Chapter 28
Chapter 28
Hyeon-joo’s sister, who heard everything, responded that it was absurd.
“Did you just see the L6 explode and do that?”
“Well, it’s like that.”
In fact, the most important point is missing. It’s about foresight.
But I can’t say that here. If I tell you anyway, you won’t believe it.
What is needed in investing is cool judgment and analytical skills that are not swayed by emotions, not supernatural abilities such as foresight.
If such a thing exists, what would you do business analysis for?
Ji Hyun-joo’s older sister, who had a headache, pressed her finger on her forehead.
“Are you saying it has nothing to do with insider trading anyway?”
Taehyung nodded his head.
“You need an insider you know to do insider trading or not, right?”
Hyunjoo noona looked at me. I nodded my head like Taek-gyu.
“Who do we know at Suseong Electronics? And at the time of purchasing the option, the L6 was doing well. Im Jin-yong would not have known that it would be discontinued.”
The most important part of insider trading is preemption using undisclosed information. Of course, a trade made before the non-public information occurred does not constitute insider trading.
Hyunjoo noona would be well aware of this.
Her sister Hyun-joo’s eyes softened slightly. But she still had the look of a pain in her head.
I asked carefully.
“But is this such a big deal that the FSS is investigating?”
The Financial Supervisory Service is like a dead end to financial institutions and investors. The fact that the FSS launched an investigation means that our actions have attracted attention.
Hyun-joo’s older sister said while smoking her cigarette.
“Do you know the Deutsche Bank Gate?”
“no.”
Unlike Taek-gyu, who shook his head, I nodded.
“Is the option shock incident that happened in the past?”
“right.”
Taek-gyu asked with a puzzled expression.
“what is that?”
“It’s a stock price manipulation case that happened on the option expiration date.”
On the expiration date of the option, stock price volatility increases due to investors’ liquidation of positions and closing deals.
For this reason, financial authorities are also keenly aware of the Quadruple Witching Day, when the expiration dates of derivatives (stock index futures, stock index options, individual stock futures, and individual stock options) overlap.
Fortunately, the option expiration date on that day moved in a flat manner without sharp fluctuations. I thought it was going to pass safely, but three minutes before the close of the market, a large number of put options, large call options, and spot sales poured out.
The index, which had remained flat throughout the market due to a sudden sell-off, plunged 50 points in just a few minutes, and the market capitalization of the exchange of 30 trillion won evaporated in the air.
“It happened at the same time as the closing time, so there was no time for financial authorities or investors to do anything.”
“So what happened?”
Hyunjoo’s older sister said.
“Put options skyrocketed hundreds of times due to the unexpected plunge, and call options became a piece of paper. Financial companies suffered huge losses, and several fund companies went bankrupt.”
As it was a suspicious situation for anyone to see, the financial authorities launched an investigation. And a shocking fact was revealed.
Deutsche Securities poured more than 2 trillion won in sales at the closing price for the purpose of stock price manipulation. And in the process, he made tens of billions of profits through options trading.
In a nutshell, they bet on a decline in the stock price and then they made a profit by dropping the stock price.
The case involving the Korean branch of Deutsche Securities as well as its parent company, Deutsche Bank, was widely reported in the media at the time.
Well, people who aren’t interested in finance wouldn’t really care.
“They even manipulated the stock price and made only 50 billion won. But you ate 10 times more than that.”
“·················ogue.”
Hearing this, I suddenly want to commit a mortal sin. We really ate a lot.
“The fact that you have made such a profit means that the financial institutions have suffered the same amount of loss. It’s a shame because the margin system was strengthened because of the Deutsche Securities Gate, otherwise the securities companies and investment trusts would have passed one after another.”
Options are a zero-sum game. Someone’s gain is always linked to someone else’s loss.
The options we’ve bought are unlikely to be feasible. If we hadn’t bought, the options would have been automatically retired and the issuers could have avoided losses.
Then there wouldn’t have been such a fuss.
