Lee's Iron Company and Dachu Commercial Bank have not finalized the cooperation plan for the issuance of small shares, but the Central Bank has already issued a document requiring Lee's Iron Company and commercial banks to closely protect the interests of small investors.

,No messing around.

The reason why this matter has attracted the attention of the Central Bank is because many companies have done this before and caused problems.

In order to raise funds, these companies will issue some very small shares, and then attract small and medium-sized investors to buy them at high prices to raise funds.

These are normal, but then they cause a series of problems, that is, if there are more small shareholders, then there will be more share transactions.

The targets of these scattered, small-amount share transactions are not professional investment institutions, but often individuals.

Although these individual traders hold shares, it is actually difficult for them to understand the specific conditions of their companies, and they can easily be deceived and cause large losses.

This has also triggered many economic cases, and has affected the affiliated companies to a certain extent.

For example, once some of the small shareholders in the market are eager to use money to sell their shares at a low price, it will easily cause a chain reaction, causing other small shareholders to also sell their shares. In the end, the shares will depreciate significantly and even no one will care about them... But the problem is, the way the company operates is

Good.

Finally, and more importantly, there are some bad companies whose operators deliberately let ordinary people buy their small shares in large numbers in order to make money, and then donate money and run away after making money, which is illegal fund-raising!

Nowadays, the central bank is very concerned about the large-scale scattered share transactions in the market, so when the Lee Iron and Steel Company wants to issue small shares, it directly sends a warning letter: Don't mess around, or you will be punished to death.

!

But mere warnings are of no use. After all, this situation does not exist alone, but is already common. The central bank is already wondering whether it can establish a complete system for companies to issue shares to raise funds.

It can not only protect the company's need to raise funds, but also protect the rights and interests of small and medium investors.

After all, it is a fact that a large number of companies issue small shares to raise funds, and legally, you have to let others issue shares... Why don't you let others sell your own things?

At the same time, a large number of small shareholders also have the need to trade with each other. Small investors are different from large investments and corporate investments. Those large institutional investments are strategic investments and mainly receive dividends. Even the transfer of shares is relatively small in scale.

Large institutional structure.

They all have enough professionalism to protect their own interests.

But small investors probably don’t even know where the company they directly bought the shares is located!

At the same time, they have limited funds, and they will transfer their shares to raise funds when they need funds.

These frequent small-amount share transactions have led to a large number of problems.

In addition, in this case, large investors and even the companies themselves can easily use some means to buy low and sell high, thereby harming the interests of small investors.

After all, major shareholders must clearly know the situation of their own company, and even know what the company will do in the future.

If the company has major benefits in a few months, then he can use this information in advance to absorb the shares of small shareholders to make profits.

On the other hand, if the company is not doing well and is incurring losses in a few months, he can also use the information to transfer shares to others in advance to cash out and leave.

This kind of major shareholder and business operator personally participates in small share transactions, which naturally occupies an absolute advantage.

This will inevitably greatly damage the interests of small and medium investors.

It will also destroy the entire stock trading market and cause many unnecessary problems.

Finally, and the most important thing is to collect taxes!

Although currently, tax laws also charge taxes on share transactions, they are only collected when changing share registration, which is troublesome, and the amount collected is not much...

For this reason, the tax department has submitted suggestions to the finance department many times to ask them to regulate stock transactions so that they can collect taxes. Otherwise, if you don't do it, our tax department will have to set up a tax registration for stock transactions.

That’s it…

To this end, the Central Bank, as a financial regulatory agency, has planned to set up a special agency for share transactions. The official will supervise the transactions and limit the qualifications of enterprises. Do not allow any enterprise to issue shares to the public at will.

People buy it, causing a lot of illegal fund-raising and escaping.

The idea of ​​the Central Bank was quickly turned into a document and passed to the Finance Department. However, this was the first time for the stock exchange to do this kind of thing, and the top management of the Finance Department did not dare to make decisions without authorization, so they continued to report the matter.<

/p>

Finally, it was sent to Luo Zhixue’s office.

When Luo Zhixue saw the Ministry of Finance's petition to establish a stock exchange to standardize and supervise corporate fund-raising and stock trading to protect the interests of small and medium-sized investors, avoid large-scale illegal fund-raising, and increase financial taxes.

Luo Zhixue was dumbfounded... He must know about stocks. He also thought about setting up a stock exchange when the time is right.

But he didn't expect that the officials below him would actually bring it up before he told the public about it.

This also allowed Luo Zhixue to once again see the inertia of historical development.

Even if Luo Zhixue doesn't bother with many things, they will emerge on their own when the time is right.

The previous iron-ribbed wooden hull battleships are a very typical example. This thing was first proposed by the Navy's Ship Administration Department. Luo Zhixue didn't know until he saw their initial design plan that the Navy people actually planned to build iron-ribbed wooden hull ships.

.

The reason why the Navy built iron-ribbed wooden hull battleships was because the Daye Iron and Steel Company's wrought iron mass production technology had achieved a breakthrough. The output of wrought iron increased significantly and the price dropped. At the same time, the Dachu Empire's industrial sector also had the ability to process large-scale

Wrought iron parts capabilities.

