Chapter 557: The Fierce Game of the New York Stock Exchange
Martin started buying Master stock and took all the buy orders!
He was determined to short the stock until the short sellers screamed. No one knew that behind Martin, there was a country's government supporting him in all possible transactions.
By the end of March, it looked as if his goal was within reach.
On March 24, the trading price of Master's stock reached $245 per share during the day, and rose to $282 per share at the close. By April 1, the stock price reached $391 per share. Most stocks
The holders of Stern stock had already begun to cash out and sold their shares to Martin. In fact, Martin was the only buyer on the market at this time.
The short sellers who originally sold at $130 per share in this massacre are now facing destruction.
If Martin held all the Master shares, they would have to buy shares from him at the sky-high price offered by Martin to close their position. However, there are still some die-hard short sellers who continue to sell short, and they buy shares from Martin.
Borrow the stock and sell it to him at a higher price.
If Martin could successfully kill Kong, under normal game rules, their behavior would be tantamount to suicide.
Because the short sellers borrowed the stock from Martin, Martin knew who they were—most of them were members of the exchange, and some of them sat on important committees of the exchange.
On March 31, Martin was summoned by the exchange's Business Conduct Committee to explain the unusual movements in Master's stock. Of course, committee members already knew the real reason for the stock's soaring.
Martin also knew that they were asking questions knowingly, and he politely explained: "The change in Master's stock is because he already owns all the Master's stock."
In other words, he was shorting the stock. At the same time, he set a price so that short sellers could buy Master stock from him at $750 per share to close their positions.
The shorts decided to hold on. That afternoon, Martin was told that the exchange was considering delisting Master, which meant that Martin would not be able to sell his shares. Martin's response to the exchange committee was: "If they
By doing so, the closing price would be $1,000 per share instead of $750 per share."
But... curiously, in the minutes before the market closed at 3 p.m., short selling continued on the floor, with short sellers continuing to borrow shares from Martin, the only source of Master stock on the floor.
As soon as the stock market closed... the real reason for the short sellers' actions that seemed to be "digging their own graves" became immediately clear.
The Board of Governors of the New York Stock Exchange, the highest authority of the exchange located at 8 Broad Street, announced that they unanimously resolved to suspend trading in Master's stock.
A reporter pointed out that this kind of thing has never happened before and that the exchange lacked legal basis for doing so. Faced with such accusations, the exchange spokesperson responded: "The exchange can do whatever it wants!"
In the history of Wall Street, no matter what conspiracies and tricks have appeared, there are still two rules of the game that have never been violated.
The first one is "a deal is a deal", that is to say...when the buyer and seller agree on the price, the transaction is completed. Regardless of any subsequent changes in the stock price before the stock is delivered, the delivery must be based on the price.
Settlement at the originally agreed price.
The second is that if this rule is not strictly enforced, then no one can imagine how a rapidly changing and huge free market like the capital market can operate normally.
The exchange can do things that no individual can ever do, even though its privileges are supposed to serve the public interest.
On April 5, the exchange announced that all of Martin's contracts were void... and said: "The New York Stock Exchange will not treat those who cannot deliver the stock on time due to the inability to obtain Master stock as a breach of contract."
In other words, the time-honored maxim - "As long as he sells short, he must buy it back...or go to jail" does not work for those with deep connections on the exchange.
The same sacred rule is that the privacy rights of parties in contracts shall not be violated, that is to say, neither the buyer nor the seller can reveal who the other party to the sales contract is!
According to j.
p.
Morgan's famous saying is that no businessman wants to do business with a "transparent pocket." The exposure of a sales contract may mean that a carefully organized investment operation is completely destroyed.
The New York Stock Exchange was convinced that Martin would not reveal who the short sellers were in the Master's Battle, so it made up lies at will. Its spokesman shamelessly said that short sellers are mostly ordinary people who abide by the law. Like the short sellers
The fabricated story that a housewife from a small town called "Dubuque" turned out to be a big short seller of Master's stock. People knew it was complete nonsense when they heard it... So when this lie from the exchange appeared on
When it appeared in the newspapers, people didn't even bother to refute it. Martin completely ignored the New York Stock Exchange's statement declaring his contract invalid and still wrote to the exchange suggesting that both parties reach a compromise to avoid causing more trouble for the short sellers. New York
The stock exchange did not respond to requests for comment.