Even if the option buyer incurs a loss, the premium is already paid. On the other hand, option issuers usually get stable sales revenue, but in the worst case, they have to bear losses of hundreds or thousands of times.
Therefore, there is a margin system, and financial companies can issue options only within the range where they can pay the margin.
However, in an unprecedented situation like this one, it becomes impossible to pay only with margin.
“It will be difficult for small businesses to avoid bankruptcy. Even after hedging like that, Golden Gate’s loss alone is $20 million. Domestic financial companies have to vomit all their profits for one year right now.”
Unlike Seosung Electronics, which is recovering from the decline, securities stocks continued to decline.
As Suseong Electronics is recovering, the spot loss should be at a manageable level. But options on futures have resulted in astronomical losses.
This is why derivatives are said to have been created by the devil.
“Fortunately, if it’s not insider trading, it won’t be much to investigate, so don’t worry.”
“I’m glad to have established a corporation in a tax haven.”
Hyunjoo nodded her head at my words.
“right. If OTK Company were a Korean corporation, I would have been sitting on the iron chair of the Financial Supervisory Service rather than the sofa at home.”
Thinking that he must have been taken to the investigation room of the Financial Supervisory Service and robbed of his soul, his spine becomes cold.
Taek-gyu said gruntingly.
“What have we done wrong?”
It’s not like Deutsche Securities did stock price manipulation, so it’s natural to feel unfair…
In the position of the financial companies who have dollowed thousands, there will be no dogs separately.
“I thought you were playing and eating quietly with 13 billion won, but you will have an accident like this. What will you do with the money in your account?”
Now it’s time to talk about the main point.
Taekyu cautiously spoke out.
“First of all, I shared some corporate shares with Jinhoo. 8-2.”
Hyunjoo noona was surprised at that.
“Did you give Jinhoo 20%?”
“Oh, no. Jinhoo’s share is 80%. I’m 20 percent. Jinhoo is now the largest shareholder of OTK Company.”
“······Huh?”
It took a while for Hyun-joo noona to understand those words.
“What do you mean? Why did you pass 80% to Jinhoo?”
“It is because Jinhoo found out the information, and it is because Jinhoo bought put options. I was just giving money. If it wasn’t for Jinhoo in the first place, I wouldn’t have been able to make this money.”
Taek-gyu may think it’s normal, but Hyun-joo noona’s opinion will be different.
In finance, it is common knowledge that the person who puts the capital in it gets a bigger profit than the person who manages it.
Even hedge funds or private equity funds rarely take more than 10 percent of their earnings as management fees.
It would be astonishing to have exceeded 80% of the profits on a board that would not be understood even if the profits were split in half.
If I had known ahead of time, I would have ripped it apart.
“Do you know what it means to have over 80% stake? Now, OTK Company is nothing like Jinhoo.”
Taehyung nodded his head.
“Know. In order to continue investing in the future, Jinhoo should manage it.”
Hyun-joo’s older sister had a look of surprise.
“Are you going to invest again?”
“Huh.”
“Do you know what kind of kid’s joke investing is? This time I was lucky enough to succeed, but do you think you will be able to do it again next time?”
“No worries. Because I have an idea.”
The reason Taek-gyu is so confident is because he has a hill. The problem is that I can’t say what it is.
“Don’t you think it’s going to be ruined?”
“If you fail, you will die. It was money I wouldn’t have been able to earn if it wasn’t for Jinhoo anyway. And I removed all the 13 billion that was originally there. Even if you have that money, you won’t be able to eat for the rest of your life.”
Hyunjoo noona bit her lip slightly.
When her brother suddenly makes hundreds of billions of dollars, passing 80 percent of that to his friend, and continuing to invest, it’s only natural to react like this.
“What the hell are you two going to do?”
“·················ogue.”
I’ll be 23 in a few days.
Still, they’re ten years apart, and since I’ve seen them since middle school, they’ll look younger.
“So, sister, help us.”
“What?”
“I’ll take 3 percent of my stake.”
