1. Definition of overweighting: overweighting: a jargon in the securities industry. As the name suggests, it means increasing holdings, which can also be called adding positions. Whether it is stocks, futures, funds, other securities, commodities, etc. that can be traded on the market, additional purchases on the original basis can be called increasing holdings. That is to say, if you already have a certain position, adding more purchases is to increase your holdings - increase your position.
2. Impact of increase in shareholding:
(1) Shareholder increase in shareholding: Shareholder increase in shareholding is a substantial benefit to the company's stock and will generally drive up the stock price. The reasons are: 1. Those who are most familiar with the company's situation should be the company's major shareholders. If shareholders increase their holdings of the company's shares, it means they are optimistic about the company's future development. Once the company has development prospects, it will fundamentally ensure that the company's stock price rises. 2. From the perspective of market supply and demand, shareholders' increase in the company's stock holdings has expanded the demand for the stock. Demand exceeds supply, which will drive up the stock price at the market level.
(2) Institutional increase in holdings: Institutions continue to increase their holdings through the secondary market, which shows that they are optimistic about the listed companies behind the stocks, which is a good thing. Under the new normal of China's economy, institutional holdings are considered an important driving force for the bull market.
It is best for investors to have some preliminary understanding of the stock market before entering the stock market. In the early stage, you can use the Geniugubao mobile phone market software to check it out. There are some basic stock knowledge materials worth learning. You can also use the relevant knowledge to build your own set of mature stock trading knowledge and experience.
Happy investing!