What is Gross Sales Margin?
Gross sales margin is gross profit as a percentage of sales revenue, where gross profit is the difference between sales revenue and cost of goods sold
What is net asset value per share?
The net worth of a company represents the property owned by the company itself and the shareholders' interest in the company. Therefore, it is also called shareholders' equity. In accounting calculations, it corresponds to the balance of total assets minus all liabilities in the balance sheet. The net worth of the company is divided by the total number of shares issued to get the net worth per share.
What is the growth rate of main business income?
The growth rate of main business income is the ratio of the difference between the main business income of the current period and the main business income of the previous period to the main business income of the previous period. Expressed in the formula: the growth rate of main business income = (the current period of main business income - the previous period of main business income) /
What is the gearing ratio?
Gearing ratio, is the ratio of total liabilities to total assets. This indicator shows how much of a company's assets are debt, and can also be used to check whether a company's financial situation is stable. It is also used to check the stability of a company's financial position. This indicator is understood differently from different perspectives.
Gearing ratio = Total liabilities ÷ Total assets × 100%
What is return on equity?
Back on Equity, also known as Return on Shareholders' Equity, is the percentage of net income to average shareholders' equity. This indicator reflects the level of return on shareholders' equity. The higher the value of the indicator, the higher the return on investment.
What is the price-to-earnings ratio?
The price-earnings ratio is an important indicator of the return and risk of a stock, also known as the price-to-earnings ratio. It is the current market price per share divided by the company's profit per share after tax, which is calculated as follows: P/E ratio = market price per share of the stock / profit per share after tax
What is capital gains?
Capital gain or loss is the income earned by an investor who trades stocks in the securities market through the difference between the stock's bid price and the ask price, also known as capital gain or loss. When the selling price is greater than the buying price it is a capital gain, i.e., a positive capital gain, and when the selling price is less than the buying price it is a capital loss, i.e., a negative capital gain.
What is holding period yield?
What is the P/E pricing method?
The method of determining the issue price of a stock through the price-earnings ratio is known as P/E ratio, which should firstly calculate the issuer's earnings per share based on the profit forecast reviewed by a certified public accountant, and then the issue price-earnings ratio can be formulated based on the average price-earnings ratio of the secondary market, the industry status of the issuer, the issuer's operation status and its growth, etc., and finally, the issue price can be determined based on the product of the issue price-earnings ratio and the earnings per share.
What is the Net Asset Multiplier Method?
The net asset multiple method, also known as the net asset value method, refers to the net asset value per share of the issuer's assets to be raised through asset valuation and related accounting methods to determine the net asset value per share, and then multiply the net asset value per share by a certain multiplier according to the securities market conditions, in order to determine the issuance price of the stock method. The formula is: issue price = net asset value per share × premium multiplier.
What is the bidding method?
The bidding method refers to the investors in the designated time through the trading network of the securities trading venues, at a price not lower than the issue of the reserve price and according to the limit of the proportion or number of subscription commission. After the expiration of the subscription period, the trading system of the trading venue will be all valid subscriptions in accordance with the price priority, the same price declaration time priority principle, the investors' subscription mandate from the high price to the low price queue, and from the high price to the low price of the cumulative number of valid subscriptions, when the cumulative number of the number of the issue happens to reach or exceed the price of the number of the issue that is the price of the issue.
Terms of Indexes
Shanghai Stock Exchange Fund Indexes
1. The name of the index is "SSE FUND INDEX".
2. The base day is the trading day before the official release, and the index is 1000 points on the base day.
3. The scope of the sample is all securities investment funds listed on the exchange.
4. External release: the fund index is released in real time through the market database, and the index code is 000011.
5. Calculation method: the formula of the Paixu index is used to calculate the index, and the total shares of the issued fund units are used as the weights.
That is:
Reporting period index = (total market capitalization of the fund in the reporting period/base period) x base day index
Wherein, total market capitalization of the fund = ∑ (market capitalization of the fund x total shares of the fund units).
6. Correction method: When the list of sample funds changes or the total market capitalization of sample funds changes due to non-trading factors, the original divisor is corrected using the "divisor correction method" to ensure the continuity of the index calculation.
The correction formula is as follows:
New divisor=(total market value of the fund after correction/total market value of the fund before correction)×original divisor
Wherein, total market value after correction=total market value before correction+new (minus) market value;
(1) Listing of New Funds: Whenever there is a new securities investment fund listed on the stock market, the new fund will be counted into the index on the second day of listing.
