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Start from scratch (6)
After entering the 20th century, the partners of this family business, under the leadership of Henry Goldman, focused more on maintaining growth and promoting expansion. 1906, Goldman Sachs seized a business opportunity, and three small and medium-sized cigar manufacturers merged to form United Cigarette (later renamed General Cigarette). Goldman Sachs had commercial promissory notes with several companies before the merger. Jake Wertheim, CEO of the new company, and Henry Goldman are good friends, and both of them can't wait to do business. But at that time, to enter the open securities market, whether bonds or stocks, it was necessary to evaluate according to the balance sheet and total fixed assets of financing enterprises-this was the main reason why railway enterprises became important customers of finance companies. In order to expand the living space, United cigars need long-term capital injection. Its financial characteristics are like ordinary "business" or trading companies-it has good profits, but it is difficult to provide objective proof of assets. After discussing with the six shareholders of United Cigar, Henry Goldman once again demonstrated his outstanding innovation ability in the financial field: he put forward a brand-new concept, that is, business-oriented companies, such as wholesalers and retailers-as long as they can use the merged assets as collateral as in the ordinary financing process. ...