Manhattan, New York, USA, a box on the second floor of the New York Stock Exchange

"I can't care so much, now the chips of Saturn Motors are in the hands of Du Merrill Lynch Securities, they are the exclusive underwriters of the underwriting at the floor price, and now they have become the second largest shareholder in disguise...... although they have the desire to cash out and withdraw funds, but it is impossible to suppress the stock price of Saturn Motors held by them, if you want to buy it, you have to take it early, or you can't borrow securities if you want to go short" Mai Gao Jackson belongs to the temper of doing what he says, as soon as he said this, Morgan Stanley and the two vice presidents of Salomon Brothers looked at each other, nodded in unison, and the three of them began to grab the hotline and give instructions to their respective traders on the floor to buy Saturn cars.

Saturn Auto's share price in a rush of buying to push straight up, due to the scarcity of profit-taking selling, and Merrill Lynch, which holds the bulk of Saturn Auto stocks, sold 10 million shares of Saturn Auto shares after the market opened, and entered the stage of reluctant to sell, for Chambers Fitter, the general manager of the business department of Merrill Lynch Securities Center, it is easy to manipulate the stock price to raise the stock price, which is nothing more than buying all the way to keep liquidity while gradually emptying the chips. The problem is that at the opening of the market, Jiang Yelin handed a small note to his former boss, telling him that the G3 fund was ready to start short-selling securities at a price above $4......

This allows Chambers and his central sales department to rest assured that they can boldly long Saturn Auto stocks, and the internal portfolios and funds of the three business divisions will build positions in Saturn Auto shares above the issue price of $3 in batches, and you must know that Merrill Lynch's IPO underwriting account holds Saturn Auto shares as a reserve price underwriting and has to buy them in full without anyone subscribing, therefore, Merrill Lynch's internal fund account and customer account can only buy Saturn Auto shares from the secondary market of the exchange. It also depends on the rhythm and number of Chambers Fett, who controls the IPO special account.

Chambers Fett's 20 years of glorious experience in Merrill Lynch Securities, with a very rich sense of watching and on-the-spot control experience, and this time the chips are in their own hands, it can be said that the biggest killer is the 900 million shares of Saturn Auto shares on the IPO special account of the business department of Merrill Lynch Securities Center.

Of course, if the Saturn car is smashed out, no one will take over the Saturn car if it falls below the net worth, you must know that at this time, the average 30-day trading volume of General Motors is only 18 million shares, and the average 5-day trading volume is only 22 million shares, not to mention the stocks of Ford Motor and Chrysler Motors, which have fewer daily transactions, and other brokerages in the market do not even have Saturn Automobile shares that can be used for securities lending, and the remaining 50% of Saturn Automobile shares held by General Motors, as a major shareholder, have a 3-month lock-up period. It's not time to go public yet.

At 10:30 a.m. on Wednesday, Saturn's share price soared to $3.625, but the trading volume was only 20 million shares. The average transaction price was $3.575, Morgan Stanley bought 2 million shares, the price was as high as $3.775, and the traders of Salomon Brothers were in a hurry, grabbing 4 million shares at the price of 3.625, and then up, the price below $4 actually did not sell......

"What to do? The stock price of Saturn Motors has risen too evilly, why doesn't Merrill Lynch sell? Their IPO is a belly of goods, how much is this throwing? 18 million shares are up to the sky...... What does Merrill Lynch want to do? What the hell was going on with that guy named Django and his G3 Fund? Mason Jackson was a little confused, and in the special box of Goldman Sachs on the second floor of the exchange, Mason Aikman, the deputy director of investment of Salomon Brothers, had just grabbed 4 million shares of Saturn Auto stock, and the stock price soared to $4.125, and the floating profit of more than 13% made Mason very happy, and he only complained that he had just bought less......

"Mai Gao, I see that the stock price of this Saturn car is a little hanging, Merrill Lynch Securities is borrowing strength to fight itself did not spend a few dollars all rely on us to carry a sedan chair for them, now that it has earned more than 10 points, how about falling into the bag? By the way, try how big the following undertaking is...... "Nick Lewis, deputy director of investment at Morgan Stanley, is a heavy master and feels that he can't close his eyes and ask Merrill Lynch and Saturn Motors to lead the way with their stock prices led by the nose......

"Do you want to throw? Okay, 3.975 Goldman Sachs can eat all the 2 million shares you bought, Mason, do you want to sell the 4 million shares? I ate it all, and the price was 3.975! "Maigao-Jackson, when he bought General Motors shares a few days ago, he bought and sold short with millions of shares, and the price per share of General Motors is 15 times that of Saturn, this Nima is co-authored in the trading box today to accompany Merrill Lynch Securities, and the investment vice presidents of the three major brokerages got together for a long time, and it took a long time to toss out a trading volume of less than 30 million US dollars. Just kidding!

