Free Web NovelChapter 1879: Chapter 1866: Freshmen Welcome (Part 4)
The stock market is counterintuitive. When people enter the stock market, they often hear that you shouldn’t chase gains or panic sell. That means you shouldn’t buy a stock just because it’s rising sharply, nor should you sell off your shares in fear of further loss when the price drops immediately after buying. Even if you want to hold onto them long-term, sometimes the major investors will endlessly test your patience, suppressing a sector for months or even years, forcing you to sell at a loss. Then, they will take advantage of your exit to buy at low prices.
But, hearing is one thing and doing is another. Who can resist the temptation when a stock surges wildly? Who can withstand the long-term frustration of continued decline and loss? It’s not just a test of one’s vision but also one’s mentality. After all, who enters the stock market without greed? It’s simply human nature.
However, the stock market is also highly sensitive. If there’s a war breaking out in the West today, the international oil prices might surge as soon as the news comes out. If the weather forecast predicts a harsh winter this year, then on that day, cotton and down clothing will respond immediately.
Bo Yan had already prepared for the executive to file a real-name report on Bosch’s fraudulent financial statements. Of course, the executive was an old acquaintance of Bo Yan’s father, but mere connections weren’t enough to persuade him. Bo Yan also offered him a generous reward.
As soon as the news was reported, the online influencers he arranged started stirring the pot. He didn’t want to escalate the situation, so he didn’t follow up aggressively on Twitter, but the Nasdaq officials noticed the news, and insiders with a keen sense of information started to make arrangements.
Bo Yan had been prepared with short positions, just waiting for the price to drop. At this point, the matter hadn’t been confirmed, so although it had caught some people’s attention, the previous situation was good, and the bulls also helped to prop up the prices.
The two sides went back and forth, and at the beginning, the bulls even managed to regain the upper hand.
However, as the situation escalated, almost an hour after the real-name report, the stock price began to plummet.
Fraudulent financial reporting is a very serious offense anywhere, serious enough for executives to be jailed or for the company to be delisted. When the company failed to issue a statement immediately after the news, it was already a tacit acknowledgment. Moreover, unlike the domestic A-shares, the U.S. stock market doesn’t have a price limit for a drop. Theoretically, U.S. stocks can drop to zero.
Bo Yan and Xia Youbiao, who had been watching from before, saw the price curve smoothly sliding down. Within just half an hour, the stock price dropped by twelve percent. At this point, the company finally issued a statement, saying they were handling the matter, reserved the right to sue the whistleblower, and would pursue legal responsibility for those spreading rumors.
It appeared as though they were threatening a lawsuit, but didn’t firmly deny the allegations.
With this news, the bulls weren’t tangled anymore, and the stock price plummeted further. By the time the market closed, it was five in the morning, Han Yifan had returned next door, Xia Siyu was already dreaming, and Bo Yan had packed up, freshened up, glanced at the data by his bedside, and saw a twenty-three percent drop.
Moreover, this twenty-three percent drop was under his control. If he had involved Wall Street venture capital as he initially planned, the stock might have dropped at least by a third overnight.
He wasn’t worried at all; he didn’t withdraw his positions but rather increased them. Because no one knew better than him that this report was true, Bosch indeed falsified their financial statements. And it’s not just as simple as financial fraud; Bosch is essentially a bubble, and falsifying the reports is just opening a wound exposing more issues inside.
He closed his computer and quietly returned to the room. Xia Siyu was still sleeping; he gently lifted the blanket and slipped in to rest.
He’s lazy to deal with the aftermath and has no mood to care. Let Bo Qiliu and Bo Yi handle it.
**
While Bo Yan slept soundly, a storm indeed ensued due to the incident.
Bo Qiliu was sleeping soundly at night when the phone call shocked him awake. The call also went through to Bo Yi, who upon waking was seen by Xia Sicai, but she ignored it. Or rather, she was already chatting on her phone, not with her husband, but also plotting in this game.
Of course, Bo Qiliu and Bo Yi knew about this. During the New Year, they dared not disturb the senior Mr. Bo. This matter of financial fraud was naturally to be hidden from him—hidden from him, from a small portion of shareholders, and investors.
So, their PR team issued a vaguely worded statement, hoping to control public opinion, but unexpectedly, it had the opposite effect, and the stock price kept plummeting.
Moreover, it’s impossible to hide the news from the senior Mr. Bo. Although they themselves didn’t disturb him, naturally, board members contacted him. In the middle of the night, at half-past three, the senior Mr. Bo sat up in bed with a furious look; he already had trouble with his mobility, and this anger worsened his condition.
However, for some reason, upon hearing the news, besides anger, he wasn’t particularly surprised. Although he wasn’t aware of the financial fraud, he had an inkling that the company indeed had problems. ƒree𝑤ebnσvel.com
Once he saw Bo Qiliu and Bo Yi come out, Bo Qiliu still wanted to conceal, but the senior Mr. Bo snorted heavily: "You can hide it from me, but you can’t hide it from the stock market! Now is not the time to hide; you must think of a solution quickly!"
But if Bosch were listed domestically, it’d be fine; overseas, they had never faced such problems before, hampering their efforts. Even if they wanted to inject capital or save the market, how to save? It’s the first day of the New Year, early morning; sending money abroad faces national capital restrictions. Even without restrictions, they couldn’t gather such an amount of money quickly. During the New Year, many board members weren’t even in Yancheng, and some were still asleep, uncontactable, unable to discuss.
Moreover, no one knows better than them that the report’s content is true; they indeed committed fraud. The foreign stock market values such matters greatly; such a scandal could lead to a stock price halving at best or delisting at worst. However, that’s still not the biggest issue.
Initially, they expanded too quickly over the past two years; their cash flow was already insufficient. If this problem arises, it’s equivalent to overdosing on poison prematurely, essentially a death sentence.
What now? Counting the individuals involved, maybe one would have to be scapegoated due to fraud responsibility, possibly even facing jail time.
Normally, Bo Qiliu and Bo Yi are very proud, especially during their glorious last year, eager to purchase everything around. But at this moment, the father-son pair’s eyes were filled with fear. The senior Mr. Bo vaguely sensed something and asked Bo Qiliu: "What’s really going on?"
