a bolt from the blue!
In an instant, Jin Yao felt dizzy and her faith collapsed.
"How is that possible?" She couldn't believe it. "The company is operating normally and will only get better and better in the future. What reason is there to cheat?!"
When people get excited, they can't help but lose control of the volume.
Xiao Tao heard this and replied with a pale face, "I saw on the Internet that our company established a new project last year. The investment was high and the output was low. We lost a lot of money and lowered the company's profits."
"It was qualified in the first two years, but it fell short in the third year. So if we follow the normal process to go public, we have to wait another three years."
"The people at the accounting firm assured us that it was easy to falsify the accounts and no one would find out. The leader thought the data was not too different and only needed to be slightly modified, so he agreed..."
Jin Yao's expression changed for a long time, and then she said, "The profit will not meet the target if there is an unexpected accident in the third year. It shouldn't be a big deal."
This sounds like speculation, but also like a question.
"I don't know." Xiao Tao hung his head and sighed, "I hope everything will be fine."
She spent all her 50,000 yuan of assets on company stocks!
If things get out of hand and can't be resolved, all the hard work in the few years before graduation will be in vain.
"The regulatory authorities said they would impose severe punishment, and they would probably impose a fine in the end?" Jin Yao was not sure whether she was trying to convince herself or Xiao Tao, "The fraud was discovered too late, and the company had already gone public, so the regulatory authorities couldn't cancel its qualifications even if they wanted to."
Xiao Tao glanced at her comrade-in-arms who shared the same pain, knowing that he hoped she would agree with him. But she herself had no idea what would happen next, so how could she comfort others?
She lowered her eyes in deep thought, saying nothing, and no one knew what she was thinking about.
"Fine it and apologize to the public, and everything should be fine." The more Jin Yao thought about it, the more she felt that her analysis made sense.
Sister Yang hesitated to speak.
She had warned before, “If anything really happens, you must take decisive action.
The first two years were qualified, but the third year was a little short of the mark - this is called "not meeting the standards."
The leader thought the data was not too different and just needed to be slightly modified - this is called "financial fraud."
It's like getting 59 points and 60 points on an exam, one passes and the other fails, there's a huge difference.
As for the claim that the company has already been listed and the regulatory authorities cannot cancel its qualifications, that is even more ridiculous - if the listing qualifications cannot be cancelled, they can apply for delisting!!
When substandard products enter the market illegally, they must of course be screened out as quickly as possible to restore market order and give investors peace of mind.
"Anyway, you've made enough money, so just sell them all when the stocks resume trading," Sister Yang advised.
Jin Yao said, "Although the company has had problems, I believe this is only temporary and will not affect long-term development. If you want to sell it, you can do it. I won't."
Sister Yang wondered what kind of drug the company had given her? Why was she so devoted to the company and refused to listen to advice? Her attitude was so firm that it seemed as if she wanted to live and die with the company.
Why bother?
After cashing out your stocks, if you change your job and live a good life, won’t you?
Sister Yang sighed inwardly and stopped trying to persuade him.
**
Jin Yao believes that the actual financial statements are not far from the standard line, so the situation is not serious. The problem is that others do not think so.
After the investigation was completed and the company's stock resumed trading, countless investors rushed out, eager to escape.
The stock price hit the limit down, the limit down, the limit down...it kept plummeting.
Because there are very few people willing to buy, large orders cannot be sold at the limit price. Investors can only watch their accounts shrink without being able to do anything.
I got up in the middle of the night and placed a sell order, but there was no transaction and the price fell to the limit down.
I placed a sell order early in the morning, but it was not executed and the price hit the limit down.
The exchange just opened, and a sell order was placed, but no transaction was made and the price fell to the limit.
…
No matter what they do, they can’t sell their stocks. Investors are going crazy!
Countless people rushed to the website of xx Technology Company and insulted the online customer service.
At this time, the stock price has fallen from 170 to 70. In two days, it may be even lower.
Jin Yao finally couldn't sit still any longer. Like everyone else, she started placing orders to sell stocks early in the morning.
But there are very few people willing to take over.
Everyone knows that xx Technology is a problematic company and may be delisted in the future, so no one wants to buy its shares.
As a result, the company's stock price started to free fall, plummeting downwards.
