Before the news of Wang Tianyu's press conference appeared in media newspapers and magazines, Tianyu Bank's stock price rose rapidly. Those reporters thought that they should be able to make a lot of money if they got the first-hand information, but to their disappointment, the stock price of Tianyu Bank was only a buy, not a sell, so those reporters did not buy Tianyu Bank's shares in their accounts at all, not even a single share.

And the stock price of Tianyu Bank has also appeared a very strange scene - infinite rise, infinite decline may often occur in the financial world, but the infinite rise is pitiful, and the so-called "immeasurable" here is not really immeasurable, but the trading volume is very small. However, Tianyu Bank has a real immeasurable rise this time, that is, it has only achieved one share (note: if there is no transaction in one share, the stock price will not change, so at least there must be a transaction, and then the stock price will be subject to the latest transaction price), and the stock price has gone up directly, up 100% in an instant, and then there is no more trading volume, and the stock price has not changed. This is truly a miracle in the financial world! It's a miracle like never before!

Of course, no one knew that Wang Tianyu now had full control over all the shares of Tianyu Bank, because Wang Tianyu's Tianyu Fund only publicly showed 60 percent of the shares. Wang Tianyu didn't want Gao Sheng to be vigilant to do this, and with 60% of the shares, he was already fully controlled, and he could decide everything about the bank by himself.

The rest of the stocks are scattered among several other fund houses in the United States. However, there is one thing that makes people doubt that the funds that hold shares of Tianyu Bank have just been established for a short time, and the scale of these funds is not very large, and the funds are probably between 50 and 10 billion US dollars.

Of course, the founders of these funds are all natives of the United States, so naturally no one else will suspect that it is just a coincidence. However, what is even more strange is that these fund companies have one thing in common. They each own shares in one of the world's most famous cosmetics companies. However, the world's famous cosmetics companies have a large stock circulation, and their holdings are not very large, not reaching 5%. Naturally, there is no need to go to real-name registration to announce it. Moreover, these funds are very secretive, and it is difficult for ordinary people to find them, and even those people from big families and large consortia have to work hard to find out. So, it can be said that these funds did not attract anyone's attention at all.

In fact, all this was secretly manipulated by Wang Tianyu, and even these fund companies knew nothing about it, and they were just acting on orders. Wang Tianyu bought the shares of those cosmetics companies through those funds to prevent short-selling for Gao Sheng.

Soon, Wang Tianyu's remarks at the press conference made headlines in many well-known media around the world. Of course. If it were usual, or if it were another person, maybe such a piece of news would not have made the headlines of so many famous media outlets. However, some people who watch the drama just can't get used to Gao Sheng's style, and Gao Sheng has a history of more than 100 years and can create such a huge investment bank. Along the way, it can be described as bloody and bloody, stepping on the white bones to ascend to the top, and naturally there are countless enemies, although those enemies will not easily start a war with Gao Sheng, but they will not let go of such a good opportunity, in this way to disgust Gao Sheng, and then continue to watch the show.

Wait until the U.S. stock market closes in the morning. Another piece of news quickly swept across Wall Street and spread across the globe.

Because after the stock market closed, those analysts did not leave work immediately, but began to analyze the stock trend of Tianyu Bank.

One by one, "Tianyu Bank's stock price has risen immeasurably, creating a miracle!" Analytical research reports and news with the headlines of "Tianyu Bank's stock trading volume is only one share, but the stock price has doubled wildly", "Tianyu Bank, the dark horse of the US stock market", and "Tianyu Bank, the miracle worker of the US stock market", have made headlines in major financial media and magazines.

Because the U.S. stock market has never seen such a real rise before, Tianyu Bank can be said to have set a precedent for the U.S. stock market. Naturally arouse the interest of all stock analysts. And after their research on the recent trend of Tianyu Bank's stock, they found that in fact, the stock trading volume of Tianyu Bank has been very low in the past few days, and everyone didn't care about it at first, thinking that Tianyu Bank was about to go bankrupt, so no one cared. But now it's different, Tianyu Bank's stock can be said to be priceless.

As long as you are familiar with the financial industry, you know that there is only one possibility for Tianyu Bank to have this situation, that is, Tianyu Bank's shares are completely monopolized. All the shares of Tianyu Bank are only in the hands of a few people, and these people should have reached an agreement, or they all have a tacit understanding, that is, they will not sell the shares of Tianyu Bank in their hands.

After reading the news about Wang Tianyu, governments around the world and those financial giants, as well as those big conglomerates and big families, all frowned and looked at the stock price chart of Tianyu Bank. The expressions on their faces became serious. On the one hand, Wang Tianyu hired a world-famous bank executive with high salaries, and on the other hand, he injected a large amount of money into Tianyu Bank, and Gao Sheng now holds a large short position in Tianyu Bank stock. Wang Tianyu's intention at this moment seems to be very obvious, he wants to force Gao to win.

In fact, the U.S. stock market and the stock market of many countries can operate in both directions, both long and short. However, there is an essential difference between shorting the stock market and shorting the foreign exchange market, shorting the foreign exchange market is just selling one currency and holding another.