(2) Distribution of cash proceeds: Where there is a distribution of cash proceeds by a sample fund, the index is corrected before the ex-dividend date.
(3) Suspension: When a sample fund is suddenly suspended during trading hours, the last traded price of the sample fund is taken to calculate the instant index until the market closes.
(4) Suspension of Trading: When trading of a sample fund is suspended, the closing price of the day before the suspension is taken to calculate the index. If trading is suspended for more than two days or more, the index will be withdrawn from the third consecutive day of suspension, and will be reauthorized after its resumption of trading.
(5) Delisting: Where a sample fund is no longer listed for trading due to liquidation or other reasons, the index will be revised before the delisting date.
7, the relationship with the stock index: the existing SSE Composite Index, SSE 30 Index and other 9 indexes are stock indexes, SSE Fund Index is a fund price index, not a stock index, not included in the compilation of any of the stock index.
What is the SOE index?
Also known as the H-share index, the full name is Hang Seng China Enterprises Index. It is a weighted average stock price index calculated using all the stocks of Chinese H-share companies listed on the Stock Exchange as constituents. The purpose of the Hang Seng China Enterprises Index is to provide investors with an indicator of the share price performance of Chinese H-share companies listed in Hong Kong. The index is calculated using the same formula as the Hang Seng Index.
The SOE index was first announced on Aug. 8, 1994, with July 8, 1994, the date the number of listed H-share companies reached 10, as the base date? The closing index on that day was set at 1,000 points. The index is calculated retrospectively to July 6, 1993, the date when the first Chinese company was listed on the Stock Exchange.
The all-time low for the SOE index was 993.92 points in August 1998, and the all-time high was 7,742.8 points in August 1997
The number of constituents of Hong Kong's Chinese Enterprises Index (CEEI) is reviewed semiannually, and the number of constituents is not fixed.
The sample of the Hang Seng Red Chip Constituent Index was adjusted to 47 stocks on June 1, 2001, the highest level in history, and then to 27 stocks on Oct. 3, 2001, which are mainly composed of red chips with large market capitalization, active trading, and industry representativeness. The distribution of industries mainly includes petrochemicals, real estate, port transportation, automobiles, technology and general. The base period has been changed to October 3, 2000 accordingly, and the base index is 2000.
The historical low of the Red Chip Index was 1187.54 points in August 1998, and the historical high was 6466.48 points in August 1997.
What is the Consumer Price Index
Consumer Price Index: The Consumer Price Index is an index that reflects the trend and magnitude of change in the price level of goods and services purchased and used for consumption by residents.
This index survey is divided into eight categories: food, tobacco, alcohol and supplies, clothing, household equipment and services, health care and personal goods, transportation and communications, entertainment, education and cultural goods and services, and housing.
What is the CSI 300 Index?
In order to reflect the general picture of stock price movements and operating conditions in China's stock market, and to be able to serve as an evaluation standard for investment performance, and to provide the basic conditions for indexed investment and index derivative product innovation, the Shanghai and Shenzhen Stock Exchanges have compiled and released the CSI 300 Unified Index.
Shanghai and Shenzhen 300 index is referred to as "Shanghai and Shenzhen 300", the Shanghai market using the code 00300, Shenzhen market using the code 399300, the base date of the index is December 31, 2004, the base point of 1000 points.
The constituents of the index are: listed and traded for more than a quarter; non-ST, ☆ ST stocks, non-suspended stocks; the company's operating conditions, the last year without major violations of the law, no major problems with the financial report; stock prices are not obvious abnormal fluctuations or market manipulation; eliminating the other alarming expert committee that can not be entered into the index of the stock. The selection criterion is to choose stocks with large size and good liquidity as sample stocks. The selection method is to first calculate the sample space stocks in the last 1 year of the average daily total market value, average daily market value in circulation, average daily number of shares in circulation, average daily turnover and average daily number of shares traded 5 indicators, and then the weight of the above indicators by 2: 2: 2: 1: 1 weighted average, and then sort the results of the calculation from high to low, selecting the stocks ranked in the top 300.
The index is calculated by using the formula of the Paixa-weighted composite price index, which is weighted by adjusted equity.
Shanghai and Shenzhen 300 indices are subject to regular adjustments. In principle, the index constituents are adjusted once every six months, usually in early January and early July to implement the adjustment. The percentage of each adjustment is set at no more than 10%.