Two weeks passed, the price dropped from 70 to 25, and investors still couldn't sell.
A sense of despair is spreading.
Jin Yao's eyes went dark and she almost suspected that she was dreaming.
A month ago, the stock price was 170, 50,000 shares were held, and the account balance was 8.5 million.
One month later, the stock price was 25, and I held 50,000 shares, with an account balance of 1.25 million. This is too much of a difference!
What’s even more frightening is that the decline has not stopped and I don’t know how low it will fall.
Jin Yao suddenly thought of the man in a suit she had met before, "Hurry up and sell the company's stocks, otherwise you will go bankrupt sooner or later."
"If you use all your savings to buy company stocks, once the company runs into problems, not only will you lose your job, but your savings will also be wasted."
"Diversify your investments, buy houses, buy government bonds, buy insurance. Even if something happens in the future, the host only needs to change jobs."
"Remember, this is your last chance."
…
Now that I am at the end of my rope, I realize that what it said was actually true.
Thinking of this, Jin Yao pulled off the amulet from around her neck and threw it into the trash can. At the same time, she lowered her voice and asked in a low voice, "Hey, are you still there?"
She had never been so eager to see each other as she was at this moment.
Yun Luo: “Not here.”
Jin Yao, "..."
She knew that the villain was expressing his dissatisfaction with her, and she couldn't help looking embarrassed.
Who would have thought that what this guy said was true?
She thought it was a voodoo doll or something like that…
"I'm sorry." Jin Yao lowered her posture and apologized, "I was wrong. I shouldn't have distrusted you."
Yun Luo: “Heh.”
Seeing that the system refused to cooperate and insisted on going on strike, Jin Yao had to defend herself, "It's a good company, and it's where I work every day. Employees' salaries are never delayed. How could I have known that the leadership would be so desperate as to falsify the listing? It's clearly been operating step by step, and it will be able to be listed legally and compliantly in a few years."
Yun Luo said nothing.
Jin Yao continued, "In your opinion, I may be stubborn and refuse to listen to advice many times. But from my point of view, I think I made the right choice."
"If a random villain comes to me and tells me that I'm going to go bankrupt and that I can only stay safe by doing what she says, would you believe it if it were you?"
What if the other party set a trap and deliberately tricked her?
Jin Yao was fully convinced that her words were very convincing and should be able to impress the other party, but Yun Luo was not fooled at all. "Whether you want to believe it or not, you can listen to me and then make a decision. But from beginning to end, you didn't give me a chance to communicate at all."
"If you have basic financial knowledge, you will understand the importance of diversification. You will also understand that whether it is me or Sister Yang, the advice we give you is reasonable."
"If you don't listen, don't learn, don't understand, and don't believe, even gods can't save you."
Hearing this, the last trace of color on Jin Yao's face faded.
"Is there really no other way?" She pursed her lips. "As long as I can sell the stocks, I can make less money. At least I won't lose money."
"The problem is that it can't be sold." Yun Luo ruthlessly revealed the truth.
"Stock transactions can only be concluded if there are buyers and sellers. Currently, there are many sellers but few buyers, so the equity transfer cannot be completed."
"In addition, after placing a sell order, the system sorts all orders in the order in which they are received. Generally speaking, institutions have dedicated seats and will be the first to be traded."
“That is to say, even if someone buys, the first to be transferred will be the shares held by institutions. As for you, you don’t know when it will be your turn.”
Jin Yao felt as if she was falling into an icy cave. She opened and closed her mouth, and finally her thousands of words turned into one sentence, "...What if I can't sell it?"
Yun Luo: "It fell below the issue price and the employee purchase price. The investment failed and we suffered losses."
Yun Luo: "When you buy shares as an employee, you invest 200,000 yuan. 80,000 yuan is your own savings, and the other 120,000 yuan is borrowed from your parents."
Yun Luo: "After the loss, if I return the 120,000 to my parents, I will probably have nothing left in the end."
Jin Yao was hit so hard that she could hardly stand.
She never thought that she would end up like this.
With millions of assets right in front of him, he suddenly fell from the clouds to the bottom of the valley without paying attention.
What did she do wrong? Why did she have to endure such pain!
Jin Yao's eyes were slightly red and she looked quite pitiful.