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Coupled with the lack of rib wood, the Navy had to look for alternatives.

Putting all these together, without any reminder from Luo Zhixue, the Navy would have thought about iron-ribbed wooden hull ships first.

Even Luo Zhixue felt that if it weren't for the fact that the price of iron was relatively high, the power of potential enemy artillery was only that low, and the wood used for the wooden shells was easy to find, the navy would probably have proposed a plan to build an all-iron warship.

When he thinks about the possibility of a sailing battleship built entirely of iron, but also using sails and front-mounted smoothbore guns... Luo Zhixue himself feels particularly awkward.

This is inconsistent with his common sense.

However, this is the natural driving force brought about by the continued development of technology and society.

This is true in the shipbuilding industry, and it is also true in the financial industry.

In fact, many of the current rules and even laws in the financial industry in the Dachu Empire were not created by Luo Zhixue himself... He is very busy, and he has no time to focus on the financial industry every day.

That is to say, Luo Zhixue paid more attention to it at the beginning, but it was only in the early days. Even in the early days, Luo Zhixue did not participate in some detailed developments of the financial industry.

He always specifies the framework, finalizes the general financial strategic plan, and then leaves it to his officials to toss about.

Specifically, he probably established the Ministry of Finance, then the Finance Bank and the Central Bank, and set some basic principles for financial supervision.

As for the follow-up, basically let nature take its course and let the Finance Department handle it.

The Finance Department has continued to improve the rules and regulations of various financial industries over the past ten years and established a relatively primitive but relatively complete financial system.

The most important of these is the improvement of currency and banking.

The currency mainly adopts the abolition of the two reforms to the Yuan, the establishment of the concept of Chu Yuan, and the large-scale issuance of various silver coins and copper coins. In addition, more importantly, the introduction of corresponding banknotes.

As for the banking industry, they came up with a series of concepts for savings banks, and finalized the basic businesses of banks such as collecting deposits, granting loans, and exchanging exchanges. They also finalized the margin system and, most importantly, strictly prohibited banks from participating in various commercial investments.

Not to mention financial investment.

These are all to ensure the safety of depositors' funds.

But at the same time, the Finance Department has guided the establishment of a number of fund companies. These fund companies can raise funds and then participate in various types of finance, mainly investing in various enterprises to make profits, so as to allow funds to flow in the market.

There are many other things, which are basically created by officials of the Ministry of Finance based on changes in the market economy and the political needs of the empire.

The same is true for the stock exchange this time.

The Finance Department discovered that a large number of companies issued small shares in the market, and also discovered that a large number of small shareholders conducted frequent transactions.

This means that a large number of companies need a way to raise funds other than loans. It also means that there are many people in the market who have a lot of money and want to invest, but it is difficult to participate in real business operations because of limited funds.

Go.

In other words, the trading behavior of small stocks has strong market demand. It is not only needed by enterprises, but also by large investment institutions. Even small investment institutions, that is, individual investors, also need it.

However, this market demand has not been guided correctly, and a series of problems have arisen.

Now the Ministry of Finance’s idea is very simple, that is, to bring this market demand into official supervision and formalize the trading of these small stocks.

In this way, it is convenient for companies to raise funds, and it is also convenient for investors, and it can also reduce the situation of investors being deceived to a certain extent.

The most important thing is that it can also revitalize the existing idle funds in the market and provide additional assistance for the industrial and commercial development of the empire.

If industry and commerce want to develop, enterprises need funds, and they cannot simply rely on bank loans.

Based on this situation, the Ministry of Finance will finally request the establishment of an officially governed stock exchange based on the recommendations submitted by the Central Bank.

After Luo Zhixue read the report of the Finance Department in detail, he quickly gave instructions and approved the establishment of a stock exchange. However, he had to control the pace and not go too far all at once. He had to test one or two first, and then perfect the experience.

After all the rules and regulations are implemented, and then rolled out on a large scale, there will be no trouble.

With Luo Zhixue's approval, the Finance Department quickly finalized the corresponding charter and prepared to establish a stock exchange in Jinling City, which would be directly under the jurisdiction of the Finance Department.

The rules and regulations of the stock exchange have been strictly formulated for the time being to avoid too much trouble.

Under such circumstances, with the establishment of Jinling Stock Exchange and the listing of corresponding companies, stock trading rules have become very strict.

The first is enterprises. We will not accept applications from enterprises for the time being. Instead, we will first select a number of large-scale enterprises with sufficient strength to be listed, and the number is not large. It is tentatively determined to be five, four of which will be government-run enterprises affiliated to the Ministry of Industry.

, and another enterprise is tentatively designated as a private enterprise.

At the same time, the industry to which the enterprise belongs should try to choose a low-risk industry, one that has made stable profits for many years, and the enterprise itself has matching actual assets.

They want to select a group of high-quality companies for listing, and they also want to ensure that even if the listing goes wrong, investors will not suffer too big a loss after buying the stocks.
To be continued...