Terms for Securities Issuance
What is underwriting?
When an issuer raises funds through the securities market, it hires a securities broker to help it sell its securities. The process of selling the securities within the stipulated period of validity of the issue is called underwriting, which is based on the reputation and business network of the securities management organization in the securities market.
What is underwriting?
It means that the issuer of securities entrusts the securities business organization (also known as the underwriting organization or underwriter), which undertakes the underwriting business, to sell the securities to the investors on behalf of the issuer. The underwriters try their best to sell the securities within the agreed period of time according to the stipulated terms of the offering, and if the securities are not sold in full by the sales deadline, the unsold portion is refunded to the issuer, and the underwriters do not bear any risks of the offering.
What is underwriting?
It is a contract between the issuer and the underwriter whereby the underwriter buys all or sells the remaining portion of the securities and assumes the entire risk of sale. For the issuer, the underwriting does not have to bear the risk of not selling the securities, and can quickly raise funds, and thus is suitable for those companies with large capital needs, low social awareness and lack of experience in securities issuance.
What is an underwriting syndicate?
For a particularly large stock issue, an underwriting agency is often unwilling to bear the risks of the issue alone, then an underwriting group will be organized by a number of institutions **** with the same as the underwriters, so that the risk borne by each underwriting agency alone is reduced. The structure of the underwriting group depends on the size of the issue, the issuance area and the choice of listing area. When the issue size is small, and only issued in one country, listed, then only choose the country of some underwriters to form the underwriting group is enough. When the issue is large and is to be issued and listed in several countries at the same time, it may be necessary to form multiple underwriting syndicates depending on the circumstances. The sponsor of the underwriting group is the main underwriter of the securities underwriting, usually by a large and powerful securities business organizations.
What is a public offering?
It refers to the public offering of securities by the issuer to the public through intermediaries. In the case of a public offering, all legitimate social investors can participate in the subscription, including individual investors, legal entities, securities investment funds and so on. In order to protect the interests of the majority of investors, countries have strict requirements for public offerings, such as the issuer should have high credit and meet the conditions of issuance stipulated by the securities authorities, and can only be issued after approval. China's corporate issuance is subject to the relevant conditions of the Securities Law and the Company Law.
What is a private placement offering?
Private placement, also known as private offering or internal offering, is a way of issuing securities to a few specific investors. There are two types of private placement, one is individual investors, such as the company's old shareholders or the issuer's own employees (commonly known as "internal employee shares"); the other is an institutional investor, such as large financial institutions or the issuer has a close relationship with the enterprise, and so on. Private placement has a certain investor, the issuance procedures are simple, can save the issuance time and cost. The shortcomings of private placement issuance are limited number of investors, poor liquidity, and it is also not conducive to improving the social credibility of the issuer. At present, the issuance of listed foreign shares (B shares) in China is almost entirely carried out by private placement.
What is a parity issue?
Flat-rate issuance, also known as equal-rate or par-rate issuance, means that the issuer takes the par value as the issue price. For example, if a company's stock has a par value of $1, and if it is issued at par, then the company's selling price at the time of issuance is also $1. Since the stock usually trades at a higher price than its face value, most investors are willing to subscribe. The main drawback of the par issue is that the issuer raises a small amount of capital. More in the securities market is not developed countries and regions used. China's initial issuance of shares, has been used, such as the 1987 Shenzhen Development Bank issued shares, the par value of each share of 20 yuan, the issue price of 20 yuan per share, that is, for the parity issue.
What is the premium rate?
Premium rate: The premium rate is the percentage by which the price of the underlying stock needs to change before the warrant expires in order for warrant investors to realize a call on the expiration date. The premium is one of the measurements of the riskiness of a warrant, the higher the premium, the less likely it is to be called.
Call warrant premium = [ ( exercise price - call warrant price / exercise ratio ) / underlying security price - 1 ] × 100% Put warrant premium = [ 1 - ( exercise price - put warrant price / exercise ratio ) / underlying security price ] × 100%
What is a discount issue?
Discounted issue refers to the sale of new shares at a price lower than the par value, that is, the issue of shares at a discount to the par value, the size of the discount depends mainly on the performance of the issuing company and the ability of the underwriters. Such as the nominal value of a certain stock for 1 yuan, if the issuing company and the underwriters reached an agreement between the discount rate of 5%, then the issue price of the stock for 0.95 yuan per share, at present, very few joint-stock companies in the western countries at a discount to the issue of shares.
