CH170 - Coven of Vampire

"Going public?"

This topic took Evelyn by surprise.

She glanced at Ethan and then said with a smile, "Oh, Principal Fred, if my understanding is correct, I believe our company doesn't yet meet the criteria for going public, does it?"

"Ethan, I remember you telling me that to list on the New York Stock Exchange, we must meet several conditions, and we fail to meet quite a few of them, right?"

She tossed the question to Ethan.

Ethan nodded vigorously and said, "Yeah~"

"Principal Fred, although our company's revenue meets the requirements of the NYSE, our company's registration period falls short, and that's a significant obstacle..."

While the American stock market is known for its low entry barriers and strict exit policies, not all companies qualify for listing. It has specific standards, and in that era, one of the hard criteria for listing on the New York Stock Exchange was that the company had to be established for at least three years. Just on this point alone, Destiny Game didn't qualify.

As for other aspects...

Ethan admitted, just as the old principal said, that they were indeed a premium enterprise.

Because the current NYSE requirements for applicant companies' revenue state that over the past three years, the pre-tax income must total at least ten million dollars, with at least two million dollars in revenue in the last two years.

And Destiny Game...

The North American revenue from "Pac-Man" alone had already exceeded the overall standard by double.

Not to mention "Star Wars" now, which could easily surpass it by four or five times.

"Oh— you two really are—"

Could Evelyn and Ethan's back-and-forth really fool Fred Terman, this shrewd old man?

When the siblings stubbornly clung to the excuse of not meeting the standards, Fred Terman already understood their thoughts. Waving his hand, the old principal laughed helplessly.

"You two wouldn't think I came here as a lobbyist for those Wall Street guys, would you?"

"Oh— why would you think that?"

"Whether to go public is for you to decide. I'm just passing on a message from some friends..."

Under the old principal's explanation, Ethan and Evelyn finally understood the whole story.

It turns out, as the American public went crazy for "Star Wars," Destiny Game also became the focus of many studies, with the most fervent of these being Wall Street investment banks.

Investment banks, or "invest banks" if tracing their origins, date back three hundred years.

At the end of the Revolutionary War, the federal government was in shambles, saddled with nearly thirty million dollars in debt due to the war, and with a wide variety of currencies circulating among the public. To salvage the fragmented finances, then Secretary of the Treasury Hamilton had a bold idea: to issue new federal bonds guaranteed by America's credit to repay various old debts.

This action would be quite standard in the 21st century, as Ethan clearly remembered that before his time travel, America had raised its debt ceiling for the 78th time, pushing the total debt to 31.4 trillion dollars. But three hundred years ago, such an act was audacious, leading to a surge of brokers helping bridge financing between the American government and private investors.

This was the origin of investment banks.

With the steady issuance of bonds, America's economy revitalized, further promoting the robust growth of the capital market. When industrial developers needed resources for mining, transportation, and energy drilling, the concepts of joint-stock companies and public fundraising (IPO) truly emerged.

Since then, finance has become the real power coursing through America's veins. Financial magnates, who started by underwriting bonds, stocks, and various notes, and amassed wealth and connections, began to influence world history. The most classic story is Morgan forming a massive consortium in 1900, controlling 65% of America's steel production.

This feast of pricing power came to an abrupt halt in 1933 when the Banking Act mandated the separation of investment and commercial banks. Commercial banks were prohibited from underwriting issues, and investment banks couldn't accept deposits, leading Morgan to spin off its investment division into Morgan Stanley, followed by Goldman Sachs, Lehman Brothers, and others, focusing on investment banking, marking the advent of modern investment banks.

"Once these investment banks could no longer accept public deposits, equity financing, bond financing, and mergers and acquisitions became their main sources of income..."

Principal Fred Terman said with a smile, "When investment banks engage in these activities, they charge a commission based on the size of the transaction. For instance, if a company raises one hundred million dollars, at a rate of two percent, they earn two million dollars in fees."

"As for why they're eyeing you..."

"Just as I said earlier, you've been doing too well."

"Your business is so impressive that it's caught their interest."

"So... Morgan, Goldman Sachs, First Boston, Lehman, Merrill Lynch..."

"They've all been asking me about you."

At this point, Fred Terman turned his gaze to Ethan and said, "Although Destiny Game currently doesn't meet the NYSE listing criteria, the NASDAQ next door could easily welcome you. Their criteria only require a company to have two years of operational history to list."

"If I'm not mistaken, Santa Clara's Intel went public on the NASDAQ in '71, right? Without a product, they even managed to raise eight million dollars."

"Now, if we were to throw Destiny Game into the mix..."

At this, Fred Terman fell silent.

Although he chose silence, Ethan could guess the continuation.

When Intel, with barely any credentials, could raise nearly ten million on NASDAQ, Destiny Game, with millions in cash reserves, could not possibly be valued at less than five hundred million!

