Category: Money tips Release Date: 2006-03-09
1. Now the new company, usually out most of the company shares traded. Been approved by the SFC before listing, listing price, according to their own company's net asset value, compared to other similar companies with the industry, the stock market price, set an offering price. And then proceed to purchase new shares, ordinary investors can participate in subscription of new shares. As more people purchase, so have to draw lots, successful people, they buy shares at an offering price.
Therefore, the company's purchase end of the process to determine the stock to be issued on the shareholders who have already been sold out. (As listed securities companies underwriting the event did not end the subscription, which is responsible for buying the remaining shares) at this time, listed on the stock transferred to the hands of the investors signed. In other words, the company's majority stake, has become of these shareholders had. These investors become shareholders of the company. The purchase of local shares, called the primary market.
2. In this process, the company traded to the secondary market. Listed on the first day, the company's stock price by the market to decide freely, many investors it can also be freely traded shares, in the Let's countries, the majority of the stock market price will be higher than the first day of issue price, so the majority of subscription to the shareholders on the first day of throw. From this day, these shares in the hands of re-sold for resale to investors. Therefore, if you buy stocks, that is, someone to sell. So, you bought the stock was not bought from the securities companies, but from the other shareholders bought there. Securities companies just to help you complete the sale, it's just a trading place, which they are not traders.
3. Stock up, because more people buy, we pushed the stock higher. If you buy a stock not insisted, then it is up, you will have to delegate a higher price to buy it, thus lifting the stock price, and they are very rare. As long as you bid high enough, someone would sell it to you. Similarly, if you bid low enough, someone would buy the stock in your hands.
4. However, due to Change China's stock market to stop the restrictions no matter how high you bid, and must not be higher than the yesterday's closing price of 110%, because of restrictions on your offer, it is possible that you have made that the price can not be bought because it is possible no one willing to sell. Therefore, in limit-case, you might not buy the same token, the lower limit case, you may not sell.
5. As the stock is listed, the total number of shares is unchanged, so there would be no dilution of the situation. The total number of shares is also likely to increase, which was the company's shareholders decided to issue additional shares, but it has to go through the Commission's approval. In addition, you can also Major Holders, for example, to send five shares for every 10 shares, such shares will be diluted, the dilution of all shareholders to hold a unit together, so it will not damage your interests. But the diluted share price would naturally be "down" was in fact carrying a general re-holding.
