232 Chapter 232 - I'm Out of Money Again (2)

"Boss, I have to say this is a crazy idea."

At this moment, Yang Cheng was sitting on the balcony, with her legs resting on the wrought iron railing, her eyes slightly squinted, enjoying the autumn sunshine lazily and relaxedly. Khan's excited voice.

Yang Cheng held a bag of yam tablets in his hand, and smiled while eating, "Ryze, I am also forced to do nothing, but if I have 1 billion US dollars in cash in my hand, I will not take risks."

"Net Boss, Fidelity Fund and Bailey Ford Capital will go crazy." Ruiz said jokingly.

The two fund management companies mentioned by Ruiz are Tesla's second and third largest shareholders. If Yang Cheng shorts Tesla, he will definitely be regarded as a thorn in the side of these two companies. After all, he is stealing money from other people's pockets.

However, Yang Cheng just wants to earn some pocket money. He is only going to use 1 billion US dollars plus 2 times the leverage. They won't be as knowledgeable as Yang Cheng for the benefit of hundreds of millions of dollars, not to mention that they will earn a lot if the stock price rises in the future.

"Aren't we holding a batch of broilers? Don't be reluctant, use what you need, give up when you need to give up, and make up for you after making money." Yang Cheng said to the direction of the phone with a smile like a spring breeze.

"Boss, I can only guarantee that we will do our best to cover our tracks, but you also know the risk of shorting." Ruiz put away the joke and reminded in a serious tone.

Of course Yang Cheng understands the danger of short selling. Even if Ruiz doesn't remind him, he himself will be very careful when mentioning it, because short selling is a "loss without bottom line".

Everyone investing in the stock market or futures is undoubtedly to make money. From the perspective of making money, how much do you think the highest price of a stock bought for 30 yuan can rise? No one knows!

The old stock god Warren Buffett bought Berkshire for only $8 per share in 1963, but now it exceeds $160,000 per share. It can be said that the upside is unlimited; but the corresponding downside is limited.

As a shareholder of a company, since the day when limited liability companies and joint-stock companies appeared, you only need to bear limited liability for the assets you invested. Lose all "book value".

The risk of shorting is infinitely magnified. Since stocks have unlimited upside and limited downside, and the last link of shorting is to buy and cover according to the current transaction price, then the profit space is limited and the loss space is unlimited.

Some people may think that as long as I am sure that this company is not good, I will keep holding short positions and I will get it. I have the optimistic idea that sooner or later I will "hold the cloud and see the moon"-when will it fall? cover.

There is nothing wrong with this idea in theory, but in practice you need to ensure two prerequisites: 1. Someone is always willing to lend you stocks; 2. You have an unlimited margin.

Anyone with a little financial knowledge knows that the premise of short selling is that someone is willing to lend the stock first. Of course, this is not a free loan. You need to pay interest. The short side' bargaining between supply and demand.

For example, when the stock price of Youku, a video website in country Z, exceeded US$60 a few years ago, the annualized interest rate of borrowing shares and shorting reached 60%!

And after the shareholder lends you the stock, the initiative to cover the position cannot be said to be completely in your hands, because the things are still others’, and they can also sell them. The broker will call you to close the position.

It can be said that in a market with inactive trading, if you cannot switch the borrowing counterparty in time, then you must buy immediately. Because of the counterparty's choice, the position is forced to close.

Maybe people often hear "short squeeze, short squeeze" and other seemingly "tall" words in financial magazines or financial news. When the bulls want to sell their stocks, no one lends the stocks to the shorts, and the shorts are forced to close their positions, which in turn pushes up the stock price further.

Specific to the Tesla stock, Tesla has a total share capital of about 120 million. Excluding the 4,000-odd shares held internally, of the 7,000-odd shares in circulation, institutions will account for a quarter of the shares. Three, there are about 5,000 shares, and only 2,000 shares can really be circulated in the open market.

For institutional investors, the shares they hold will not be easily moved, that is to say, there is only more than 2,000 shares available for operation in the four-dimensional space. Downside, all problems are not a problem, as I said before, just wait, but once there is a situation where the tradable shares cannot reach the short position, 4D Space will not be able to buy stocks to cover the position, so a 'short squeeze' will occur.

"Well, try your best, but it's hard not to leave a trace of the flow of such a large amount of 1 billion US dollars. I will call my grandfather. The money has been passed through East West Bank's account several times. Don't you If you are afraid of trouble, you can share one more account." Yang Cheng pondered for a moment and instructed.

"No problem, you are the boss, oh yes, I forgot to say congratulations, how does England's sweetheart taste? Boss?" Ruiz agreed with a firm tone.

What the hell? Such a sentence came out of nowhere.

"What did you say?"

"Eh~boss, you don't know yet? All the gossip entertainment websites are going crazy. Your relationship with Miss Emma Watson was exposed, and you went to Stamford Bridge to watch the ball game together." Ruiz froze for a moment, faltering explained.

Yang Cheng cursed in a low voice, "fuck, I haven't even kissed her mouth, where's the relationship?"

"Then~ Shall Toutiao come forward to help you clarify for the boss?" Hearing Yang Cheng's seriousness, Ruiz didn't dare to continue joking, and suggested instead.

Yang Cheng put down his legs, rubbed his scalp, and said unhappily, "Forget it, let them go, maybe I will implement this news at some point."

"Okay, boss, I support you mentally." Ryze was no stranger to the boss's womanish piss.

"Don't talk nonsense, hurry up and earn money for me. I heard you're going to buy a house? Get this done, and you'll get the bonus. Whether you live in the Upper East Side or Brooklyn depends on your choice." Yang Cheng He laughed and cursed angrily, and said aggressively.

"Just wait for my good news, boss, yes, and my check." Ruiz's joke also confirmed his confidence from the side.

Yang Cheng shrugged, and boldly agreed, "The check is waiting for you at any time."

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