Even with the most conservative estimates, its scale couldn't be smaller than Apple in Ethan's previous life!

Raising one hundred million was commonplace, and two hundred million wasn't out of reach, and even then, those waving dollars to buy shares could fill the entire Pacific Ocean!

When the wind of pursuit arises...

Those Wall Street financiers could easily earn substantial commissions!

And this...

Was essentially like picking up money!

"So, what's your take on this?"

After leaving the old principal's office, on the way back, Evelyn, leaning on the passenger seat, said, "We've caught Wall Street's attention? Wow—this is really good news, isn't it?"

Her cheeks bore a smile, but her tone was exaggerated.

Such an expression, if placed in a stage play, could even win a Tony Award.

Because she conveyed sarcasm to perfection.

Ethan did not immediately answer but instead asked, "What do you think about this?"

Before his question fully settled, a brash voice burst out—

"Son of a bitch!"

This exclamation vented Evelyn's inner rage and made Ethan burst into laughter.

Indeed!

From the moment Evelyn heard the word "going public," she was not at all pleased!

Although her field of study wasn't finance, she was no fool!

She clearly understood that when they were holding plenty of cash, Wall Street's inquiry about their interest in going public was not about helping them raise funds or expand their fame. It was sheer greed, eyeing to share their massive profits!

And this...

What's the difference from outright robbery?

"MFxxk!"

The girl slammed her hand on the car door handle, "Ethan, do you know? I was in a good mood when I came here!"

"But when Principal Terman mentioned that Morgan, Goldman Sachs, Lehman, Merrill Lynch were all eyeing us, I felt a flame raging in my chest! Burning me up inside! My throat smoking!"

"Have these people gotten too used to sucking blood?"

"To pose such a foolish question to us?"

"And Principal Terman!"

"Why would he relay messages for these people?"

Evelyn was furious!

"Star Wars" had just exploded in North America, and these parasites swarmed like maggots smelling blood? This is truly disgusting!

And her outrage made Ethan glance at the rearview mirror.

Noticing that the girl did nothing more extreme than cursing and slapping, he slowed down the car and said, "Oh~ my dear sister~"

"In situations like this, we should be happy."

"What? Happy? Are you out of your mind?" Evelyn immediately turned her head, her eyes wide as saucers.

Ethan, however, simply chuckled and shook his head, "My mind is perfectly fine."

"The reason I say this is because our success has been recognized by the top echelons of interest groups in North America. When Wall Street starts paying attention to us, making proactive contacts, it signifies that we've garnered profits even those 'elites' are jealous of."

"Shouldn't we be happy when such a thing happens?"

Ethan's words made Evelyn roll her eyes.

The girl couldn't be bothered with him.

Because they were talking about two different things.

She was disgusted by the elites' envy.

Whereas Ethan implied that the elites' attention was an endorsement.

Totally missing each other's points!

Ethan didn't mind these details and continued, "Although it's distasteful, I don't think you need to be so angry because going public or not is not up to them to decide, but us."

"As long as we don't want to go public, nobody can force us."

"As for Principal Terman..."

"I think he meant well."

"He's reminding us to be cautious in the future because those eyeing us might not only be our current competitors but also some greedy maggots..."

Indeed, Ethan initially found Wall Street's inquiry somewhat disgusting.

Or rather, being from a finance background in his previous life, he knew that enticing them to go public was just the first step. Next, they could extract profits through public shareholding, media shorting, bullish bets, and a series of other strategies.

But after reevaluating the whole situation, Ethan realized that those Wall Street wolves posed no immediate threat because the choice to go public was entirely voluntary.

Companies like Koch Industries, Mars Incorporated, Cargill, Bose...

These were globally renowned non-public companies.

When they can thrive without external funding, even the mighty Wall Street can't threaten them.

So, Wall Street wants to ask if they're willing to go public?

Let them ask!

Are they envious?

Let them be envious!

As long as they themselves don't go public, they are invincible!

As for what others think?

What does that have to do with them?

However, even so, Ethan still muttered to himself—

'Dammit!'

'These valueless creatures are truly a coven of vampires!'

TL/n :-

To qualify for listing on the New York Stock Exchange (NYSE), a company must meet certain criteria. Here are the key requirements:

1. Shareholders and Shares:

The company must have at least 400 shareholders who own more than 100 shares of stock. It should have 1.1 million shares of publicly traded stock.

2. Market Value:

The market value of the company's publicly traded shares must be at least $40 million

3. Application Process:

The NYSE listings process involves four steps:

4. Choose Your Market: Select the appropriate market (NYSE, NYSE American, or NYSE Arca) based on your company's size and issue type.

5. Reserve Your Ticker Symbol: Choose a unique ticker symbol for your company.

6. Submit Your Application: Contact the NYSE to get information about the process and file the necessary forms.

7. Select Your Designated Market Maker (DMM): Your DMM will facilitate price discovery during market opens, closes, and trading imbalances.