Yun Luo had no intention of comforting her. She just sat there and watched quietly, like a lifeless doll.
Who can be blamed?
Sister Yang had advised her before, and she had also advised her before, but there was nothing she could do if she didn't listen.
If she was a stranger, whose origin was unknown and untrustworthy, then what about Sister Yang? When she shared the idea of diversified investment, the host not only did not take it as a warning, but also secretly laughed at her.
Your kindness was treated as an insult, and now you are getting retribution, aren't you?
“If you have some knowledge of economics, you should take out the principal first. Then no matter what happens later, you won’t be too passive.” Yun Luo added.
Borrowing money, full position, limit down, unable to sell, no situation can be worse than now.
"What you said may not be right!" Jin Yao was unwilling to believe it and retorted loudly.
It was as if she had a loud voice, she was right, and if she could win the argument against the system, she wouldn't lose money.
Yun Luo: "Reality will prove to you that I am right."
After saying that, the man in the suit disappeared.
**
"It's nonsense, all nonsense! I won't be so unlucky..." Jin Yao tried hard to comfort herself.
However, in the following week, the stock price continued to hit the daily limit every day, with no sign of stopping.
The account funds shrank by 10% every day, which is an astonishing change.
Jin Yao felt heartbroken and desperate, not knowing what to do.
It never rains but it pours.
At this critical juncture, xx Technology issued a risk warning, saying that the investment in the new project far exceeded expectations, and the company's cash flow was not working well, so it needed to borrow funds.
The current operating situation may deteriorate, and investors should be aware of the risks when purchasing the company's stocks.
As soon as the announcement came out, there were more sell orders and fewer takers.
No matter if it meant cutting off flesh or legs, all shareholders fled desperately at all costs.
Jin Yao placed orders every day, but couldn't sell them. Seeing the stock price falling day by day and the account balance getting smaller and smaller, she became anxious and angry, and couldn't help but curse, "Wouldn't it be fine if I borrowed money? You're selling stocks worth 170 yuan for 10 yuan. Are you crazy?"
"In fact, it is relatively easy for listed companies to borrow funds." Sister Yang spoke slowly.
Jin Yao needed comfort urgently, and asked hurriedly, "How do I borrow it?"
Sister Yang explained, "If you are not a listed company, you can only rely on banks for loans. Not only are the loans slow, but the review is also very strict, so small and medium-sized enterprises may not be able to get loans."
"After a company goes public, if it wants to obtain funds, it can issue corporate bonds or mortgage its shares to a bank."
"This way, there are many more financing channels and the interest rates are not high."
Jin Yao pondered, "The company is currently facing difficulties, so the stock price has fallen sharply. If we can overcome the difficulties smoothly, will the stock price rise in the future?"
"The problem is," Sister Yang said slowly, "we are not an ordinary company that relies on fraud to go public. Other listed companies can enjoy the benefits that our company may not be able to enjoy."
A basin of cold water was poured down.
Jin Yao's hands and feet were cold and she couldn't speak for a long time.
The author has something to say:
Some companies look great and are actually really great, such as Tencent/Alibaba.
Some companies look great but are actually scams, such as LeTV/Baofeng Video.
It’s hard to tell when the wind blows, and even the boasting sounds like the real thing.
But time will tell the value of the company. Whether it will last for a hundred years or become obsolete soon will be clear in a few years.
**
Author's Science
At his peak, Bill Gates owned nearly 50% of Microsoft's shares.
Starting in 1993, he began to plan to sell off Microsoft shares and diversify his investments.
He hired a team and started an investment company to manage his wealth.
Since 1995, the Gates Foundation has had an 11% return on investment, one percentage point higher than the S&P 500.
Assets under his name include stocks, bonds, foreign exchange, commodities, real estate, etc.
If Bill Gates had not sold his Microsoft shares, his assets would now be over $300 billion.
After selling and diversifying the investments, the principal plus the profits amounted to about 150 billion US dollars.
It seems that Bill Gates suffered a great loss, but in fact this model is much safer than holding Microsoft alone.
It is a low probability event that the stocks you hold will perform as strongly as Microsoft. There are too many examples of bankruptcies.
**
The stocks cannot be sold. Please refer to the situation during the stock market crash in July 2015 for details.
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