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Shortly after the bank was established, at the instruction of Qin Mu, Xu Yingjie recruited some professional talents to specialize in financial research.
In the future world, if you control food, you control everyone; if you control currency, you control the whole world.
Qin Mu would naturally not relax his research on the financial industry. The department in the bank that specializes in financial research has gathered many elite talents in the financial industry of this era. For example, matters such as how to control the finances of Japan and North Korea are all planned by these people, and the implementation details and steps are formulated.
Now they are studying the feasibility of controlling European finance. Qin Mu is quite satisfied with this.
When it came to launching stocks, he had a higher degree of foresight than anyone else of that era, and knew a lot of dark secrets that most people didn't know when stocks were still in their infancy.
Qin Mu felt that manipulating European finance through the stock market, or using this method to plunder Western financial markets, or simply destroying the economy, was a very good option.
Qin Mu wanted to establish the Daqin stock exchange as soon as possible, and hoped that this move would drive the scale and openness of Western stock trading as soon as possible. Only in this way would he have the opportunity to make huge money in the European financial scene.
The most positive and original purpose of the emergence of the stock market is to provide companies with a financing platform and to share risks.
However, as Marx said, if there is a 10% profit, capital will be guaranteed to be used everywhere; with a 20% profit, capital will become active; with a 50% profit, capital will take risks; for 100% profit, capital will dare to trample on all human laws; with a profit of more than 300%, capital will dare to commit any crime, even at the risk of being hanged.
Driven by huge profits, the two most positive elements of the stock market: financing and risk sharing, are often exploited. Financing has become a crazy capital plunder, and risk sharing has become a naked risk transfer.
Some people will create some very tempting bubbles that look like golden eggs, and then hold a handful of stocks and shout: Come on, this is a golden egg, which can lay chickens, chickens lay eggs, and the eggs will never stop... When investors can't resist the temptation and throw money into it crazily, the bubble bursts, and underneath the bubble is a black hole with no bottom...
For those companies with better profitability, if they need to issue additional shares for strategic development, then these can generally be regarded as real golden eggs.
However, such companies usually have the majority of shares in the hands of key managers, who are usually not allowed to buy or sell their own shares within a certain period of time. Only a small number of them raise funds from the public by issuing stocks.
To put it bluntly, this so-called golden egg is someone else using your money to make their own money; and you bear the risk of others. As for dividends, ha, that requires a shareholders' meeting to decide whether to distribute or not, and how much to distribute. Do you know that using the company's money to sell at a low price and buy at a high price to transfer funds
To describe it in a more vivid way, the stock market is probably like some golden eggs and many colorful bubbles placed together. The golden eggs are real, but they are very heavy and you can't move them. The bubbles are not pits, but black holes.
Newton's genius mind could calculate the trajectory of celestial bodies, but it was powerless against black holes that swallowed everything!
From a certain perspective, the stock market is really like a financial black hole that swallows up the dreams of countless people. A genius like Newton was turned into an idiot after entering the stock market.
Newton, a crazy stock investor and genius, lost all his money within less than a year in the market.
It was like he had worked for the Royal Mint of England for 10 years for nothing, and he had to starve himself to death to save up the money he lost. He was even worse off than Yang Bailao.
From this point of view, Qin Mu is very clear that stocks are a double-edged sword. If legislation is not taken in advance to prevent it, it can easily lead to catastrophic consequences.
In particular, economic bubbles will form quickly. Once the bubbles burst, the economy will regress, production will stagnate, and society will be depressed...
Therefore, Xu Yongshun's expectation of a stock exchange being established quickly to allow factories and trading companies to issue stocks is unlikely. It will take at least half a year, but at most a year. Qin Mu doesn't want to delay this matter any longer. He also wants to raise money in Europe, right
Xu Yongshun said in a somewhat stubborn tone, "Your Majesty, it is better to do some pilot projects first, especially in the operation of the stock market. There is no precedent and no experience to learn from. I think it is better to allow some factories and trading companies with good performance to issue stocks first; this is all a pilot project.
