Category: Money tips Release Date: 2006-10-10
IPO generally refers to shares of companies to issue shares in the Stock Exchange trading. IPO news, generally prior to listing the ten days, after the media made public. IPO period is different from the stock market price movements tend to produce different effects, investors should be based on the different trends, to properly carry out investment decisions. When the new shares in the stock market booming, listing, often cause stock prices climbing, and promote the general trend for higher prices. Because the general trend was built when the initial public offering, easy to arouse desire to invest shareholders, so that funding for further surrounded by the stock market to stimulate demand for the stock. For example, Japan's Tokyo fashion in 1975 the stock market in the stock market and furious, not only warmly welcomed by the shareholders, but also stock price hit the highest standards, and promote the related apparel company's stock followed the sought-after. Shenzhen City in the first half of 1992, several new issues to market in a bull market one after another, so that stock price index from March 28, 1992 of 113 points, after nearly 50 days continued to rise on the climb to more than 300 points, while the new listing Mimami A shares listed on March 28 by the time of the transaction price of 8 yuan per share, to May 19 rose to close at 23.3 yuan. Therefore, the general trend upward in the stock market investors to IPO, it is desirable to buy shares of the market in due course. On the contrary, if the shares in large losses in the listing of its shares are also showing a further decline trend. In May 1970, Japan, the Long Island public offering at a time when the economic crisis, the stock market crash period. Although at the time of the Long Island, the stock has been the public considered to be one of the best stock, but no one to judge how the Long Island, the stock has the potential growth rate. As a result, so that together in a long decline in stock can not be recovered. Of course, if the tail in the decline period, the purchase of such high growth of new shares, the proceeds will be quite spectacular. As Long Island companies and Japanese companies with operations in the United States has been the most noted investments, a number of savvy foreign investors in the stock market downturn in one group after another to buy Long Island at the time the stock is extremely cheap, making Long Island stock the stock market within a year of recovery, Zhang Sheng 4 times. Shenzhen Baoan stocks lower in 1991, when the stock market listing, share prices have dropped from 5 yuan 3.45 yuan, but the stock market's recovery, the stock price soared, to May 19, 1992, Zhang Sheng Bao stock closing price has been to 31.05 yuan.
In addition, the IPO, investors should closely monitor the newly listed stock price adjustments, and to master the law of their adjustment.
In general, newly listed stocks listed transactions, equity is more dispersed, mostly according to their issue price of U.S. Dollar denominated issuance and distribution. Even the blue-chip stocks, the premium issue price is often lower than market price in order to make a smooth stock company through the issuance of equity to achieve its funding targets. Thus, in the new stock went public, because of its low prices and demand are often large, usually a period of price adjustment. The price adjustment means generally occur following situations:
(1) The price adjustment is conducted once a finish, and then maintained at a reasonable price transactions. Such price adjustment method will be the Department of breath Quotes taken, and to maintain its relative parity with other shares of the relationship, gradually allow the market to accept and identify with.
(2) The price adjustment too far, and then fell back, and then maintained at a reasonable price transactions. Quotes overshoot will do first, and then it fell back down, once down to price match with real, naturally, there will be investors to take over, and then based on the natural supply and demand transactions.
(3) The price adjustment to a reasonable price, the downhill chip down the order, we'll do the second paragraph Quotes adjusted back to the original reasonable price. This adjustment method, there are up and down, can purchase shares in the profits after selling the investor to sign and then enter, resulting in the warm atmosphere of the stock market.
(4) The adjustment of stock prices to a reasonable price first half or 2 / 3 of the price level, the verdict, stop, and then chip finishing, so that new investors or the market big enough to inhale the platform tickets, do Sec Quotes . Such adjustment method may cause a guilty conscience of the investors or shareholders inadequate psychological preparation to reduce profits, but the stock market for the rich practical experience and a veteran of investment profits. Thus, effective access to IPO shares when the law of motion and grasp the price adjustment formula for the success of the stock market investors are indispensable.
