God of Technology: Creating the Internet in Another World-Chapter 393: Stock Splits Work Too

Did the stock exchange have any rules about how many shares stocks could be split into?

They’d previously chosen to split all stocks into 4 million shares, then directly list 25% of those—1 million shares—for initial subscription, followed by releases and buybacks based on market conditions.

Now the price per share was getting infinitely close to 30 gold coins.

This price would shut out most people. But with the price already this high, what could you do?

They hadn’t considered this problem before.

But suddenly, Viscount Roster thought of an idea.

What if they split these stocks again?

Originally 100% equity was 4 million shares. He could directly split it into 40 million shares. Everyone’s stocks would still be converted by value. In other words, someone who now had 1 share would have 10 shares after the split, with the value still close to 30 gold coins.

That is, one share would go from close to 30 gold coins back down to close to 3 gold coins.

This way, whether for people who currently held stocks or for people who wanted to buy in, it would be good news.

Because it became way easier to trade.

Originally, at 30 gold coins per share, not many people could afford it. But change it to 3 gold coins? Way more people could trade.

Thinking of this, Viscount Roster directly contacted the dragons.

After hearing Viscount Roster’s words, Nidhogg the Dragon of Despair felt his dragon brain buzzing.

Yeah!

This could work.

Who said you could only list so many shares?

What about their Dragon Delivery from before?

Forcibly screening people out and shutting most people out?

Why didn’t they set the price lower from the start and split it up more?

After quite a while, letting himself calm down a bit, Nidhogg the Dragon of Despair finally couldn’t help but speak: "I think this plan is definitely feasible. Our Dragon Delivery could probably do it too. But you still need to do more careful research on exactly how to split it and come up with a plan."

"On my end, after you come up with a plan, I’ll also make an announcement on the Magic Net to ensure most investors know about this before officially proceeding."

"But I still hope you’ll treat this matter carefully, because any little disturbance could cause stock prices to crash."

Viscount Roster totally felt like Nidhogg the Dragon of Despair was hinting at something. He said a bit helplessly: "Investors are irrational. Actually, I’m still pretty bullish on Dragon Delivery. How about I have people buy some stock to drag the price back up for you?"

"I’m not talking about that. Although our Dragon Delivery crashed a bit, I believe it’ll rise back soon. I’m talking about some other stocks, like that notorious Wool Merchant Guild." 𝗳𝐫𝚎𝗲𝚠𝚎𝗯𝕟𝐨𝘃𝚎𝗹.𝗰𝗼𝗺

Nidhogg the Dragon of Despair shook his head and directly rejected Viscount Roster’s words.

"I really am bullish on Dragon Delivery. Our magic conductor vehicle factory is about to settle in. When this tour ends, we’ll start sales."

"The first ultra-high-speed rail line is also almost complete. Once it’s done, it’ll also provide massive transport capacity."

"With these two products appearing, even if they can’t immediately affect Dragon Delivery’s transport efficiency, there’s no doubt people will believe in that expectation and believe that before long, even Dragon Delivery’s regular package transport speed will improve a lot."

Dragon Delivery’s fastest transport methods all required calling on dragons. The transport costs were just too high—not everyone could afford it. Only some nobles or really urgent situations would use it.

Most cargo still went overland using traditional methods, often taking over a hundred days to arrive.

But with these two vehicles appearing and changing things, probably before long, all cargo transport speed across the entire continent would be compressed to a few dozen days, or even ten-some days, or just a few days.

Just thinking about it, you could imagine how many business opportunities there’d be then.

That was expectations!

With expectations like that, Dragon Delivery’s stock would inevitably rise significantly.

Even Nidhogg the Dragon of Despair quickly understood what Viscount Roster meant.

In fact, Nidhogg the Dragon of Despair even thought of a better delivery route—establishing logistics hubs at key positions across the continent.

Large numbers of dragons stationed at the hubs.

The dragons would handle transferring these packages between hubs.

After reaching each hub, they’d use ultra-high-speed rail or magic conductor vehicles for delivery to smaller geographic units.

Once a mechanism like this was established, cargo flow across the entire continent would change dramatically.

And as the main character, Dragon Delivery...

"Viscount Roster, do you think Dragon Delivery should also follow your example and split its stock? If we split it, what do you think would be the most appropriate price per share?"

Nidhogg the Dragon of Despair thought about it. The biggest problem in this process was actually that if one share was originally close to 30 gold coins, once you split one share into 10 shares, one share would become 3 gold coins.

Although the total gold coins holders had didn’t change because their stock holdings also increased tenfold, a lot of people wouldn’t react in time, causing a series of impacts.

But thinking about it again, this didn’t seem like a problem.

As long as Viscount Roster took the lead, then with the World Economic News Agency running and others fanning the flames, most people would figure it out. A small minority shouldn’t cause any impact.

Nidhogg the Dragon of Despair thought about these things while Viscount Roster also pondered his question.

After quite a while, he finally said: "Actually, whether to split depends on your attitude toward Dragon Delivery stockholders and the composition issue."

"Dragon Delivery’s pricing was pretty high from the start, which led to most people investing in Dragon Delivery being major nobles. They’re not in a hurry for money. They believe in the dragons’ potential. After investing, they rarely sell."

"This naturally led to Dragon Delivery stock having insufficient liquidity. Market demand kept climbing, and prices rose accordingly."

"It’s precisely because of this that Dragon Delivery is the most stable company in the entire stock market."

"But once you split it, large numbers of ordinary small and medium nobles, even citizens and ordinary emerging industrial population, will also start buying in. Short term, this will push Dragon Delivery’s stock price up. But long term, it’ll make Dragon Delivery lose its former stability."

"Of course, this is just my guess."

"You still need to think through the pros and cons yourself, Lord Nidhogg."

After Viscount Roster quickly explained his thoughts, he closed the Magic Net and started researching whether his industries should split next, which ones needed to and which didn’t, and what to do after splitting.