" That's too exaggerated…" Reba asked,""Don't we only have 50,000 yuan now?”
"No!" Chen Wu smiled." We only have less than 50,000 yuan now. The other 50,000 yuan is still in the stock market. I don't know if we're making money or losing money."”
"Then what are you going to do to make things difficult for them?”
"Of course it's by leverage!" "Have you heard of this term before?" asked Chen Wu.”
"Never!" Reba shook his head.
"Then I'll tell you this term now. Remember it well!”Chen Wu said.
"This lever…what's the use?”Reba asked.
"Of course it's useful!" "Think about it, we…" Chen Wu thought for a moment and said.
"I'm not staying with you!" Reba answered.
Chen Wu was stunned.
In the live broadcast room, a quick viewer immediately took a screenshot of this scene.
The bullet comments were also filled with joy.
"Haha, Brother Chen Wu, you should stay with Brother Jielun!”
" I support the Rotation-Martial Couple!"
"What do you want to eat? The hot bar is mine!"
" Alright, I won't use myself as an example." Chen Wu smiled." Do you still remember the richest man in Yida, Wang Taimu?"”
"I remember, I remember, that real estate developer!”"What about him?" Reba nodded.”
" Let's take his experience when he started his business as an example…"
"When Wang Mubiao started his business, he was like many people, not having much money.”
"So he went to look for the local land.”
"In the process of getting the land, he promised to build a formal building for the local area.”
"So he got the land."
"During this process, did Target Wang owe a building?”
Reba nodded.”
"Then he took the land and went to the local bank.”
"The bank valued the land in his hands at 500 million.”
"At this moment, he said, I'm going to build a building for your local area in "Position A". The land has already been approved by your local government!”
"The bank didn't ask what the building was for, they only knew that Wang Xiang actually had a piece of land in 'Position A'.”
" Hence, they valued this piece of land in Position A at 80 million.”
"So in the bank's valuation, Target Wang, who might only have 10.50 yuan in his pocket, is worth 580,000,000 yuan.”
"After the valuation, Wang Xiangmu said,'I want to develop the land, but I don't have enough cash now. Your bank can lend me 300 to 500 million!”
"The bank president was amused when he heard that!"
"The bank actually has a deposit and loan quota every year. If you don't reach the quota, you won't get a year-end bonus!”
"Target Wang said 300 to 500 million…The bank can't give him 300 to 500 million, but 130 million is possible!”
"Why can the bank lend 130 million yuan to Mr. Wang? That was because the net worth of the king's target was 580 million!”
"Why? Because he has the land in his hands!"
"Your target is getting a loan from the bank today. It's okay, I'll lend it to you!”
"But other than the principal, you still have to pay interest. If you can't exchange it for money…Hmph, I'm sorry, the bank will confiscate your land!”
"No matter what, the bank will not lose money!”
"Therefore, the loan from Wang Xiangmu was approved very quickly.”
" In this process of continuous borrowing…Wang Xiang used the 'leverage' twice.”
"The first time, he agreed to build a building and got a piece of land!”
"During this process, he used this building that doesn't exist yet as collateral to obtain a piece of land.”
"Then this building that doesn't exist for the time being is Wang's personal property. This building is worth tens of millions. He used these tens of millions to obtain a land worth 500 million.”
"500 million of this, divided by Target Wang's personal property, which is that building, is a few million. Let's put it at 10 million.”
"500 million divided by 10 million."
"Fifty times!"
"This is the value of the first leverage!”
" The second time, he didn't have this building as leverage. He only had two pieces of land at a price of 580 million. He used this as collateral and borrowed 130 million.”
"130 million divided by 580 million is the leverage this time, 0.2241.”
" Now, do you have a general understanding of leverage?”Chen Wu asked.
"But he didn't pay, right?" Reba frowned. When he asked for the land, he didn't give him a building!”
" Alright!" Chen Wu nodded." It was just a time difference!"”
"Time difference?"
"In the financial industry, there is another thing to pay attention to-time is money!”
"What do you mean?" Reba asked.
" Let me give you an example to help you understand…" Chen Wu thought for a moment."I want to buy a cell phone now, but I don't have enough money.”
"A similar phone costs 2,000 yuan, and I only have 500 yuan now, so I'm asking you to lend me 1,500 yuan.”
"You lent me money."
"I bought a cell phone and used it to play mobile games. I earned 2,000 yuan in half a month.”
"Half a month later, I returned 1,500 yuan to you, but I still have 500 yuan in my hands.”
"What happened in the past half a month is money. It's the 2,000 yuan for the phone!”
"Do you understand?" Chen Wu looked at Reba.
Reba was in a daze and didn't dare to say whether he understood or not.
"I understand!" Xiao Ju exclaimed.”
"So the lever is a virtual symbol. It's a multiplication sign!”Xiao Ju smiled happily like a 1.59-meter-tall child.
"So you understand now…" Chen Wu grinned.
Liu Yifei couldn't help but laugh.
Zhou Jielun shook his head.
This child was really hopeless!
"Now, you should have the most basic understanding of the financial industry, right?”Chen Wu asked.
Zhou Jielun nodded.”
"Be more precise!" "You must add some words to this matter, or else it won't be right!" said Chen Wu.”
"Then what should I say?" Liu Yifei looked at Chen Wu with interest.
" Finance…" Chen Wu slowly said,""It's an industry that optimized the efficiency of capital utilization!”
"And you're using other people's money to earn money for yourself!”
This book is provided by FunNovel Novel Book | Fan Fiction Novel [Beautiful Free Novel Book]