Shorting a stock is that you don't have the stock in your hand, so you can only borrow it from someone else, usually from a broker.

First of all, there must be someone willing to lend the shares, of course, this is not for nothing, you need to pay interest, and the level of interest depends on the "shareholders who are willing to lend" and the "shares that want to borrow" supply and demand negotiation. Secondly, after the shareholder lends you the stock, the initiative to close the position and make up for it cannot be said to be completely in your hands, because the thing is still someone else's, and people can sell it. It can be said that in an inactive market, if you can't convert the borrowed shares to the counterparty in time, then you have to buy them immediately. Sometimes the cost of shorting and borrowing shares is not low. And there is also the possibility that the counterparty is forced to close the position because of the counterparty's choice, so in general, shorting the stock is a short-term profit.

Generally speaking, short-selling institutions borrow from a brokerage firm when the short-selling target's stock is at a high level. Sell in the market, then publish a research report that is unfavorable to the company, and after the stock falls sharply, buy the same number of shares at a low price and return it to the broker, so as to earn the difference. If you do it right, you can make a lot of money.

However, in general, the risk of shorting is much greater than the risk of going long, because the downside of the stock is limited, and as a shareholder, since the day of the emergence of limited liability companies and joint stock limited companies, you only need to bear limited liability for the assets you have invested, even if the bankruptcy liquidation is at most zero and delisted. In other words, the biggest risk of going long is losing all of the "book value". The risk of shorting is unlimited, because the stock is unlimited upside, no one can predict how high a stock can rise, and the last link of shorting is to buy back according to the current price of the transaction, so the profit margin is limited. The room for loss is unlimited.

While the short-selling mechanism seems to be able to call the market for the wind, it still faces the risk of short squeezing.

According to the regulations, short sellers need to buy back the shares at maturity and return them to the broker. The risk of short squeeze refers to the fact that if there are more short sellers, which means that the number of stocks that need to be bought back at maturity is large, the repurchase pressure will cause the stock price to rise sharply, thus further forcing the short sellers to buy back the shares at a high price and suffer huge losses. Of course, you can also continue to hold short positions. However, you have to pay high interest rates and constantly increase your margin without limit to prevent forced liquidation.

The extreme situation of the market is that when the vast majority of stocks are finally concentrated in a certain institution or individual, the short seller cannot buy the stock in the market at expiration, and the only option is to buy the stock from the short seller and let it be slaughtered.

This has certainly existed in the history of Wall Street. 1916 year. Financier Ryan gained control of the American Stutz Motor Company. In January 1920, Stutz's stock rose from $100 to $120. When it rose above $130 in February, the bears started to make a move. Ryan did not hesitate to use all his property as collateral to eat all the stocks sold in the market. At the end of March, the stock rose to $245. It rose to $391 in April. In the end, the exchange set up a mediation committee to regulate the short squeeze incident, and both the long and short sides accepted the plan to close the position at a price of 550 yuan.

This means that the bears ended up buying shares at $550 that were only $100 three months ago. Ryan made huge profits from the short squeeze, which caused most of the short sellers to lose so much money and even go bankrupt, and the stock market fluctuated violently.

Even in the current U.S. market, short squeeze is happening every day. For example, LinkedIn, a popular business networking site, rose 109% on its first day of listing on the NASDAQ, closing at $94.25 and its P/E reached 592 times. As a result, short sellers issued reports that the stock was grossly overvalued, which caused LinkedIn to fall from $94 at the beginning of the IPO to $63.71, a drop of nearly 32%.

However, due to the small circulation of LinkedIn, only 7.84 million shares, it provides excellent natural conditions for short sellers. In just nine trading days, LinkedIn rose nearly 50%. It returned to $94.54 on the last trading day before the Independence Day holiday. The short squeeze wins by a big margin, and if the initial short seller does not take profit in time, he may lose his vitality.

It can be seen that short squeeze often occurs in stocks with small circulation, and its stock price is easy to manipulate, forcing short sellers to buy back stocks to close short positions. If the demand for shorting is high, the cost of borrowing shares from brokerages increases significantly, and only in the event of a significant drop in the stock price can the short-seller make a significant profit.

Wang Tianyu's trick was so beautiful that everyone couldn't help but applaud Wang Tianyu's shooting. Countless people couldn't help but sigh to themselves: "This Wang Tianyu is really a financial genius, no, maybe the genius is not enough to comment on his talent." Wizard? Wizard? These two words are also very suitable for him, but they have never been able to describe Wang Tianyu's extraordinary talent. It's just that the only flaw is that Wang Tianyu's shares in Tianyu Bank are still too small, and it would be more perfect if he could hold more shares, so Gao Sheng would have to be slaughtered by Wang Tianyu. It's just that what they don't know is that Wang Tianyu deliberately did this to prevent Gao Sheng from not daring to short the shares of Tianyu Bank because he was worried about the risk of shorting.

At this moment, many financial giants, big families, big conglomerates, and even those big countries have begun to face up to Wang Tianyu. They all cherished their talents, hoping to take Wang Tianyu for their own use.