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Chapter 1367: Shorting Stark Industries with Double Leverage

Chapter 1367: Ten Times Leverage Shorting Stark Industries
With the introduction of new energy technologies, Stark Industries will usher in an unprecedented turning point.

This not only means that the company will get out of trouble and regain vitality, but also indicates that the equity in Chang Wei's hands will appreciate rapidly, bringing immeasurable benefits.

A return of dozens or even hundreds of times is a dream come true for any investor.

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.

Amid the aftermath of the applause, a satisfied smile appeared on Tony's 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 technologies.

The next step 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 the fact that Tony is a member of the military-industrial complex and a big capitalist. Otherwise, if it were someone else, they would not even think about being able to take this step, and would be directly "dumped" by the old energy giants such as Rockefeller, and then the property rights of new energy would be snatched away.

Tony looked at Chang Wei at this time.

Perhaps, cooperating with Ares Industries would be a good choice.

Ares Industries has clearly crushed Osborn Industries and Hammer Industries. More importantly, with Stark Industries closing its weapons division 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, they will undoubtedly form a powerful force that is strong enough to fight against old energy giants such as Rockefeller.

Tony is not so naive as to think that old energy giants such as Rockefeller will compromise obediently.

Taking on the old energy giants is no easy task.

These chaebol families, which have been passed down through generations, have deep roots and enormous power. It is not easy to subdue or win them over overnight.

They will not easily give up their vested interests in the old energy field, nor will they easily accept the challenges of new energy technologies.

Tony understands that these plans will inevitably encounter many obstacles in their implementation, including attention and pressure from the international community.

Especially since everything said today was just verbal and written, they did not sign any agreement.

But what Tony didn't know was.

Chang Wei had shorted Stark Industries before. To put it simply, shorting means predicting that the price of a certain stock will fall, so he borrows the stock and sells it, and then buys it back after the stock price falls, making a profit from the difference.

Stark Industries' weapons division is an important source of its revenue. Once this division is closed, it will inevitably cause a strong reaction in the market and the stock price will inevitably fall sharply.

Based on this judgment, Chang Wei began a bold and precise plan.

He used his influence in the financial world to borrow up to $150 billion worth of Stark Industries stock 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 consider factors such as the borrower's credit rating, asset size, and market liquidity of the borrowed stocks when providing stock loans.

With Stark Industries' market value of up to $200 billion, although in theory it is possible to borrow shares worth nearly half of the market value, in reality, this requires Chang Wei to have an extremely high credit rating and strong asset endorsement, as well as the financial institutions' trust in his market judgment.

Therefore, Chang Wei's ability to successfully borrow such a large amount of stocks undoubtedly demonstrated his deep foundation and extensive network in the financial market.

After all, he is the founder and president of Ares Industries, and no one would doubt his background and connections.

Next, Chang Wei adopted a more radical financial leverage strategy, magnifying the amount of borrowing by nearly ten times, which means that he actually controlled assets worth more than $1.5 trillion for trading. This operation was extremely risky, but the potential returns were equally amazing.

Over the next month, Chang Wei closely monitored every move of Stark Industries and the market's reaction to Tony's transformation plan.

Finally, the fateful day arrived.

As Tony Stark publicly announced his decision to close the weapons department, Stark Industries' stock price began to fall sharply as Chang Wei had expected.

This news was like a heavy bomb, instantly detonating the stock market.

In just a few days, more than $50 billion in market value evaporated and the stock price fell by more than %.

Countless investors suffered heavy losses.

At this moment, Chang Wei knew that his chance had come.

He acted quickly and used a highly leveraged strategy to sell a large number of Stark Industries shares he held when the stock price was at its high point. At the same time, when the stock price reached its lowest point, he bought a large number of shares at a low price to cover his position.

Between buying and selling, Chang Wei successfully earned a huge profit from the price difference.

Because he used high leverage, his net profit was still astonishing even after paying high interest expenses.

According to statistics, Chang Wei earned a total net profit of more than 80 billion US dollars 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 often come with 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 charges accounted for a considerable portion of his total profits.

Meanwhile, Tony Stark is busy dealing with the chaos within his company.

With the closure of the weapons division, a large number of employees are facing the risk of unemployment and the company's business structure urgently needs to be adjusted.

More importantly, Tony needs to find new growth points to make up for the revenue gap caused by the closure of the weapons department.

This series of problems made Tony extremely anxious. He simply 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 Stark Industries' stock price gradually stabilized, that Tony had the opportunity to calm down and examine the turmoil.

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 his weapons division.

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.

(End of this chapter)

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