Category: Money tips Release Date: 2006-07-15
Wholeheartedly Editor:
Recently, I have always received a company phone to persuade the South, "Bio-technology Co., Ltd. in Xi'an," to be listed in the U.S., so we buy the original shares. The other said the company is only 3 yuan at current prices more than doubled and so on will certainly be after the listing. I do not understand very well on the stock, heard someone else say initial offerings and more prudent to buy, even if not listed can also enjoy the annual dividend. Let the people little money, are most afraid fooled, please Zhijiao matter whether the spectrum if they can purchase to go through what procedures?
Hengshui Li Li
Li Li reader:
Hello! Recently, with the pace of expansion of the stock market to re-start initial offerings of the profits once coveted by investors, a semi-hot markets have begun to improve, there are many investors asking the same question with you. At this point, as one to remind you to treat the primary share offering must remain cautious and calm.
In the securities market, the distribution market is a market, circulation market is the secondary market, a market is semi-involved in the issue and circulation of intermediate links. Yan Song legal experts believe that a market is chaotic and a half have been breeding a lot of problems and hidden dangers, not suitable for small and medium investors place. Because a semi-market non-standard disclosure of information asymmetry, market fraud and illegal acts in the prevalence of problems after the difficult to legal protection. Medium and small investors not to be all I could see and hear of some small benefit of the temptation, resulting in their losses to lodge complaints, with no recourse, but will not be able to NASDAQ-listed fooled by propaganda. In fact, many companies claim to enter the overseas markets, the entry is not the Nasdaq, but a Nasdaq Stock Market place outside the OTC OTC Jibei called the "Pink Sheets" market , similar to China's three board market. Even more problematic is that, in accordance with the United States and overseas stock market listing and trading rules, issued by companies registered in mainland China stocks listed on overseas stock markets can not be with the transaction. But can be listed and traded must be registered in the overseas, it is actually purchased by investors, initial offerings and ultimately could not listed on the Nasdaq, their behavior is tantamount to fraud.
Faulty underground trading, the biggest risks is not a legitimate market place, equity ownership is unknown, opaque disclosure of information asymmetry, the transfer procedures are not standardized, the interests of investors can not be guaranteed. Underground stock, in addition to fraud, investors, there are also intermediary institutions and non-listed shares of the company's actual control of people together, publication of false information to mislead investors, engaged in insider trading, manipulation of stock prices, for example, a semi-market investors get the proof of ownership is a wide variety of. In addition to payments and whether the rights recognized, on behalf of shareholders, follow-up assignment, transfer and other issues on many occasions, the most worrying is that these shares do not have time to handle the business sector shareholders register the change. According to the State Council's "Illegal Financial Institutions and Illegal Financial Business Activities ban approach" the provisions of Article XVIII, "for engaging in illegal financial business activities are the loss borne by the participants themselves." Therefore, participating in a semi-stock market investment and underground transactions the rights of persons protected by law is difficult. Invalid agreements and transactions can only be the largest restitution, refund, but if the business failures, empty, no money was also when the time of a semi-market investors, money failed to be implemented.
Objective existence in a semi-market, investors, businesses and equity investments and the flow of the market have a great desire to circumstances, the establishment of the shares throughout the care center can actually play a board and three boards off outside the market place effect. As a counter market, it can regulate a large number of Limited distribution, trading, supervision and information disclosure functions, the only way to meet the market and social needs in order to safeguard the interests of investors, but also to crack down on stock transactions from the front to combat illegal financing and illegal and other illegal violations.
On a semi-market, the two most important problem is that non-listed public company shares issued and outstanding issues. As the old "Securities Act" has the Securities and Exchange must be carried out in the provisions of the Securities and Exchange places, while the old "Company Law" stipulates that, at least three years, the company founder shares may be transferred, but in fact at least three years, shares of the company founder has no suitable place, therefore, the two clashed in the law. This is, in the new "Securities Law" and the new "Company Law" has been resolved, therefore, only the regulatory authorities to effectively monitor the OTC into the scope of a legitimate market place, a unified offer, hiding in a semi-market, fraudsters will be no living space, while the real one and a half market investors can also invest in the safety of the state tax revenue can increase, which is the market expected the parties to co-win-win results.
