Chapter 7 A Place Where One Thought Is Heaven and One Thought Is Hell (Please Subscribe and Recommend)

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, for a stock market gambler, prospects to hype.

The opening price was $17.85.

In the 2-minute future that Wu Siyuan saw, the U.S. stock called [Bluebird Bio] surged 7.2% in 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 does have a circuit breaker mechanism.

There are two types of fusing mechanisms.

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 relative to the previous day's closing point during regular trading hours (9:30-16:00 ET). (Note: If the trading day is a half-day trading, the closing time is 13:00)

There are three levels of 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 in all stocks in the market will be suspended for 15 minutes.

(2) Trading will not be suspended after 15:25 Eastern Time. (Note: If the trading day is a 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] - a trading suspension mechanism for individual stocks.

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) Other stocks with a share price above US$1 (yesterday’s close), if the price rise or fall reaches 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 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 to be [one thought of heaven, one thought of hell]!

This kind of heartbeat game 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 one hundred thousand shares or one share.

The handling fees they charge are also different. Some charge based on the number of transactions, with each transaction fee ranging from 14.99 to 19.99 US dollars. Others charge based on the number of shares traded, such as IB and Tiger Securities. The trading commission of Tiger Securities is 0.01 US dollars. 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 is 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 the conduct of a trade or business in the United States; income that is not effectively connected with the conduct of a trade or business within the United States. Contact income.

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 the individual is present in the United States for less than 183 days during the U.S. tax year, no income tax is payable on capital gains unless the individual's capital gains are effectively connected income.

For example: You are a person with Chinese nationality who resides in China, you 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 have 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, and your only U.S.-related activity is trading Google stock 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 Chinese national who is studying in the United States or working in an American company but has 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 treaty 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 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 not be open until now, so he is exempt from paying capital gains tax.