Chapter 136 Insider Trading



The directors of Xishan Company were not so arrogant as to look down upon the small profits from shipping grain. Rather, in this world, the risks and benefits of doing something are directly proportional.

If the risk is too great and the benefit is not enough, people will subconsciously want to avoid it even if it is an order from their immediate superior.

Besides, Zhao Hao was not the boss of Duke Dingguo and the others. They were all shareholders of equal status, at least in the eyes of Duke Dingguo.

But when Master Zhao proposed the "monopoly of maritime trade in Jiangnan", everything changed.

As a director of Xishan Company, he naturally understood that these seven words contained the greatest wealth of the Ming Dynasty!

Although Xishan Company is doing a great job in coal mining, compared with the offshore business originally controlled by the nine major companies, it is nothing but a dwarf and is only fit to carry shoes for the nine major companies.

Who in this world doesn't covet the door to the wealth of the nine families? Now that Zhao Hao has helped them open the door, there is no reason to hesitate any longer, of course they will rush in!

The atmosphere in the meeting room became heated, and the directors asked questions to Master Zhao one after another, wanting to know the details of the matter, what they were required to do, and most importantly... what they could get.

Zhao Hao answered patiently one by one.

He told the directors that Jiangnan Group would be responsible for all the provision of ships and shipping. Xishan Company only needed to help Jiangnan Group obtain the two complementary rights of "sea transportation of grain" and "legal maritime trade" to reach the conditions for cooperation.

In the future, we will only be responsible for public relations in Beijing and ensure the smooth traffic from Dagu to Beijing.

As for the distribution of benefits, Jiangnan Group proposed that both parties invest in and establish an "East China Shipping Company" based on Jiangnan Shipping Company.

In this "East China Shipping", Jiangnan Group holds 50% of the shares, Xishan Company holds 30% of the shares, and Jiangnan Shipping holds 10% of the shares. The remaining 10% is reserved for His Majesty the Emperor.

This distribution plan was so generous that the directors of Xishan Company were too embarrassed to bargain. If they helped fight for it, they could get 30% of the shares of the nine big companies. There was no such good thing in the world.

So the board of directors unanimously agreed to the proposal of Jiangnan Group and decided to make every effort to promote the transportation of grain by sea!

Even the chairman of the Supervisory Board, who was not supposed to speak, could not hold back.

"Whoever dares to stop the grain transport by sea will be the enemy who killed my father!" Duke of Ying, Zhang Rong, jumped up and raised his arms and shouted. He was not afraid that his father, Zhang Lun, would come to settle accounts with him in the middle of the night.

Although others were not as shameless as him, they all expressed their determination to overcome all difficulties and ensure the sea transportation of grain!

Seeing that the morale was high, Mr. Zhao smiled with satisfaction. Then he assigned tasks to the directors, asking them to seize the time to connect the activities and use their energy to build momentum for the grain transportation.

Although it is not appropriate to publicly promote the fight for maritime trade rights, so it is impossible to hold a shareholders' meeting, the members of the board of directors and the board of supervisors should still actively contact major shareholders and let them join this battle.

The board meeting lasted all day and ended at dusk, and the directors clamored that they would host a welcoming party for Mr. Zhao tonight.

"Let's go another day. The young master is too tired today." Fatty Tang was the one who knew Zhao Hao best after all, so he smiled and blocked the conversation for him, saying, "He has traveled across the ocean to Beijing and hasn't had a rest yet."

"We didn't think it through properly." Everyone hurriedly said considerately: "Then let's do it another day. When the young master has rested, we can have a good gathering again."

In fact, they didn't want to waste time today. They were all anxious to go home and raise money so that they could buy as many stocks as possible before the news spread.

Even a fool can guess that once today's news spreads, the company's stock will definitely skyrocket.

"It's a deal." Young Master Zhao agreed with a smile.

When everyone was about to leave, Zhao Hao suddenly seemed to have just remembered something and called them:

"By the way, everyone, according to Article 7 of the Company's Articles of Association, the board of directors and its members shall not harm the interests of shareholders and the company. Therefore, starting tomorrow, stock trading will be suspended in the trading hall until the company issues an announcement. During this period, the company will not support any private transactions."

"Hey..." The directors laughed awkwardly. As expected, no one can beat Mr. Zhao...

~~

When Zhao Hao came down from upstairs, he saw that the trading hall had already closed and only the guys were cleaning.

Watching the guys take down the water sign and wipe off the brush calligraphy with a rag dipped in water, Zhao Hao was full of interest in this ancient stock exchange hall. He walked to the counter with light steps and looked at the manager who was quickly dialing the abacus and calculating the transaction accounts for the day, and suddenly he was a little absent-minded.

Before he knew it, Mr. Zhao seemed to have taken the first place in the world again - the world's first stock exchange. The original first one, the Amsterdam Stock Exchange, was not established until 40 years later, so it could only be ranked second.

