The Founder of the Great Financial Family

Chapter 118 (2)

Ricardo could roughly guess what that was.

Both could yield high profits, but they were definitely different in terms of risk.

"Something that can never fail and... something that could fail. Is it something like that?"

"Exactly. On one hand, as the scale grows, the risk seems relatively smaller, and it is possible to generate a more certain profit. On the other hand, the risk is so great that it is very difficult to expect a certain profit. The fluctuations are too large."

Rockefeller's question continued.

"If both can yield high profits, which one would you prefer?"

"Well, I'd prefer the stable one."

Only then did Rockefeller show a deep smile.

"That's why I'm not interested in direct trading ship investments. People who aim for a windfall will take care of that gamble anyway, and I just need to trade as safely as possible with those people."

The point was the risk.

Although trading ship investments were so hot that Ricardo was tempted to invest again, he had no choice but to side with Rockefeller when it came to stable profits.

"I have a fickle mind. While I think Rockefeller's view is right, I'm still somewhat attracted to the trade ship investment with its potential for a big payoff."

Rockefeller still had a smiling face.

"Do you like gambling?"

Ricardo couldn't answer the unexpected question.

To Ricardo, Rockefeller began to speak about his own thoughts.

"Oh, of course, I won't just do loan business here. I am also a money-crazed guy, so I can't be satisfied with just loan business."

The biggest profit for a banker was the loan business.

But Ricardo was curious about what other business he was planning to do since he said he wouldn't just do that.

"Are you preparing for something else?"

"Yes, but it's not a direct trading ship investment."

"Then what are you preparing for?"

"Isn't trading ship investment quite hot here?"

"Yes, it is."

"Then, wouldn't it be good to proceed with a business that matches it?"

"I don't know what business it is. I can't grasp it."

Rockefeller talked about what was happening here.

"From the beginning, trading ship investments were not done alone by individuals because the investment amount was too large."

As Ricardo knew this content, he nodded and showed a convincing appearance.

Rockefeller's words continued.

"At first, there was an unlimited liability, where an individual invested everything and took all the responsibility. However, this had a high risk, so limited liability was created. As the name suggests, investments are divided and the risks are shared."

What kind of business was Rockefeller thinking about?

Ricardo began to try to find the answer from his words.

"But there is one problem here. You need to share the profits as much as you invested, so you need a way to indicate this. From here, securities indicating that right came out, and the investors will share them according to their investment. When the ship returns later, you will need proof of how much you invested, right?"

"That's right."

"But this security is a certificate of investment rights somewhere. When an investor withdraws his investment due to personal circumstances and tries to change it back to money, a problem arises. If the necessary investment funds are collected and some of the funds are withdrawn, there will be a problem in proceeding with the business, right?"

"Of course, there will be a problem. The shipbuilding cost and the salary to be paid to the crew are already fixed."

"So the empire allowed the securities to be sold to other investors instead of changing them into money. This way, the investment funds are preserved, and the ship can sail as planned, and the investors who need urgent money can sell the securities they had to others and collect money."

Rockefeller asked.

"Is this place Black Label where such securities transactions are possible? Since it's such a place, I can think of an interesting business that I can't do anywhere else."

"What specific business are you talking about?"

"Didn't I say? The empire has allowed securities transactions between individuals. Then, where are those securities transactions usually done?"

As far as Ricardo knew, there was no official place to buy and sell securities.

Most of them were in the form of passing them on to others through acquaintances.

"Was there such a place? I thought it just ended with personal transactions."

"That's right. There is no such place yet. It's just that when someone you know wants to buy it, you sell it to them. Or someone your acquaintance knows. It was like this."

Rockefeller continued with a subtle smile.

"So, people would think that securities transactions are quite cumbersome. Even if you want to quickly dispose of the securities you have, you have no idea where to find someone who wants to buy them. On the other hand, those who want to buy securities are also puzzled about where to buy them."

Ricardo finally understood the business he was planning.

"Are you thinking of opening a place where securities transactions can be made easily?"

"You finally guessed it. Yes, that's right. What's missing here is a stock exchange. The system itself is so inadequate that even though securities have emerged, the exchange has not yet been created. But as securities transactions become more and more active among people, the demand for a place to trade them comfortably will inevitably arise."

Ricardo showed a convincing appearance without denying it.josei

It was obvious that it would happen.

"If there is such a demand, it would be reasonable for people like us to step up and solve it, right? And of course, we have to take a small commission from the transactions that occur there. We're not digging the ground to do business."

The next words were most consistent with Rockefeller's profit-making style.

"Creating a stock exchange here in Black Label will not only make it easier for people to trade securities, but we can also benefit from the commissions we charge for the transactions. It's a win-win situation for everyone involved."

"Furthermore, the risk is zero in this case."

Read ahead by supporting me on Ko-fi. Access 5 advance chapters with the Imperial Dalants Tier ($10) or 10 advance chapters with Dwarven Sovereigns Tier ($18) or 20 advance chapters with Goblin Dollars ($35). For every $25 collected on Ko-fi, I will release an extra chapter. Choose your tier by clicking the 'Support me' button! Rate and review this novel on NU to help people find this novel. Happy reading!