a full third!
In one morning, 3.15 million pounds of funds were raised for the Manstein Potion Company, which was as fast as printing money!
Ma Wei knew in his heart that the soaring stock price was not the result of Manstein's Potion Company, but the behind-the-scenes manipulation of capital and the rush of investors to follow suit.
This is a complete financial farce!
There is no need to pay anything substantial, just take out the currency and invest it in the stock market to cause an uproar. What did the Manstein Potion Company do?
Did nothing.
Just use money and make money.
Without the support of actual goods, prosperity will sooner or later dissipate like the moon in a mirror. The second prince, who knew this, asked Ma Wei again: "How is the establishment of the potion factory? Is there still a shortage of manpower?"
"Yesterday, Stuer and I had a day of interviews and recruited a lot of workers. They need to be systematically trained, as well as machines. I have also placed orders with steel mills. Several steel mills are working overtime to manufacture, and it takes a month. Inside, we can definitely create an assembly line."
"That's good." The second prince nodded: "I have fulfilled my promise. The remaining potion company depends on your ability, Nicholas. If we can win the bid one month later, the stock price will still be high." It will go up, but if you can’t win it... let’s talk about it then! Today is a happy day!”
After clinking glasses, Solway Hotel brought an exquisite lunch. On the important day of listing, the Second Prince and others had no intention of leaving the exchange. They would eat, drink, and have sex here. How much money they can earn depends on today.
"I'm going to the bathroom."
After lunch, Ma Wei got up and left the VIP room, walked down the stairs, left the exchange, and saw the communication at the back door.
"Brother! This way, this way!"
The letter popped out of the corner of the wall in a sneaky way, looking for a place where no one was around.
"How are you doing there? How many shares did you buy?"
"I spent 2 million gold pounds to buy 1 million shares, equivalent to 5% of the shares..."
Hearing this number, Ma Wei frowned: "So few?"
“The price has gone up so fast, there’s no time to buy it!”
Laiwen looked around and lowered his voice and said:
"Someone like me is buying our company's shares! Guess who I saw?"
"who?"
"Freya!"