What is secondary sales?
This refers to the re-sale of large blocks of stock after the primary sale by the issuing company. Such sales are often conducted by one or more securities firms, the stock offer price is usually fixed and referenced to the market price, and the securities sold may be listed or unlisted. A secondary sale sometimes refers to a lump sum of real estate.
What is an over-allotment option?
It is an option granted by the issuer to the lead underwriter, whereby the lead underwriter so authorized is over-allocated by up to 15% of the underwritten amount at the same issue price, i.e., the lead underwriter offers shares to investors at up to 115% of the underwritten amount. Within 30 days from the date of listing of the additional shares of the underwritten portion, the lead underwriter has the right to choose to purchase the issuer's shares from the centralized bidding market or to request the issuer to issue additional shares to be distributed to the investors who have applied for subscription of this oversubscribed portion in accordance with the market conditions
What is the corporate placement method of issuance?
It refers to the issuer's public offering of new shares, allowing a portion of the new shares to be allocated to legal persons. According to the "Guidelines on Issuance Method of Corporate Placement" issued by the China Securities Regulatory Commission (CSRC), the issuer and the main underwriter determine the issuance volume and the issue price in advance, and then determine the final issue price by requesting quotations from the corporate investors and according to the reservation of the corporate investors' subscription, and then place the shares at the same price to the corporate investors and issue them on the Internet to the general investors. The legal person includes both strategic investors and general legal persons. According to the regulations, the issue price shall be generated by the inquiry; the issuance of more than 80 million shares, in principle, the proportion of the legal person shall not exceed 50% of the issuance; the issuance of more than 200 million shares, according to the market situation, can be appropriately increased to the proportion of the legal person; the issuer to select strategic investors, the main underwriter is responsible for determining the general legal person
What is the directional offering?
Targeted fundraising is a way of issuing stocks, that is to say, it refers to the issuance of stocks directly to a few specific investors without public sale. We are now talking about the targeted collection of companies in China's shareholding system at the beginning of the pilot, the emergence of a number of not to the public offering of shares to the community, but only to the legal person and the company's internal staff of the company's shares of the joint-stock limited company. 1993 State Council issued an official document clearly stipulates that stop the approval and issuance of shares of the internal staff of the approval and issuance of shares, June 19, 1994, the National Commission for Reform and Reform of the National Commission on the immediate cessation of approval of the directed collection On June 19, 1994, the NISRC issued another circular on the immediate suspension of the approval of directed offerings and reiterated the suspension of the approval and issuance of internal employee shares. Since then, there has been no more directed solicitation of companies, the company issued shares need to be issued by the state issued quotas and public offering to the public.
What is the par value of a stock?
The par value is the amount printed on the face of the stock, indicating the amount of capital represented by each unit of stock, generally with a par value of RMB 1.00 per share; the issue price is the price charged to the investor when the company issues the stock. The issue price and the face value of a share can be equal, but they usually are not.
What are A shares?
The official name of A-share is RMB common stock.
What are B shares?
The official name of B-share is RMB special stock. It is a stock with par value in RMB, subscribed and traded in foreign currencies, and listed and traded on domestic (Shanghai and Shenzhen) stock exchanges
What are H-shares?
H-shares, i.e., foreign shares registered in the mainland and listed in Hong Kong
What are N-shares?
That is, the place of incorporation in the mainland, listed in New York, the first letter of the alphabet is N
What is the S shares? Singapore's first letter of the alphabet is S, Singapore-listed shares S shares.
What are F shares?
F-shares are ordinary shares issued by our joint stock companies for overseas listing and circulation
What are "penny stocks"?
Recently, China's online stock prices have been falling continuously, and some newspapers, media and websites have published articles talking about "junk stocks".
For example, an article in the People's Daily Overseas Edition of July 31, 2000, entitled "Sohu and NetEase Approaching Junk Stocks," said: "Since July 17, the 'China Concept Stocks' listed on the Nasdaq have been going down in the midst of the stock market's plunge. The situation all the way down, Sohu and NetEase is in the fall below the issue price, fell to 5 U.S. dollars in the Nasdaq's 'junk stock' boundary. ...."
The Beijing Youth Daily (07/30/2000) article, "Who's Paying for China's Internet Feast," said, "..... Now the news from the Nasdaq is that several "Chinese concept stocks" are generally down, two of them almost fell below the 5 dollar mark, almost becoming the 'garbage stocks' in the stock market. The meaning of "trash" is to be discarded, and once discarded, it's much harder to get back in the game. ....."
