Wall Street bigwigs!
Chapter 15 Deduction Scheme
Green smiled, picked up a pack of Zhonghua cigarettes from the table, lit it, and spoke with a relaxed tone amidst the swirling smoke.
"Born, put aside all the technical analysis, my bullish view on investing in Nike isn't solely based on its technology; that's only a small part of it."
Green skillfully shook the cigarette in the ashtray and adjusted his sitting position to make himself more comfortable.
"Do you have NBA clients among your customers? Or do you follow the basketball market?"
Upon hearing this, Born shook his head slightly.
He's so busy every day that he doesn't have time to watch the boxing match between the black guy and the drug addict; that's not in line with the style of an elite lawyer like him.
"Perhaps you can start paying attention now; it's a huge blue ocean market."
Have your assistant prepare a detailed financial report for NBA players.
Although they may look like barbarians, they are actually among the wealthier groups, though most of them are financially clueless.
Green's words did indeed remind Born that a blank slate is good; he needed clients who were like blank slates.
Born instructed his assistant to quickly write this down in the memo so that he could continue to follow up.
Green not only gave his wife a high-paying job, but also helped her explore uncharted territory.
"Going back to the previous topic, did your wife Vera believe in the concept of irreversible trends when she was in finance?"
Nike's distribution channels have now expanded to Europe, and its market share among young people in the United States has increased for three consecutive years.
For companies with strong fundamentals, a decline is only temporary.
At this point, Green paused and added, "And its circulating supply is just right for my capital size."
Losing 800 million won't attract regulatory attention, and I can easily sell during a rebound, perfectly matching your proposed tax plan.
Born was completely convinced.
He reached for the contract and quickly signed his name at the legal representative's office.
"Mr. Green, for subsequent loss-making operations and closing positions on rebounds, do you need us to provide compliance documentation?"
"No need!" Green picked up his pen and signed Green Walker on the contract with sharp handwriting.
"I will handle the transactions myself. I want the IRS to see a fully compliant and logically consistent investment loss, rather than any signs of deliberate tax avoidance."
Born's assistant was taking notes quickly, and with the rustling sound of the pen gliding across the paper, he felt that Green was full of confidence.
Green pushed the signed contract to Born and tapped the table lightly with his fingertips.
"The contract is in effect, and I will transfer $3.5 to SATA's account tomorrow."
Also, please tell Ms. Vera that I'm waiting for her to come to the position of CFO at R&F Financial Holdings.
Born felt a warmth in his heart, stood up and shook hands firmly with Green: "She will come."
Sunlight streamed through the coffee shop window, falling on Green and seemingly gilding the young man, who was about to shake up Wall Street, with a golden armor.
And this tax game concerning an 800 million yuan loss has only just begun.
On December 22, 1987, three days before Christmas, the trading floor of the New York Stock Exchange was filled with the lazy atmosphere of the year-end.
Green sat in front of the Bloomberg terminal in his apartment, his fingertips tapping on the keyboard. On the screen, Nike's stock price curve was slowly declining along the trajectory he had predicted.
According to Bonn's tax plan, he needs to complete the settlement of $800 million in capital losses within three days.
Green sold 1575 million Nike shares at $5.08 per share. As for where the shares came from? They were borrowed from institutions, of course.
"Mr. Walker, we have completed placing our orders, and all sell orders have been entered into the trading system."
The voice of a trading manager from Merrill Lynch came through the phone, his tone carrying a hint of barely perceptible tension.
"Market buying is rather weak right now. Such a large sell order could drive the stock price even lower. Are you sure you shouldn't wait any longer?"
Green's gaze fell on the terminal screen, which displayed Nike's stock price fundamentals.
[Revenue increased by 18% year-on-year in the third quarter of 1987, and the market penetration rate of the air-cushioned shoe product line exceeded 25%]
There was one thing he didn't fully tell Born: the concept of personal branding doesn't yet exist in the market.
He found Nike's technology useful, but definitely not a market-leading force.
What he truly values is Jordan, a sub-brand of Nike, and an unparalleled personal brand.
"No need to wait, just leave it." Green's voice was firm and decisive.
"Tell the traders that there's no need to intervene in the market; just execute the trades at the real-time market price."
After hanging up the phone, he got up and poured himself a glass of whiskey. The Christmas lights were already on in the New York streets outside the window, and pedestrians were hurrying by.
Richard called half an hour ago to tease him, saying he must be crazy to dump stocks at the end of the year and lose 800 million.
But only Green himself knew that this move was not only to save on taxes, but also to buy up the future industry leader at a low price.
In the trading hall, Nike's sell orders poured in like a tidal wave.
The previously weak stock price was instantly hammered through the support level, falling from $5.08 to $4.92, and finally completed with an average price of $4.95.
A loss notification popped up in the securities account's trading backend: $803 million.
Bonn called immediately, his tone somewhat complicated.
"The loss amount just meets the target, and I've already had Vera prepare the tax deduction application materials. It will definitely save you $8.8 million in taxes next April."
But honestly, are you really that sure it will rebound?
"Just wait and see." Green hung up the phone and opened the registration documents of Ruifeng Financial Holdings in the drawer.
Next, we just have to wait for time to reward us.
~~~
The St. Regis Hotel's ballroom next to Central Park in New York City was packed with people on Christmas Day.
The doormen and valet parking attendants at the hotel entrance were extremely busy, with a luxury car driving into the lobby every 3 minutes.
The men who got out of the car were all dressed impeccably, their hair neatly combed, and their female companions were also dressed beautifully and wearing expensive jewelry.
Today is a high-end investor appreciation dinner hosted by Morgan Stanley. The guests are either business elites or people with great power in government departments.
Before the banquet began, people gathered in small groups, and the topics they discussed were nothing more than two: the financial market and the election.
Last year's stock market crash was a central topic of their discussion, with topics such as how much money someone made on their investments and how much someone lost after Black Monday.
Many people tremble at the mere mention of Black Monday; it's truly terrifying.
Fortunately, most people here heeded the advice of the institutional trading manager and did not redeem their funds immediately.
It's important to know that funds have a lock-up period. Redeeming during the lock-up period violates the contract and will result in a significant loss of principal on top of the existing losses.
Fortunately, the Federal Reserve injected liquidity in time to prevent the stock market from crashing, and they were able to slowly make up for their losses as stock prices subsequently recovered.
Before the end of the year, the government and financial regulators quickly introduced a series of preventative measures.
For example, circuit breakers and stricter transaction review and supervision have been added to prevent computer trading models from engaging in rampant selling without human review.
The restrictions on the leverage ratios of various financial institutions were also emphasized.
December 26, 1987, Saturday, a rare sunny day.
In the morning, Green personally drove Uma to her flight to Los Angeles. Seeing Uma's reluctance to part, Green could only try to comfort her.
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