Unfortunately, it cannot be said to be the world's first stock exchange, because more than 30 years ago, the Dutch established the Antwerp Stock Exchange, but it was a bond market.

As his thoughts drifted, Mr. Zhao smiled and said to Tang Youde and Sun Dawu beside him: "It is said that insider trading is as old as the securities market. It seems that this is true."

The two fat men looked at each other, wondering who the young master was basing this statement on.

Fatty Tang laughed and said, "Fortunately, you have the foresight, no one can expect to benefit from insider trading."

"This kind of thing is inevitable." Young Master Zhao shook his head and smiled, "Now it's just our two companies. In the future, if more companies are listed, it will be too difficult to supervise them."

"We have also taken this issue into consideration, so we have not agreed to allow other companies' stocks to enter the market." Sun Dawu said softly.

"I see." This answered Zhao Hao's previous question. He said to Sun Dawu, "We can't throw the baby out with the bathwater. We need to allow high-quality companies to enter the market, otherwise sooner or later someone will replace us as the trading center."

"Yes, sir." Sun Dawu hurriedly lowered his head in response.

"If you're worried, you can strengthen the review, raise the entry standards, and formulate regulatory rules. You can also build another exchange somewhere else. Putting stock trading here will not affect the normal operation of the company." Zhao Hao finally had enough of the tour and turned to walk out.

"This is a good idea! Young Master is worthy of being called a Young Master!" Tang Youde's eyes lit up and he said, "I was actually worried before, what if other people's stocks collapsed or the company went bankrupt, and those small shareholders still relied on our Xishan Company? What should we do? Just set up a special exchange that has nothing to do with Xishan Company!"

"Yes, this is a good idea." Sun Dawu also said excitedly: "Why didn't I think of this before!"

"Because you are not a young master." Only the eldest brother can match Fatty Tang's flattery skills.

"Think about it slowly, you will eventually figure it out." Young Master Zhao smiled cheekily and told Sun Dawu, "Post the suspension notice tomorrow morning."

"We won't be able to see the lively scene here for some time." Sun Dawu opened a glass door for Mr. Zhao with some reluctance.

"You'd better take this opportunity to replace the door with a wooden one, or even an iron one." Tang Youde opened another door for Zhao Hao. "I'm worried that this place will be overcrowded when it reopens."

"That's true." Sun Dawu deeply agreed with this.

~~

The next morning, people who came to the lobby of Xishan Company to buy stocks as usual found a striking notice titled "Suspension Notice" posted at the entrance of the company.

People read curiously: "Because the company is planning a major event, in view of the major uncertainties in the event, in order to ensure fair information disclosure, safeguard the interests of investors, and avoid abnormal fluctuations in the company's stock price, the company's stock is hereby suspended. In addition, Lugouqiao Company is also suspended because it has a major relationship with the company.'

"During the suspension period, the company's shares will not be traded. The company will not recognize any off-market transactions during this period. The company promises that once this matter is suitable for public disclosure, it will immediately hold a shareholders' meeting and disclose relevant details, and then resume stock trading..."

After reading the notice, people became even more curious.

"What's going on? Why are you so mysterious?" A merchant from Tianjin said depressedly, "Well, it's a wasted trip."

"This is responsible for you." But more people expressed their understanding: "Those big shots are well-informed. If they rush to buy and sell stocks, we little shrimps who are in the dark will suffer losses."

"Yeah, that's right." The merchant nodded and said with relief, "Anyway, the money is still in my hands, so I can't suffer any loss."

Buyers like him who have not yet purchased the stocks will naturally find it easy to let go.

But those small shareholders who hold the stocks of the two companies are now worried. They don't know whether this so-called "major event" is a good thing or a bad thing.

"Is there any bad news? They're afraid we have to sell our stocks." Someone muttered pessimistically.

"It must be a good thing. If it's not a good thing, why would we plan for it?" Those who can buy stocks in this day and age are all financially savvy people. Naturally, they can read deeper information from this seemingly standard announcement.

"That's true. If something bad happened, the major shareholders wouldn't have time to sell, so how could the stock be suspended?" Everyone agreed.

"That's right. Xishan Company has thousands of coal mines sitting there, and they can make money without any trouble. Something that makes them spend so much time and effort planning must be a great thing that can make more money!"

The more people talked about this, the more they wanted to know the truth, so they flocked to the company lobby and asked the lobby manager what had happened.

The lobby manager had received instructions long ago, and he gave everyone a unified reply: "Dear, this is definitely good news, but we don't know whether it will work out. We are suspending transactions entirely for everyone's consideration. Please be patient..."

Now those who hold stocks are very happy. They hear that the stock price will at least not fall, and is likely to rise.

"Oh, what a pity! The price went up to 57 yesterday, but I thought it was too expensive and didn't buy it." A wealthy man wearing a Liuhe Yitong hat felt like he had missed the opportunity to rewrite his life, and he banged his head against the counter in frustration.

ps. Second update, there is one more to go, please vote for me!


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