If there are any problems, we can see them more clearly through actual pilot projects. As long as the number of factories or trading companies issuing stocks in the first batch is not large, the impact of problems will not be significant. This is better than groping in the dark without any basis at the moment. "
Obviously, the first batch of factories and trading companies that are listed will benefit first. People like Xu Yongshun have always been the representatives of the "capital class" that Qin Mu has focused on supporting. Their chances of being allowed to issue stocks first are undoubtedly the greatest, which is why he is so enthusiastic.
But objectively speaking, Xu Yongshun's words are not without reason. It is questionable whether Qin Mu's knowledge about the stock market from later generations is in line with the current economic model.
In later times, there was a lot of hot money in the stock market, but it could not flow into the real economy, forming a distorted phenomenon: the stock market was hot, but the real economy was in a severe winter. Enterprises wanted to develop, but could not raise the funds they needed for development. The hot money in the stock market was unpredictable, but it had nothing to do with the real economy.
Originally, the stock market was created to provide a platform for the real economy to raise funds for development. Given the current economic model and the speed of information exchange, even if there is hot money, it is unlikely to be as volatile as it was in later times. The financial manipulation techniques used by people today are far from reaching the level of the later times.
In other words, some future laws and regulations may not necessarily be suitable for the current economic model and stock market, so it is still necessary to conduct some pilot projects first.
Xu Yingjie also said: "Your Majesty, I agree to do some pilot projects first, temporarily select ten or eight factories and trading companies, allow them to issue stocks, and trade freely on the stock exchange, observe first to see what risks there are, and then improve the corresponding regulations.
What needs to be done now is to conduct necessary financial audits and supervision on these selected factories and trading companies, and formulate some temporary punishment measures for violations.”
"Yes." Qin Mu nodded and said, "This matter can be considered."
Xu Yongshun was secretly delighted and said with a smile: "This... Your Majesty..."
"What is this, what is that?"
"Your Majesty, you see, the Ocean Trading Company has excellent performance and is a joint-stock trading company. Longjiang Shipyard is also one of the best shipyards in Daqin, with a wealth of talents and strong technology. They are all very suitable for listing.
I believe that the people will be optimistic about these factories and trading companies. Buying the stocks of these enterprises will have low risks and easy profits, which will play a good supporting role in the newly established stock market.
Your Majesty, as the saying goes, a good start is an important guarantee for success. If Daqin's stock market is to get on the right track and prosper quickly, the companies selected for the pilot project must naturally be the best.
The two companies I mentioned are ranked first in the same industry in the whole of Daqin. For example, the orders for Longjiang Shipyard have been scheduled for two years, and they are in urgent need of funds to expand their scale.
In addition, the research and development of technologies such as the iron kettle ship has also entered the final bottleneck stage, and a large amount of research and development funds are also needed. Your Majesty, you know all this, and I dare not say a word of falsehood. "
The so-called ocean-going trading company was an ocean-going trading company that Qin Mu asked Xu Yongshun to organize in order to open up the East-West trade routes that were blocked by the war.
In addition to trade with Japan, Korea, and Southeast Asia, the main East-West trade is conducted with Portugal and the British East India Company. This ocean-going trading company now has as many as 232 merchant ships, and its development speed is astonishing.
The trade routes have been opened up to the west coast of Africa, the Red Sea, the Persian Gulf, etc. Among them, Qin Mu, in the name of Yun Qiaoer, holds 31% of the shares, which is considered the largest shareholder.
Xu Yongshun, Liu Changzuo and others each held varying amounts of shares. In addition, military generals such as Liu Meng and Meng Ke also held some shares.
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ps: To be honest, I am a person who cannot manage even 100 yuan. It is very hard and very cautious to write about the financial and stock related aspects. If there is anything inappropriate, you are welcome to point it out. Experts can express their own insights in the book review area, and we can exchange ideas together.
There are still a few days until the end of the month. In previous years, starting from the 29th, the monthly tickets are doubled. Well, today I will ask for some subscriptions and recommendation tickets. (To be continued...)
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