Chapter 775 - Marketable Securities Transfer (2) – Part 2
Gun-Ho continued, “That’s just an example. No one knows yet how much Dyeon Korea’s share would be once it goes public. We will see it for sure on the day when the company shares become available to trade in the stock market.”
“Why are you saying that I should sell my shares on the first day as soon as the stock market is open?”
“How many employees purchased the company shares? Most of Dyeon Korea’s and GH Mobile’s employees participated in the employee stock ownership program, right? So, it would be about 500 people. Of course, some of them gave up their opportunity to own the shares, and that’s how you could buy their shares.”
“Yeah. I don’t think it would be 500 people, but it should be at least 450 people.”
“Okay, then, say the price of the share increased. Those 450 people will compete with each other to sell their shares right away, right?”
“I think so.”
“A stock price is determined by its demand and supply. If 450 people try to sell their shares at the same time, what do you think would happen to its price? Will the price increase? Or decrease?”
“Oh, I see. The price will decrease, of course.”
“That’s why you should sell your shares as soon as the stock market is open. The trade is done digitally, and if you think you are slow with handling the computer in selling your shares, you would probably want to ask one of the staff in the stock brokerage company to do it for you. You have to sell yours before anyone else starts selling theirs once the stock market opens in the morning.”
“Bro, will you come to my office for a second?”
“Why?”
“I think I have to write down what you just said.”
“Man, I didn’t say anything difficult. There is nothing to write down.”
“I think I still have to write it down somewhere. I’m not good at stock trading stuff. I feel like I understand what you just said, but I will probably not remember it later.”
“Okay, let’s go to your office.”
Gun-Ho and Jong-Suk Park entered the plant manager’s office.
“Is he cheap?”
“Don’t get me started. If you print out a piece of paper and throw it out once you read it, you will see President Song starting out nagging at you, pointing out that you didn’t use the other side of the paper as a scratch paper. He is giving a lot of headache to the workers for a tedious thing like that.”
“Haha, really?”
After talking with Director Park, Gun-Ho went up to his office on the second floor.
His secretary—Ms. Hee-Jeong Park—brought him a cup of green tea.
“Please put the green tea on the table, and I’d like to have a cup of coffee as well.”
“Yes, sir.”
“And ask Ms. Accounting Manager Min-Hwa Kim to come to my office.”
“Yes, sir.”
When Gun-Ho was having his coffee, the accounting director entered the office.
“You wanted to see me, sir?”
“Did we receive the payment from Dyeon Korea for the machines that we built for them?”
“Yes, sir. It was 150 million won per machine, and we received 1.2 billion won in total which doesn’t include VAT (Value Added Tax).”
“They are not using the B2B payment, are they?”
“No, sir. We received the payment in cash.”
“What about the twin screws that we ordered from West Moulding Corp. in the U.S. Did they ship the screws to us already?”
“Yes, they did. We will receive 10 twin screws from them soon, and it cost us 200 million won. It’s FOB (Free On Board) price.”
“This price shouldn’t be disclosed to anyone outside the company, especially, Dyeon Korea shouldn’t know about it.”
“Understood, sir.”
Gun-Ho headed to Dyeon Korea in the afternoon.
The internal auditor came into Gun-Ho’s office carrying some documents.
“We are done with the marketable securities form, sir.”
“Good. What are those that you are carrying?”
“Oh, this is the business plan that will be used during the presentation to institutional investors. This is a copy for you, sir.”
“Are they done?”
“Yes, sir. Please review it, and let me know if you find anything that needs to be corrected or modified.”
“Hmm, this is done in PowerPoint.”
Gun-Ho reviewed the business plan.
“I see the business outline, environmental analysis… I do like what you put in the market tendency. It has good details. Good. The marketing strategy looks good too. Our financial status looks accurate as well. Let’s adjust the estimated profit and loss for the future, a little bit. We can make it sound more positive; they are just estimates after all.”
“Understood, sir.”
“Okay, it looks good overall. If I find anything to add later, I will just explain them verbally during the presentation. So, the document doesn’t have to be changed further. We will use it as it is.”
“Yes, sir.”
“How long would it take to process our marketable securities form?”
“According to the stock brokerage company, it usually takes 1 week, sir.”
“Okay.”