Chapter 7 A place where one thought is heaven and one thought is hell
Soon, a US stock came into Wu Siyuan’s eyes.
【Blue Bird Creature】.
[Bluebird Bio] is a company developing gene therapies to treat serious genetic diseases and cancer. Their mission is to enable patients with potentially fatal diseases and limited treatment options to live full lives.
Currently, they are using three gene therapy technologies, namely gene addition, cell therapy and gene editing, to study cerebral adrenoleukodystrophy, sickle cell disease, transfusion-dependent thalassemia and multiple myeloma.
Their attention and expertise are applied to a range of diseases.
This is a company with a story to tell, or in other words, a company with prospects that can be hyped - for a stock market gambler.
The opening price is $17.85.
In the 2-minute future that Wu Siyuan saw, the U.S. stock called "Bluebird Bio" surged 7.2% within one minute after it opened, reaching a stock price of 19.13 yuan, but then it fell.
It fell directly like a high dive. In half a minute, it went from an increase of 7.2% to a decrease of 10%, which directly triggered the circuit breaker mechanism of the US stock market and temporarily stopped trading.
The United States does not have a price limit, but it has a circuit breaker mechanism.
The circuit breaker mechanism is divided into two types.
One is the market circuit breaker mechanism.
According to the S&P 500 index standard, a market decline refers to the decline of the S&P 500 index point relative to the previous day's closing point during the regular trading period (9:30-16:00 Eastern Time). (Note: If this
If the trading day is half-day trading, the closing time is 13:00)
There are three level market circuit breaker standards.
The primary market circuit breaker refers to the market falling by 7%.
The secondary market circuit breaker refers to the market falling by 13%.
The third-level market circuit breaker refers to the market falling by 20%.
If the primary or secondary market circuit breaker is triggered and the time is:
(1) Between 9:30-15:25 Eastern Time (inclusive), trading of all stocks in the market will be suspended for 15 minutes.
(2) After 15:25 Eastern Time, trading will not be suspended. (Note: If the trading day is half-day trading, the time cut-off point is 12:25)
During any trading period throughout the day, if the third-level market circuit breaker is triggered, the entire market will stop trading until the opening of the next trading day.
The other one is [Bluebird Bio] - individual stock trading suspension mechanism.
a) S&P 500 Index constituent stocks, Russell 1000 Index constituent stocks, and ETP (Exchange Traded Products) stocks in the pilot list, if the stock price rises or falls by 10% in 5 minutes;
b) For other stocks whose stock price is above US$1 (yesterday’s close), if the price rises or falls by 30% in 5 minutes;
c) For other stocks whose stock price is below US$1 (yesterday’s close), if the price rises or falls by 50% in 5 minutes.
The above conditions are sorted according to priority (if a is met, there is no need to care about b, c, etc., and if b is met, there is no need to care about c)
If a stock is triggered to rise or fall, and the time is:
(1) Between 9:45-15:35 (inclusive) Eastern Time, trading of individual stocks will be suspended for 5 minutes.
(2) Trading will not be suspended after 15:35 Eastern Time.
………………………………………………………………………………………………………………………………
…
[Bluebird Bio] In the next two minutes, because the price limit reached 10%, trading was suspended for 5 minutes.
This stock soared by more than 7 points from the opening to plummeting, and even triggered the trading suspension mechanism. In one fell swoop, a lot of funds chasing the rise were trapped in it.
It can be said that [one thought is heaven, one thought is hell]!
This kind of heartbeat gameplay is much more exciting than A-shares. People with poor heart disease may die if they play too hard.
Because the situation after 5 minutes was the future that Wu Siyuan could not see, so after Wu Siyuan withdrew his gaze from the future, without saying a word, he directly placed a buy order of 18 US dollars to enter the market.
U.S. stock trading is somewhat different from A-shares. It is not traded based on 100 shares per lot, but directly based on the number of shares.
In other words, you can buy 100,000 shares, or you can buy one share.
The handling fees they charge are also different. Some charge based on the number of transactions, with each transaction fee ranging from US$14.99 to US$19.99. Others charge based on the number of shares traded, such as IB and Tiger Securities. The trading commission of Tiger Securities is US$0.01.
Points/share, with a minimum of US$2.99/order, which is currently relatively low among U.S. stock brokers.
Because Wu Siyuan has a golden finger that can predict the future, he chooses to charge based on the number of transactions. The brokerage he chose charges US$14.99 per transaction.
In addition, when investing in U.S. stocks, there is another point that needs to be paid attention to, which is the capital gains tax.
Take the handling fee of US$10 per transaction as an example: If you invest US$10,000 to buy a stock and earn US$200 after selling it, the US$10 handling fee for buying and selling the stock is deducted, and then a 25% tax is levied. This is what the United States
Stock handling fees.
If the stock you buy does not make a profit, no tax will be charged, but you must pay a $10 handling fee.
However, in order to encourage foreigners to invest in U.S. stocks, capital gains by foreigners from buying and selling U.S. stocks are tax-free, but dividends given by U.S. companies are subject to a 10% tax deduction.
Then again, the United States is a country with very complicated tax laws, and not all foreigners are exempt from capital gains tax.
The U.S. personal income tax law divides the income of persons who are neither U.S. citizens nor permanent residents of the United States into two categories: income that is effectively connected with a trade or business in the United States; income that is not effectively connected with a trade or business in the United States.
Contact income.
This chapter is not over yet, please click on the next page to continue reading!
For personal income from capital gains or capital gains, U.S. tax law stipulates that if the person stays in the United States for no less than 183 days during the U.S. tax year, income tax will be paid at a flat rate of 30%.
If you stay in the United States for less than 183 days during the U.S. tax year, you do not need to pay income tax on capital gains, unless the individual's capital gains are effectively connected income.
For example: You are a person with Chinese nationality, reside in China, are in the United States for less than 183 days during the tax year in the United States, and your only U.S.-related activities are trading Google stocks and gold futures through a broker.
, then your trading profits do not need to pay tax to the United States. This is a situation.
Or, you are a person of Chinese nationality, residing in China, present in the United States for 183 days or more during the tax year in the United States, and your only U.S.-related activity is trading Google stocks and gold futures through a broker
, then your trading profits need to pay tax to the United States according to the provisions of the tax treaty between the United States and China, which is another situation.
Or, if you are a person with Chinese nationality, studying in the United States or working in an American company but have not yet obtained a U.S. green card, and you trade Google stocks and gold futures through a broker, then your transaction will be profitable.
It is another situation to pay tax to the United States in accordance with the standards of a U.S. citizen or permanent resident after a certain tax reduction, or to pay tax to the United States in accordance with the provisions of the tax agreement between the United States and China.
It’s not just tax laws. In fact, many laws in the United States are very complicated. Not to mention foreigners, even locals may not be able to understand them clearly. This is why the American lawyer industry is very prosperous.
Of course, Wu Siyuan lives in his own country and will not go to the United States for the time being. It is even less likely that his company will be open until now, so he is exempt from paying capital gains tax.