On April 30th of the tenth year of the Xuanli reign, Ding'an Bo gave a lecture on economic issues in the Great Hall of the Jixia Academy.
This lesson is known in history as the first lesson to carry on the past and open up the future!
The far-reaching impact of this lesson is difficult to predict. It overturned everyone's understanding of business, created a new situation for business in the Yu Dynasty, and quickly affected the Wu Dynasty and the Fan State, until the whole world was shocked.
The great Earl Ding'an was thus hailed as the world's number one business genius!
…
At this moment, Fu Xiaoguan naturally had no idea that his small decision would cause such a huge storm in the world.
He stood on the podium in the auditorium, glanced at the people in the room below, and slowly spoke:
"Everyone here is a leader in the business world, a student at the Academy's Business School, or a colleague in the Commerce Department. Today's lesson will introduce you to some basic business terms."
The huge auditorium was silent.
He Sandao and Zong Shiji took advantage of Fu Xiaoguan's presence and sat in the center of the auditorium. At this moment, they also listened to Fu Xiaoguan's lecture with their eyes wide open and their ears perked up.
He Sandao had a strange feeling at this time. In the past, when he was at home, the old man invited those old scholars to give him lessons, but why did he feel sleepy as soon as he listened to them?
But now he had no desire to sleep at all, he was even extremely excited and full of anticipation.
If I had listened to the lectures so seriously before, I might have passed the exam and become a scholar, right?
Just as he was daydreaming, Fu Xiaoguan turned around and wrote two big words on the whiteboard: Stocks!
“Let’s start with stocks.”
"Everyone here must know that I issued shares at Sitong Bank and raised eight million in funds."
"So what are stocks? Let me explain it with an easy-to-understand example. I believe you will understand after listening."
"There was a blacksmith named Zhou in Pingling, the best blacksmith within a hundred miles. His unique forging technique made the kitchen knives he forged extremely popular among the people of Pingling. They were perfect for chopping bones and vegetables, and they were very handy with them.
Blacksmith Zhou fell in love with Zhang Xiaohua, the daughter of the proprietress of the Xiankelai Inn in Pingling County. He asked people to act as a matchmaker for her several times, but Zhang Xiaohua's mother was a snob. She disliked the blacksmith Zhou because he worked all day long but could not make many kitchen knives and could not earn much silver.
But Zhou the blacksmith really fell in love with Zhang Xiaohua, thinking about her day and night, always wanting to marry her home. Suddenly one night, when he was alone and unable to sleep, an idea flashed in his mind: If I could hire a few more people and buy more iron ingots, wouldn't I be able to make more kitchen knives? Or maybe I could build a machine to make kitchen knives, which would be much faster than hammering them myself! Pingling County is so big, with so many families, as long as these kitchen knives are made, there will be no worries about selling them!
It turns out to be storytelling!
He Sandao found the story interesting and listened to it with great interest.
Sima Che was very happy and was looking forward to whether the blacksmith Zhou in the story could marry the girl Zhang Xiaohua.
"Now the problem is, the market has prospects - people need kitchen knives, and the industry has advantages - Zhou the blacksmith is the best blacksmith in Pingling County, but Zhou the blacksmith has no money. What should I do?"
Fu Xiaoguan paused, and Sima Che was stunned. What should he do?
Many people sitting here were brought into the scene by Fu Xiaoguan through this story. If I were the blacksmith Zhou, what would I do?
Fu Xiaoguan counted his breaths in silence, then spoke again:
"Blacksmith Zhou couldn't sleep that night. He thought about it and thought about it. He thought of a man - there was a smart street stalker in Pingling County, Li San Gouzi. The next morning, he found Li San. They drank a few glasses of wine. Blacksmith Zhou told Li San about the matter. Li San's mind turned and he gave Zhou the blacksmith an idea."
What would be the idea?
Everyone was eagerly awaiting what was to come. He Sandao suddenly felt that this was definitely a bad idea, like robbing or stealing. This was the best solution his simple mind could come up with.
"What did Li San say? He said: 'You should issue kitchen knife tickets to your blacksmith shop based on the price of producing a thousand kitchen knives a year. Whoever buys your kitchen knife tickets will become your shareholder, and you can use their money to hire people and purchase raw materials.'"
"When Blacksmith Zhou heard this, he thought, 'Borrowing a chicken to lay eggs?' That's a good idea, but there's a problem. He's just an ordinary blacksmith. No one would believe what he says. How could anyone buy his kitchen knife tickets for no reason?"
"Li San came up with another idea. Your words are useless, but our Pingling County's local security guard, Old Man Qian, has a very high prestige. His words are effective. Let him guarantee you, and then people will buy your kitchen knife tickets.
So the two of them went to find Old Man Qian. He thought the idea was feasible and gathered the gentry and merchants to perform a grand show. On the stage, he publicly sold kitchen knife tickets to them. He also held a meeting and agreed that at the end of each year, everyone would receive a dividend based on the number of tickets they held. The better the business of Zhou the Blacksmith's shop, the higher the dividend would be.
Fu Xiaoguan paused again and said, "These kitchen knife tickets are stocks. Those who hold kitchen knife tickets are shareholders of Zhou the Blacksmith's blacksmith shop."
"The stage is the stock market, where stocks are publicly issued and a dividend model is established."
At this point, everyone suddenly realized and was amazed. It turned out that this was how stocks were operated.
But Fu Xiaoguan still hadn't finished speaking. He waited for a moment and then continued:
"Two years later, Blacksmith Zhou's blacksmith shop's business was getting better and better. He became rich and married Zhang Xiaohua. The group of people who bought the kitchen knife tickets also made a lot of money. Then what happened? Some people started to get jealous and wanted to ask Old Man Qian for help and buy shares in Blacksmith Zhou's blacksmith shop. But Old Man Qian was also in a dilemma. Blacksmith Zhou was not the same as before. His blacksmith shop was now prosperous and he had no shortage of money!"
"What should we do? As a highly respected local security guard, Old Man Qian came up with a solution. Since the knife tickets only recognized the tickets, not the people, he simply used the stage as a 'trading market', allowing those people to estimate the price and buy and sell on their own. In this way, stock trading came into being."
"What exactly determines the price of a stock? First, the initial price of the stock, and second, the issuing company... The Company Law is about to be implemented, so you should all pay attention. The issuing company's performance reports must be accurately and promptly released to investors. The price of a stock is affected by the issuing company's performance. The better the performance, the higher the stock price, which is a bullish trend. The opposite is naturally a bearish trend."
"So, when it comes to stocks, there are a few key words you need to understand and grasp: market prospects, industry advantages, stock market, public offerings, dividends, and stock trading."
"Currently, in the Yu Dynasty, only the Sitong Bank has the right to issue stocks. The Sitong Bank is the stock trading center. We have a sound evaluation mechanism and will strictly review companies that issue stocks. So everyone... don't be complacent. I know a hundred times more about the loopholes you can think of than you do!"
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