For example, the Life Times article "Who Will Be the First Internet 'Junk Stock'" from July 27, 2000 says: "..... According to the 'rules of the game' on Wall Street, a publicly traded company whose stock falls below five dollars becomes a 'junk stock' and will be classified by Nasdaq's venture capital fund as a 'speculative and dangerous stock ' and thus no longer make any investment in it. Thus Sohu and NetEase are already on the verge of danger, who will be the first Chinese Internet concept stock to be listed as a 'junk stock'? The Internet companies listed abroad first will have a big responsibility. If they perform well, Chinese Internet companies will be favored by investors as a whole, and if they are all wiped out, investors will lose confidence in China's Internet concept stocks, and the chances of the second echelon of Internet companies going public will be gone."
These statements completely misunderstand what junk stocks really are. On Wall Street, junk stocks are judged by their credit ratings, which have nothing to do with stock prices. The commonly used definition of a junk stock is (see Appendix A for the original English text): a high-risk, high-yield security rated BBB or lower by Standard & Poor's. Junk stocks are mostly issued by companies that are unknown, financially weak or lack repayment power.
The Nasdaq definition of junk stocks (see Appendix B for the original English text) is: high-risk securities issued by companies with weak fiscal and financial strength, high interest rates and a high percentage of defaults (failures to honor debts). "Junk stock" is a colloquial term for speculative, high-risk, high-interest companies and their stocks, which have a much higher default rate than high-quality stocks and are mostly issued by financially weak companies.
Nasdaq in the U.S. National Business Conduct Board testimony testimony on junk stocks is described as (see Appendix C for the original English text): by the securities rating agency Moody's rated Baa level or lower, S& P rated BBB level or lower, or is not yet rated, the market price volatility is greater than the risk of principal and income, Stocks with lower ratings are high-income ratio securities. In particular, stocks rated BBB or lower by S&P or Baa or lower by Moody's (compared to unrated stocks) are highly speculative and are called "junk stocks".
It's clear that Nasdaq doesn't use stock prices as a yardstick for judging junk stocks. The above mentioned Standard & Poor's, is a famous American old financial investment services company, the company established the S&P index and stock ratings are very important investment reference. S&P rated BBB or lower level stocks, is a junk stock. S&P rating is based on: (a) the company's profit and profit ratio, usually do the most recent three consecutive years of analysis; (b) the company's credit level, usually for the most recent five consecutive years of financial analysis. Companies that are not well known, financially weak or lack repayment power mostly do not have high profitability ratios and creditworthiness, and thus their stocks have more chances of being rated as junk stocks. Newly listed companies do not have a long history and thus, S&P does not take any rating for their stocks lightly.
Junk stocks, which are characterized by high risk and high yield, became popular in the 1980s, and the typical junk stocks are those of gold and diamond mining companies. Such companies, if no mine of mining value is found, then the company is likely to go bankrupt, hence high risk; if a mine of mining value is found, then hundreds or thousands of times the profit will be made at once, hence high return. In view of the high-risk and high-yield features, do junk stock investment generally need two basic conditions: (a) there are enough or even strong capital savings, in other words, is able to lose money: if the investment object of bankruptcy, the stock into the waste paper, the investor can bear the consequences of the loss of blood money. (ii) as an individual investor to be young, in other words, is able to lose time, this investment fails, there will be enough time to make money later to recoup losses. Without these relevant conditions, it is best not to do junk stock investment; if there are conditions, then, junk stock investment is a growth investment (Growth), can be completely as a portfolio structure (Portfolio) of a part of the waste is not no one wants.
In the U.S. stock market, there is also a stock called "Penny Stock", called "penny stock". As the name suggests, the price of this kind of stock is very low, usually below one dollar per share. Although the price of such stocks is very low, they are not necessarily junk stocks. There are many companies in the United States that have grown from "penny stocks," and MCI, a major player in the network communications industry, is one of them.
