20demayo Chapter 589 Stocks
Chapter 589 Stocks
After sending Lu Ye and Su Yunjie back to the hotel, Shu Wen returned to her home.
Lu Ye wants to mortgage his farm shares to test the stock market, which Shu Wen thinks is crazy.
Sitting on the sofa in the living room, Shu Wen was a little dazed.
Old Master Shu walked down the stairs and saw that his precious granddaughter looked absent-minded, so he walked over.
"What's wrong? Didn't you go to look for Lu kid early in the morning? Why are you so distracted when you just came back?" asked Mr. Shu.
"Grandpa." Shu Wen came back to her senses and called out softly.
"Anything on your mind?"
Shu Wen rarely does this at home.
Old Master Shu immediately guessed that Shu Wen must have encountered another difficult decision.
He hesitated.
Shu Wen finally spoke up about this matter: "Lu Ye wants to use his farm shares to get a mortgage loan from the bank..."
"Lu Ye has no experience in stock investment and knows nothing about Hong Kong. I think his actions are simply a waste of money."
"But I can't persuade him. I really don't know whether I should help him this time."
It turned out to be the case.
After listening to his granddaughter's words, Mr. Shu had a certain judgment on the matter in his mind.
Shu Wen's worries were right.
For a young person from the mainland, even if he is extremely smart and capable, it is extremely difficult to achieve results in a short period of time when faced with a very unfamiliar field and environment.
What's more, the stock market has always been turbulent and a game between capital-rich consortiums.
Ordinary retail investors are just shrimps on the plates of those consortiums.
If Lu Ye rashly plunges into such a game, he will most likely be eaten alive.
"It's a good thing that young people dare to take on challenges, but I also think his idea is a bit too radical."
Mr. Shu also thought about it for a moment, then asked Xiang Shuwen: "How much money does he want to borrow?"
"He said it would cost at least 200 million Hong Kong dollars," Shu Wen replied.
"That's quite ambitious." Upon hearing the amount, Mr. Shu couldn't help but say.
200 million Hong Kong dollars is nothing to the Shu family, but this amount of money is several times the wealth that Lu Ye can control.
"You want to help him?"
Shu Wen nodded. "I know him. He's actually quite strong-willed. Once he sets his mind to something, he'll go to great lengths to achieve it. Even if I don't help him contact the bank, he'll definitely find another way to do it himself."
"In that case, I might as well help him."
How could Grandpa Shu not see what his granddaughter was thinking?
Ever since his son Shu Tianqi told him that Shu Wen liked Lu Ye, Grandpa Shu has been carefully observing his granddaughter's every move.
Shu Wen said she wanted to help, which meant she had her own plans.
After a brief thought, Mr. Shu said:
"The farm is one of the most important projects for our Shu Group next year. If Lu Xiaozi really loses his shares to the bank, it will be a bad thing for our farm project."
"He wants 200 million Hong Kong dollars. We, the Shu Group, will give him this money in exchange for the 4% stake. If he can't pay it back later, we will take his shares."
Hearing what her grandfather said, Shu Wen was a little happy at first, but then her face became long.
"Grandpa, if he loses money in the stock market and can't pay back the money, we really have to take away his shares, right?"
"Of course! This is business."
"Lu is still young. Sometimes falling a few times isn't necessarily a bad thing. If things always go smoothly, people's hearts will inevitably wander, and they will be more likely to make bigger mistakes later."
"If he fails this time, then this 4% stake will be the price he should pay, and it will also be the tuition fee for his growth."
Mr. Shu said.
"But, won't this make him think that we are taking advantage of the situation?" Shu Wen said in a low voice.
"The business world is like a battlefield, and taking advantage of others' misfortunes is common. If kid Lu insists on doing that, then this will be a lesson for him," said Mr. Shu.
At the same time, in the Lijing Hotel.
Su Yunjie sat in the living room of Lu Ye's room.
The whole person turned left and right, as anxious as an ant on a hot pan.
"have a drink?"
Lu Ye stood in front of the wine cabinet, picked out a bottle of red wine, and spoke to Su Yunjie across the air.
Seeing that Lu Ye was acting as if nothing had happened, Su Yunjie asked even more anxiously:
"I see you're already drunk even before you've had any drinks. Don't tell me you're really planning on taking out a loan and speculating in stocks, are you?"
"of course it's true."
Lu Ye screwed the seahorse into the cork, then took two red wine glasses and went to the sofa in the living room.
bang~
Lu Ye pulled out the cork, and a fragrant aroma of wine dissipated into the air.
Lu Ye poured a glass of red wine for Su Yunjie and himself.
"I won't drink, brother-in-law. Tell me honestly, isn't stock trading just like gambling? If you don't do it right, you'll lose everything."
Su Yunjie was in no mood to taste the red wine.
He heard every word Shu Wen said when she tried to persuade Lu Ye before she left.
Shu Wen used such a serious word as "skipping stones on water", which was enough to show how risky Lu Ye's plan was this time.
Even Shu Wen said so, so is there any possibility of success?
Su Yunjie, who knew nothing about stock trading, simply linked it to gambling.
"You know what, for some people, stock trading is just like gambling." Lu Ye said with a smile.
"Then you're still going to gamble? No! I don't agree with this. I can't watch you jump into the fire pit!"
When Su Yunjie heard what Lu Ye said, he became even more excited.
"Don't get so excited. Let me explain to you what stocks are and what stock speculation is. Maybe you'll understand."
"Okay, you say."
Lu Ye took a sip of red wine and then said:
"Stocks are a type of security. They are issued by listed companies and serve as a certificate of ownership and rights. Owning a company's stock entitles you to its dividends and bonuses."
Su Yunjie listened to Lu Ye's explanation, but he could only understand half of it.
"So you're saying you're going to spend money to buy shares in a company you don't even know, become a shareholder, and earn dividends?"
Lu Ye shook his head and continued: "After talking about stocks, let me tell you what stock speculation is."
“Simply put, stock trading means using today’s money to buy a company’s future development.”
"For example, a company wants to introduce new equipment, but it has no money, so it starts issuing stocks to raise money. I buy its stock, and the company loses some of its shares, but gets money, which it then uses to buy new equipment and increase production, and the company continues to do better and better."
"The company is also growing bigger and bigger, with both assets and profits increasing."
"As a shareholder of this company, I can not only enjoy dividends and bonuses, but the value of my shares has also increased, becoming more valuable."
“That’s what I mean. Use today’s money to buy future hope.”
Su Yunjie nodded. What Lu Ye said was easy to understand.
"I think I understand. If you buy stocks and the company grows in the future, the value of the shares will increase. But if the company doesn't do well in the future, then the value of the shares you bought will decrease, right?"
"Yes! That's what I mean."
“That’s the fundamental principle of stock trading.”
"And stock trading is speculation based on this basic principle!"