From the prototype, immortal - Chapter 1366
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- Chapter 1366 - Ten times leverage shorting Stark Industries
With the introduction of new energy technology, Stark Industries will usher in an unprecedented turning point.
This not only means that the company will get rid of its difficulties and regain its vitality, but also indicates that Chang Wei’s equity will rapidly increase in value, bringing immeasurable benefits.
For any investor, a return of dozens or even hundreds of times is a dream feast of wealth.
This is not just a simple investment game, but also a business legend that can be recorded in history, enough to become a classic case in business school textbooks for future generations to learn and refer to.
In the aftermath of applause, Tony showed a satisfied smile on his face.
He knew that his words had touched the hearts of these shareholders and made them see the broad prospects and huge potential of new energy technology.
Next, it is to have in-depth communication and negotiations with partners such as the Rockefeller family.
Only by establishing a solid cooperative relationship can the smooth promotion and application of arc reactors be ensured.
Of course, this is also related to Tony being a military-industrial complex and a big capitalist. Otherwise, if it were someone else, they would not be able to take this step at all. They would be directly “mud trucks” by old energy giants such as Rockefeller, and then the property rights of new energy would be taken away.
Tony looked at Chang Wei at this time.
Perhaps, cooperating with Ares Industries would be a good choice.
Ares Industries has obviously crushed Osborn Industries and Hammer Industries. More importantly, with Stark Industries closing its weapons department and completely abandoning its military business, there is no direct conflict of interest between the two companies.
If Stark Industries can join hands with Ares Industries, it will undoubtedly form a powerful force that is enough to fight against old energy giants such as Rockefeller.
Tony is not so naive to think that old energy giants such as Rockefeller will compromise obediently.
The competition with old energy giants is by no means easy.
These chaebol families that have been passed down for generations have deep roots and huge power. It is not a one-day job to easily subdue or win them over.
They will not easily give up their vested interests in the old energy field, nor will they easily accept the challenge of new energy technology.
Tony understands that these plans will inevitably encounter many obstacles in the implementation process, including attention and pressure from the international community.
Especially everything said today is just verbal and written, they have not signed any agreement.
But what Tony doesn’t know is.
Chang Wei has shorted Stark Industries before. Shorting, in simple terms, is to predict that the price of a certain stock will fall, so first borrow the stock and sell it, and then buy it back after the stock price falls, and earn the difference.
Stark Industries’ weapons department is an important source of its income. Once the department is closed, it will inevitably cause a strong reaction in the market, and the stock price is bound to fall sharply.
Based on this judgment, Chang Wei began a bold and sophisticated layout.
He used his influence in the financial world to borrow Stark Industries stocks worth up to 150 billion US dollars from a number of internationally renowned financial institutions. The borrowing period of these stocks was carefully set to one month to match his expected market volatility cycle.
This move caused quite a stir in the financial world, because generally speaking, financial institutions will consider factors such as the borrower’s credit rating, asset size, and market liquidity of the borrowed stock when providing stock loans.
With Stark Industries’ market value of $200 billion, although it is theoretically possible to borrow stocks close to half of the market value, in reality, this requires Chang Wei to have a very high credit rating and strong asset endorsement, as well as the trust of financial institutions in his market judgment.
Therefore, Chang Wei’s ability to successfully borrow such a large amount of stocks undoubtedly demonstrates his deep foundation and extensive connections in the financial market.
After all, he is the founder and president of Ares Industries, and no one would doubt his foundation and connections.
Next, Chang Wei adopted a more aggressive financial leverage strategy, magnifying the loan amount by nearly ten times, which means that he actually controls assets worth more than $1.5 trillion for trading.
This operation is extremely risky, but the potential benefits are equally amazing.
In the next month, Chang Wei closely monitored every development of Stark Industries and the market’s reaction to Tony’s transformation plan.
Finally, the decisive day came.
As Tony Stark announced the decision to close the weapons department in public, the stock price of Stark Industries began to fall sharply as Chang Wei expected.
This news was like a heavy bomb that instantly detonated the stock market.
In just a few days, the market value evaporated by more than $100 billion, and the stock price fell by more than 50%.
Countless investors suffered heavy losses.
At this moment, Chang Wei knew that his opportunity had come.
He acted quickly and used a high-leverage strategy to sell a large number of Stark Industrial stocks in his hands when the stock price was high, and at the same time, when the stock price reached the lowest point, he bought a large number of stocks at a low price to cover them.
Between buying and selling, Chang Wei successfully earned a huge difference in profit.
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Because he used high leverage, even if he paid high interest fees, his net profit was still amazing.
According to statistics, Chang Wei earned a total of more than $80 billion in net profit in this transaction by selling at high prices and buying at low prices.
This figure is almost several times his initial investment capital.
However, high returns are often accompanied by high risks.
Although Chang Wei won a great victory in this financial game, he also paid a huge amount of interest for it.
Because he used high leverage, these interest expenses accounted for a considerable part of his total profit.
At the same time, Tony Stark was busy dealing with the chaos within the company.
With the closure of the weapons department, a large number of employees are at risk of unemployment, and the company’s business structure is in urgent need of adjustment.
More importantly, Tony needs to find new growth points to make up for the income gap caused by the closure of the weapons department.
This series of problems made Tony overwhelmed, and he had no time and energy to pay attention to the fluctuations in the stock market and Chang Wei’s conspiracy.
It was not until a month later, when the stock price of Stark Industries gradually stabilized, that Tony had the opportunity to calm down and examine the storm.
He was surprised to find that his company’s market value had evaporated by more than $100 billion in just one month, and all this happened after he announced the closure of the weapons department.
Tony began to wonder if someone was manipulating the market behind the scenes and deliberately suppressing the stock price of Stark Industries.
But nothing was found.
It is even more impossible to find out now. Chang Wei enjoys this kind of game and naturally will not let Tony know that he did it.