Chapter 1059: Short Selling and Long Selling (2)
Of course Wang Deqing knew who Zeng Wangcai was. The fact that he could lead a team to make money meant that he had an extraordinary identity.
But he couldn't imagine that Zeng Wangcai, a man who had a very high status in the eyes of the top management, a guy with countless industries and money, actually didn't know what short selling and long selling were.
The most important thing is that this kind of person actually acted as the mastermind on Wall Street a few days ago, setting off a stock market boom.
Wang Deqing patiently explained the definitions of the two concepts to Zeng Wangcai: "In fact, there is no trick to the stock market, and ordinary people are certainly not involved in it, but when the funds reach a certain level, it is normal to manipulate the stock market.
"The manipulation I'm talking about is not violating regulations, but taking advantage of the characteristics and rules of the stock market to manipulate. Short selling and long selling are common tactics used by the Americans. It's not an exaggeration to say that it's an open conspiracy."
After Zeng Wangcai listened to it, he had no problem with the concept.
He really didn't understand the operation before: "So, Monica won't play dirty, and all operations are aboveboard? More than money, right?"
"You can understand it that way, but you can't say it completely." Wang Deqing explained again, "I don't know if they have any conspiracy, but I can judge by typing that they will first copy the stock price, which is the so-called long position. When they have enough shares, they will sell a large number of them to make the stock price fall, and then buy the bottom again, and repeat the cycle."
Zeng Wangcai understood what short selling and long selling are, it’s just buying low and selling high.
"Then here comes the question!" Zeng Wangcai asked, "Are there so many stocks on the market for them to buy? Ordinary people are also scrambling for them."
After all, Zeng Wangcai still cares about the leeks, and is a little worried that the leeks will be cut in the fight between the two sides.
It's your own chives, so you should be the one to harvest them, right? It's not someone else's turn to do it.
"You can rest assured. Ordinary people have limited resources and cannot compete with them." Wang Deqing was very confident. "Our stock market has just started. The current stocks are equivalent to original shares. They are all sold directly from the company and the quantity is large."
"That's right. Now we are equivalent to three-year-old children, holding gold in our hands, which is very tempting." Zeng Wangcai made an analogy.
"That's a very appropriate analogy." Wang Deqing nodded. "Except for the companies you listed, the other companies are like three-year-old children, unable to protect themselves. The money they earn from selling their stocks after listing cannot be used to fight against the Americans manipulating stock prices. So after a few rounds of back and forth, these companies will be eaten up without leaving anything. I wonder, who the hell decided to list so many companies at once?"
Wang Deqing was not in the country and was not aware of the whole story. He had no idea that the person who made the decision was right in front of him.
Wu Yao looked at Zeng Wangcai awkwardly without explaining.
Zeng Wangcai didn't care what Wang Deqing said. On the contrary, he admired Wang Deqing for daring to point out the word "snap guess".
You have to know that people who work in the system know the rules to some extent, and understand that the person who can make this decision will not have a low status, but Wang Deqing still complained according to his heart, proving that there is nothing wrong with him.
What Zeng Wangcai did was not a normal operation, so Wang Deqing’s complaints were not wrong.
"It's already like this, let's not talk about the reasons." Zeng Wangcai said cheekily, "I just want to ask, since Monica has revealed her cards, how should we respond? The Americans are long now, so should we be short?"
"Ah, this..." Wang Deqing opened his mouth in confusion. Zeng Wangcai's question was just an elementary school student's question to him.
These aren't even elementary school students' problems, so this isn't a challenge.
"If they don't go long, we have to go short." Wang Deqing said with a headache, "Our goal is to prevent them from making a profit. They buy stocks and drive up the stock price. When they sell, we have to find a way to stabilize the price and not let it fall, so as not to give them the opportunity to buy at the bottom."
"You're not suggesting that we buy at a high price, are you?" Zeng Wangcai squinted his eyes, "Isn't that stupid? We can't do this kind of business that will lose money."
What Zeng Wangcai said is a little bit higher level than the previous question, but just a little bit, not much. The current takeover is a means of maintaining stability.
"Who says I have to be the buyer?" Wang Deqing covered his face. "That's just one of the methods. I use it when I have no other choice. There are other methods, such as favorable policy news, major research and development progress of the company, etc., which may increase the stock price."
Then there was a heated discussion about how to deal with the Americans.
Zeng Wangcai has a wild and imaginative mind, but he doesn't know much about the stock market, and every time he speaks, he makes Wang Deqing confused.
After the market closed in the afternoon, there was still no good result.
After the afternoon market opened, Monica's funds continued to focus on those seven stocks, trying her best to clear out all the stocks on the market.
As Wang Deqing said, at this time it is impossible for ordinary people to compete with Monica.
"It's reached its daily limit!" Wang Deqing stared at the market and said, "They should have completed their task for today. There won't be any further action. They should start preparing for tomorrow."
"There are still a few hours left!" Zeng Wangcai checked the time. "Won't they pick other stocks before taking action?"
"I guess not!" Wang Deqing shook his head. "They are not fighting on their home turf. There are too many uncertainties. In the early stages, we should focus on testing and seeing how we react."
As expected, what Wang Deqing said came true again. Until the closing time, Monica did not make any move.
Zeng Wangcai and his friends did not disperse. They went to the restaurant to eat, and then went upstairs to continue.
They moved to a smoky room, and the conversation continued with the three elementary school students on one side, Wu Yao and Wang Deqing on the other, and Zeng Wangcai and Zhang Xiuzhi on the other.
After taking the course, Zeng Wangcai became more and more familiar with it. He was always clear about the results he wanted, but he just couldn't figure out how to operate it.
After the meeting, Zeng Wangcai raised a crucial question: "Professor Wang, what will the Americans do if the stocks they are eyeing never reach their peak?"
"No peak? That's impossible!" Wang Deqing shook his head. "No matter how good our market is, this won't happen. Prices will definitely peak and fall back. There are no stocks that keep rising."
"That's what I said, but what if I keep selling?" Zeng Wangcai continued to ask, "For example, if I can't sell all the stocks of Hazhou, will the stock price continue to rise?"
The Harbin Axle that Zeng Wangcai mentioned is a large state-owned enterprise in Erbin. It is now facing many difficulties and will be a major player in the wave of layoffs in the future.
Many of these listed companies have backgrounds similar to Harbin Axle.
"How can there be so many stocks? Do you think the stocks are unlimited?" Wang Deqing said unhappily, "The stocks issued by the company are limited. The number of shares you hold determines the number of shares you use to issue financing. If you have more, you will have to pay out your original capital."
"It's good to pay out the original capital! Or if there are not enough stocks, we can just continue to issue them."
???
Do you think your home is the Heaven and Earth Bank?