At Taek-gyu’s words, Hyun-joo’s older sister had an expression of no surprise.
“If it’s 3 percent…?”
“It will be about 20 billion.”
Hyun-joo’s older sister dropped her cigarette she was biting on.
Unlike Taek-gyu, who is an ordinary otaku, Hyun-joo’s sister has been a gifted person since she was young.
Although she had never received any special tutoring, she entered Korea University’s Department of Economics as a senior. She was the first woman.
She said that she was the most difficult to enter among global IBs, and she joined Golden Gate, and in recognition of her ability, she was appointed as the team leader of the Asian branch.
The salaries in the financial sector are usually higher than in other industries. Not to mention foreign IBs.
The basics start at $100,000, and bonuses often outweigh the annual salary. So, she writes Daul, trying to get a job in a foreign IB.
In the financial sector, salaries vary widely depending on individual abilities.
Considering Hyun Joo’s sister’s rank and her abilities, wouldn’t she receive at least 300,000 to 500,000 dollars?
Although her ordinary office worker receives a huge salary that is hard to imagine, 20 billion won is a shocking amount for Hyun-joo noona like that.
But she made her offer to pay that amount.
She said, “Your sister works at Golden Gate, so she knows it much better than we do, doesn’t she?”
“So you’re going to give me a share too?”
It was Taek-gyu’s opinion that he would distribute the shares rather than simply hiring them, and I agreed with that. Because she earned her money, she gives a share to her older sister as well. This guy is a good guy.
I persuaded with Taek-gyu.
“You are worried that I will run the OTK Company as I please with a majority stake. So, wouldn’t it be nice to be with you?”
No matter how the largest shareholder, he should not commit any acts such as embezzlement or breach of trust that may damage the company.
However, if interpreted in the opposite way, it means that you can do anything that is not illegal. In this way, there are not a couple of companies that go bankrupt because of their large shareholders.(Read more @ wuxiax.com)
Hyeon-joo noona, who was thinking while smoking a cigarette, took out a card from her wallet and handed it to me.
“Jinhoo, go out and buy me some coffee. Add a shot.”
You could make it with your coffee machine at home, but does that mean you’re asking for a seat?
“Yes.”
I took the card and went out of the house. Then I went to a nearby coffee shop and waited.
After about 30 minutes, I texted Taek-gyu.
[How are you?][I’m persuading you. wait.]I kept waiting.
After a while, the tok came.
[Are you asking if I should quit the company?][Tell me not to quit.]At Golden Gate, a global IB, you can get a lot of advanced information that ordinary investors cannot access. It is more advantageous for us if Hyunjoo noona continues to work at Golden Gate.
About 10 minutes later, a reply came.
[it’s over. come in.]I bought coffee and went home. As if the conversation ended well, Taek-gyu had a bright expression on his face.
“My sister decided to help.”
As I was afraid to sit down, Hyun-joo noona handed her card to Taek-gyu this time.
“Go and buy some cigarettes. Dunhill 1 millimeter.”
“Why don’t you tell me when you go out after Jin-hui…… Yep! I will go.”
When Hyeon-joo’s older sister shot him, Taek-gyu grumbled but took her card and went out of the house.
When there were only the two of us left, I asked Hyunjoo noona.
“Are you really helping?”
Hyunjoo’s older sister said as she drank her coffee.
“If you give me 20 billion won, there is no reason to refuse. If I said I wasn’t going to help anyway, you said you were going to save someone else?”
I smiled mischievously.
“I do.”
I wouldn’t have given that person a share.
Hyun-joo’s older sister looked at Taek-gyu’s seat.
“It would be better for me to help. And I think this is the first time this guy is trying to do something so seriously.”
It’s the first time I’ve ever seen such enthusiasm. If Taek-gyu hadn’t shown his will, he wouldn’t have even started in the first place.
“It’s Taek-gyu’s money, so whatever he does, he’ll be in his heart. The principal has already been withdrawn, so even if things go wrong later, there will be no problem in making a living. Rather…”