"Uh, that's not good, then I'll take a look at ......" Nick Lewis scratched his head a little abruptly, in fact, this product was taught a hard lesson by Merrill Lynch in the short selling and short buying of General Motors two days ago, and it is really empty-hearted, Goldman Sachs, Morgan Stanley and Salomon Brothers held a total of more than 40 million shares of General Motors stock is forced to short and lure more and finally cut a loss of more than 100 million US dollars. It's directly a huge loss in a single day, and it's unlucky to cut the meat!

$4 is obviously a pressure level, not only Nick Louis and other senior practitioners feel the need to settle for safety and even play a one-day arbitrage short-term difference, after the market opens, some short-term investors who bought Saturn auto stocks have also begun to take profits, the price of $4 has a jagged see-saw, there are constantly tens of thousands of shares thrown out, and new investors continue to take away the chips, although when Goldman Sachs, Morgan Stanley and Salomon Brothers began to wait and see, There have been no large orders, but the traders at the various brokerages on the floor are busier than before......

Due to the mechanism of market makers, after the listing of Saturn Auto, in addition to Merrill Lynch Securities is the market maker of Saturn Automobile, Goldman Sachs, Morgan Stanley, Salomon Brothers and Credit Suisse First Boston are also members of Saturn Auto Market Maker, so the brokerages themselves will buy some Saturn Auto shares in order to maintain liquidity, which can make major brokerages have the conditions to match internal trading orders and skip the costs and fees of public trading on the exchange, such as a brokerage has customer A and customer B. One wants to buy 10,000 shares and the other wants to sell 10,000 shares, so the brokerage can directly match the transaction internally without submitting the buy and sell order to the floor trader to open inquiry and transaction, which improves efficiency on the one hand and reduces costs on the other! The so-called fertilizer water does not leave outsiders' fields.

Brokerage market makers are more likely to directly become counterparties to buyers and sellers. For example, when the stock price of Saturn Auto is 3.575, customer A wants to throw 10,000 shares, the brokerage can directly buy the 10,000 shares to let the customer's sell order be traded, and then the brokerage adds the handling fee and the reasonable income of the market maker, such as 2 cents per share, at a price of 3.580 to the market to make a sell order, and wait for the new buyer to earn the difference and the market maker profit after taking over the chips from the brokerage, the market maker profit has certain rules and constraints, and the brokerage can not rely on the advantages of trading channels and information to buy 1 yuan from A and sell 1.1 to B!

The issue price of Saturn Motors at $3 per share actually opens the door for small and medium-sized institutions and individual investors to directly invest in North American auto listed companies, and the stock price is only one-fifteenth of others such as General Motors, one-twelfth of Ford Motors and one-tenth of Chrysler, which makes Saturn Auto's stock price look cheap, and in fact, Saturn Auto's stock price is 3 times more expensive than the stock price of the three major auto listed companies according to the price-to-book ratio, but the winner is not to blame, The issue price of Saturn Motors at $3 soared to around $4 in one morning, a 33% increase in half a day, which can be regarded as an outstanding report card on the first day of listing for most high-quality blue-chip IPOs!

In the box, Jackson, Louis and Aikman, the three stinkers, were stunned at noon and didn't go out to eat and ordered takeout, people stayed in the box and stared at the plate, General Motors' stock price is still between 48-49 US dollars, the sluggishness of the entire auto sector and the newly listed Saturn Motors are in stark contrast, noon was originally a time when transactions were scarce, but the transactions for the first day of listing of new stocks have been very active, at 11:30, Saturn Motors has traded 40 million shares, Among them, about 5 million shares were tossed out of short-term funds from intraday T+0 trading, and the stock price of Saturn Motors finally broke through the shackles of $4 and began to climb up along a gentle slope!

"I can't wait any longer, I have to buy it now!" Goldman Sachs' vice president of investment felt that it was a joke that the three of them only opened a position of $30 million in the morning, swallowed the last piece of pizza in his hand, Mai Gao Jackson wiped his hands, grabbed the Goldman Sachs hotline and gave instructions to the floor traders, "Buy Saturn Auto stock from now on and buy 10 million shares below $4.5 first!" Buy an additional 7,000,000 shares up to $5! ”

Nima at this time, who is still polite to whom, Mai Gao Jackson's telephone trading order, Nick Lewis and Mason Aikman quickly threw down the half-eaten pizza, grabbed the hotline and directly placed a buy order to their own traders in the market, "Buy 15 million shares of Saturn Auto, no more than $5.275!" ”

Solomon Brothers' vice president of investment, Mason Aikman, was even more exaggerated, grabbing the microphone and yelling at the traders in his floor, "You can buy 20 million shares of Saturn cars, there is no price cap!" ”