Since the village has been heavily criticizing the “Long Character Generation”, the stock market has fallen into a prolonged slump.
The village is definitely looking out for you,
blindly speculating on hot stocks will ultimately lead to losses,
and then there will be complaints.
Yes, it is definitely for your own good, to protect you, to protect you well.
Don’t be confused about the roots of the chives~~
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Today, a major incident has emerged in the industry,
to avoid suspicion, my cousin has omitted the name of this listed company.
In February 2021, Company D launched an employee stock ownership plan. This company is considered quite good in the industry, with a reputation for small growth, and at that time, the stock price was at an all-time high.
The chairman announced that to encourage employees to participate actively, if the annualized return was below 8%, he would guarantee a return plus an additional 8% interest.
This got the brothers and sisters working in the factory excited,
Wow, chives are really falling from the sky.
Let’s not even mention the boss’s promise to guarantee returns; just looking at the +8% high interest, the factory workers couldn’t wait to offer their loyalty.
The employees went wild, with 1,411 chives participating in the employee stock purchase plan, thinking the boss’s promise was definitely reliable. (Note: At this time, the company’s stock price was at an all-time high).
However, with the brokerage’s persuasion, they doubled their leverage, purchasing 34 million shares at a total cost of 2.7 billion, with an average contribution of 1.96 million per person.
Among these employee shares, 15 million shares were transferred from the company owner to the employees, and the owner cashed out a total of 807 million yuan.
The subsequent events turned tragic, as the stock price plummeted, having already halved since the day the employee stock ownership plan started, with a floating loss of -54%.
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Previously, my cousin had readers asking me about similar guaranteed interest operations by their company owners, asking for my opinion.
This kind of question is actually hard to answer, just like when readers ask whether they should hold a certain stock.
If you tell them to hold, and they make money, they will definitely forget about my cousin when they are drinking.
If I tell them to sell and the stock drops, they certainly won’t be grateful and will have forgotten me long ago.
However,
if they sell and the stock skyrockets,
they will definitely curse my cousin while watching the continuously rising stock.
Therefore, for similar questions, my cousin is now very cautious in answering.
As for readers asking whether they should participate in the stock purchase,
I always tell them,
only trust state-owned enterprises and large state-owned companies; be more cautious with others.
Because state-owned enterprises basically won’t reduce their holdings, and even if they do, it won’t go into private pockets,
only a fool would do something without benefit.