China's network of companies listed on the time is still very short, S& P and so on have not rated their stocks, therefore, no matter what the price of their stocks, can not say is not a garbage stock. The current press media popularized the so-called "a listed company's stock if it falls below five dollars, will become a garbage stock. ...... will be classified as a 'speculative and dangerous stock' by Nasdaq's venture capital funds, and thus no longer have any investment in it", "Junk stock ...... Once abandoned, it is much more difficult to get again", and so on, are some hype and cloudy statements, not only does not accord with the basic concept of junk stocks, but also does not accord with the actual operation of the U.S. stock market. Some time ago, some people see the "virtual technology", looking at the text business, thinking that the real and the reality of the antonym, so that many newspapers and media across the country to blackmail. Now, see the "garbage stocks", is also looking at the business, see the word "garbage" two words, thought to think that no one wants the waste, but also make the country many newspapers and media to blackmail. People and blackmail will cause a large number of people say the same thing, but more mouth does not necessarily equal to say the right thing. I hope that the press and media can publish things in a scientific and factual way. （
What are PT shares?
"PT" stands for Particular Transfer in English. It is a "special transfer service" designed to provide liquidity for suspended stocks. The Shanghai and Shenzhen Stock Exchanges (SSE) prefix "PT" to the abbreviation of the stocks undergoing such "special transfer" and refer to them as "PT Shares".
According to the Company Law and the Securities Law, a listed company's stock will be suspended if it suffers losses for three consecutive years. The Shanghai and Shenzhen stock exchanges started from July 9, 1999 to implement "special transfer service" for such suspended stocks. The first batch of such stocks were "PT Shuanglu", "PT Nongshangsha", "PT Suansanshan" and "PT Yu Taibai". ".
There are four main differences between special transfers and normal stock trading: (1) Trading hours are different. Special transfers are limited to the opening hours of every Friday, instead of continuous day-by-day trading. (2) different limitations on upward and downward movement. The declared price of the special transfer stock may not exceed 5% above or below the price of the last transfer, which is the same as the daily range of ST stock. (3) Summary of the different ways, special transfer is the exchange in the market after the close of the day a one-time on the stock of all valid declarations in accordance with the collection of bidding for the aggregation, resulting in a unique transaction price, all eligible for the transaction of the entrusted plate will be traded according to this price. (4) The nature of the transaction is different. Special transfer stocks are not listed for trading, therefore, these stocks are not counted in the index calculation, the number of transactions are not counted in the market statistics, and its transfer information is not displayed in the exchange market, only by the designated newspaper set up a column in the next day's announcement.
What is stock placement?
Share allotment is an act by which a listed company issues new shares to its original shareholders to raise funds according to the needs of the company's development, in accordance with the relevant regulations and corresponding procedures. As a rule, the subscription rights of new shares are distributed among the original shareholders according to the proportion of their original shares, i.e., the original shareholders have preferential subscription rights.
What is the share registration date?
The shares of a listed company circulate in the trading market every day, and when a listed company gives away shares, pays out dividends or makes a share allotment, it needs to set a certain day to define which shareholders can participate in the dividend or share allotment, and this day is the share registration day. In other words, investors who still hold or buy the company's shares on the share registration date are entitled to participate in the dividend or share allotment. This part of the register of shareholders by the securities registration company in the statistics, then will be due to send the bonus shares, cash dividends or allotment of shares to the accounts of these shareholders.
What is the ex-dividend date?
The first day after the share registration date is the ex-rights or ex-dividend day, this day or after the purchase of the company's shares, the shareholders are no longer entitled to the company's dividends and share allotments.
What is a stock fund?
Stock fund is an investment fund that invests in stocks, which is the main type of investment fund. The main function of a stock fund is to concentrate the small investments of mass investors into large sums of money. It invests in different portfolios of stocks and is the main institutional investor in the stock market.
What is a hedge fund?
Hedge funds are known as Hedge Funds, which means "risk-hedged funds". It originated in the United States in the early 1950s. The purpose of its operation lies in the use of futures, options and other financial derivatives, as well as the associated different stocks to buy and sell, the risk of hedging the operation of the skills, to a certain extent, can be avoided and dissolve the securities investment risk.
What is an Equalization Fund?
The Equalization Fund is a fund established by the government through specific institutions (the Securities and Exchange Commission, the Ministry of Finance, the Exchange, etc.) in a statutory manner, through the reverse operation of the securities market, ironing out the irrational sharp fluctuations in securities to achieve the purpose of stabilizing the securities market fund. Generally, the source of the leveling fund has a statutory channel or its basic composition is mandatory, such as the state financial allocations, levies on the relevant units involved in the securities market, etc., and does not rule out the allocation of investors who voluntarily buy
Holding period rate of return refers to the investor's income during the period of holding the stock with the difference between the purchase and sale price of the stock as a percentage of the stock's purchase price