On the surface, I told Albert itd be fine even if he lost the gamble. In reality, Albert needed to have sufficient stock and money to be able to utilise the thod. If he fails to get the majority of the shipyards shares in ti, hell be forced to use his shares to the shipyard to fill the gap. If he gains the rights to the shipyard, he could do as I suggested. If he couldnt, though, the price he sells the shares for wouldnt be what it currently was. In other words, Albert would have to declare bankruptcy because he didnt have enough cash to fill the gap.
The benefit of the thod was that he could instantly make enough money. The issue that plagued all of the businessn in the South was not having enough funds to continue purchasing shares. I had the impression that they didnt consider the commoners whatsoever. Indeed, commoners look poor and incapable to support the business. They werent wrong. Ordinary folk couldnt participate in business on that scale; however, their numbers were their advantage. If everyone could provide a few gold coins, it would amount to an enormous amount that businessn wouldnt be able to overlook.
That puts the most important question on the table, which was, How do we get them to support themselves? The thod I suggested to Albert was one thod; there was another thod, which was to start company bonds. Using bonds would be quite risky. You had to repay bonds. It was a thod for when you didnt have anything tangible to hold it together. The thod was overlooked far too often since ordinary folk wouldnt have spare money to buy sothing intangible. Moreover, the wealthy businessn and nobles wouldnt senselessly hand money to those they werent familiar with. That ant that it was extrely unlikely to help him collect enough money using bonds. The other issue was that a business on the brink of bankruptcy would be a poorly operated business.
A business on the verge of bankruptcys bonds would be the equivalent of garbage. Anyone with two functioning brain cells wouldnt buy those poor bonds. There were exceptions, having said that. While those bonds were rubbish, they were a high risk, high return token. Because their price would be awfully cheap, it would be possible to buy a large volu of them. Should the company be able to improve their situation and reverse their predicant, the company would repay them, thereby giving them an imnse return.
Theres one more thing. If an enterprise wants to buy out another enterprise, they can also start those garbage bonds. Those bonds would act similarly to when I utilised prospected efforts as collateral for a loan. In other words, if I start offering such bonds, it would an that if I successfully acquire the rights then I could repay adequately. To sum it up, if I cant profit, your bonds will go down the drain.
Typically, nobody would be willing to buy sothing with so much risk. As they commonly say, you have to be ntally dented to buy garbage. Nonetheless, if a big wig in the investnt world, a highly-influential figure or soone the public thought was credible were to step up, the bonds would no longer be considered trash.
Based on the circumstance at present, the reason Madam lissa was in such a hurry to ask for my help was due to her business being in dire straits; she had to essentially be one step away from bankruptcy. That explains why she, the owner of a company, would take the sa ship as commoners back to the South.
Won werent trusted in the business world. Instead, they were made light of. On top of that, the goods she sold could be easily replaced. As a result, lissas business was in a slump. Her plan was to invest her only remaining funds in a factory in hopes of reversing her situation. The problem was that factories required investnts. The investnt to get started is enormous. Further, she wasnt sure what she planned to do with the factory. My factory was only able to expand business thanks to Queen Sisi backing and holding the exhibition. Had she not provided that level of support, my factory would only be balancing expenses and inco at best.
For lissa to say that she wanted to buy shares at this point and would split the earnings would earn the ridicule of others, not to ntion being called an imbecile. The bonds she offered were actual garbage. On the contrary, if she went to the imperial capital now and declared, The reason Im offering these bonds is because the new count, Lin Dongqing, told to co. He said that he would definitely be able to acquire it, then things would be very different.
The statent would be completely brushed off in the South for the reason that the South didnt care about new nobles, nor did they know what Lin Dongqing had done. In the imperial capital, on the other hand, what would everyone, from businessn to banks, think if lissa made the sa announcent?
I was a new noble in the South, ordinary as they co noble. In fact, people wouldnt even care if I was the minister of business. Who was I in the imperial capital, though? I was the imperial capitals Demon King. The mont I was granted the mansion, people imdiately began referring to it as the Demon Kings castle. I drove every businessman in the imperial capital to the brink of bankruptcy when I was the one who was facing bankruptcy. That single statent from lissa would inform them that she wasnt exaggerating but very, very, very much likely to be true.
If I could accomplish so many things considered impossible, what was there to say that I couldnt succeed again? Plus, I could have Sisi put in a word for . She didnt need to say much; just one sentence was plenty. Also, lissa could go to the North. If she went to the North and ntioned it in my territory, then even those in Bryne City could fathom the significance of the statent. There would be no doubt that anyone with money on hand would purchase the bonds.
To be clear, having lissa go around everywhere announcing my involvent wasnt my aim. The garbage bonds tactic was just one step. The key step was collateral-based loans. The only challenge was that I didnt have a tangible product to pawn. As with any other identical situation, the only thing I could offer was my reputation. My plan wasnt to multiply my wealth with the garbage bonds. What I relied on was leverage.
Under normal circumstances, banks and enterprises would supply funds. The exception was when the businessn knew who they were talking to. They knew who was in front of them, therefore knew what to do, who to trust and who not to trust.
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