Now, nearly everyone on Wall Street is watching the battle with excitement. People gather in front of brokerage company signs rather than stock quotes and nervously await the latest announcements from the warring sides.
Martin knew that his image as a weakling fighting against a group of powerful people had great inciting power. On April 13, he submitted his resignation to the exchange and resigned from the exchange. In his resignation, he wrote: "As long as you are only right
You are responsible for your own interests, as long as you can make your own rules. As long as you continue to let your personal interests affect your discussions, your judgments, and your decisions, I am ashamed to be associated with you."
Martin's resignation also freed him from the constraints of various exchange rules. In other words, he was freed from the constraints of Wall Street's code of conduct, at least he thought so.
Martin quickly handed over a list of nine exchange members to the New York World. Although he did not say it explicitly, he implied that these people had sold him Master shares, but had not yet delivered.
The nine members quickly denied that they or their companies were short-selling Master's stock, although they also claimed that they had done something similar for their clients.
However, it goes without saying that a broker should be responsible for all his transactions, whether he is doing them for himself or for his clients.
Immediately, various gossips began to spread. Some said that the government would soon strengthen external supervision of the New York Stock Exchange, and some said that a mysterious organization would support Martin with its huge assets.
The New York Stock Exchange began to change its tune. It issued a statement saying that what it was doing was purely to protect innocent investors, not the short sellers of Master's stock. It also suddenly decided that "these short sales contracts"
The settlement will ultimately be resolved through negotiation between the parties.
Martin quickly took advantage of this favorable situation. He demanded that the short sellers perform their contracts. In other words, he formally asked the short sellers to close their positions and pay him Master shares. If the short sellers did not have the stock in hand, according to the rules of the exchange, he would
He has the right to "buy on behalf of", that is to say, he can buy the stocks that short sellers owe him from himself in the name of short sellers and price them at will.
The short sellers have no choice but to pay this price. If they cannot pay, they will face the tragic ending of bankruptcy and disappear from this gaming field.
On April 20, the exchange's Investor Protection Committee stopped resisting and admitted that it represented more than 58 companies that had shorted a total of 5,500 shares of Master stock. Of course, the actual number was much higher than this.
Numbers are just for the public.
A coordinating committee was then established. Most of the members of this coordinating committee were bankers who lent money to Martin for short-squeeze operations. They tried to find a compromise between Martin and the short sellers, but the two sides could not reach an agreement, so Martin
Announced that he would "buy" the shares on his behalf at 10 a.m. on April 24.
Because Master's stock had been suspended from trading on the New York Stock Exchange, Martin purchased the shares at the "curb market" on the Broad Street sidewalk, and because Martin had withdrawn from his trading seat on the New York Stock Exchange,
He has reason to be free to buy and sell stocks in any other market he can find.
April 24th is a Saturday, and Saturday is still a half-day working day on Wall Street.
On this day, Broad Street was crowded with people. Everyone put aside their work and ran to see how the show would end. At this time, the coordination committee was still meeting in a nearby law firm!
Finally, the bears realized they had no choice but to surrender.
But, at what price will it end? Each of the 58 short sellers wrote down a price they could afford on paper, and then took the average. The final result is: they now have to pay for what is still just a daily price on January 1.
A $100 share of Master stock pays $550 per share.
They squeezed through the crowd and came to Martin's office, and Martin immediately accepted the price. The Master stock short-killing campaign was over, and Martin's profit from it was roughly a huge and terrifying US$1.5 million!
This is a personal victory!
In the eyes of Americans, Martin used the power of "one person" to defeat the New York Stock Exchange and those arrogant and hateful short sellers!
The behemoth New York Stock Exchange suffered the most horrific defeat in history!
But Martin knew that what was supporting him behind the scenes was a country and their head of state: Wang Hengyue!!.