Stocks are share certificates issued by a joint stock company to investors when raising capital. Stocks represent the ownership rights of their holders (i.e. shareholders) in a joint stock company. This kind of ownership is a comprehensive right, such as attending shareholder meetings, voting, and participating in major company decisions. Collect dividends or share dividends, etc. Each share of the same class represents equal ownership in the company. The size of each shareholder's share of the company's ownership depends on the number of shares he or she holds relative to the company's total equity. Stocks can generally be transferred for a fee through buying and selling. Shareholders can recover their investment through stock transfer, but they cannot require the company to return their capital contribution. The relationship between shareholders and the company is not a creditor-debt relationship. Shareholders are the owners of the company. They have limited responsibilities to the company, bear risks, and share profits to the extent of their capital contribution.
Stocks are a product of socialized mass production and have a history of nearly 400 years. As the achievements of human civilization, joint-stock systems and stocks are also applicable to our country's socialist market economy. Enterprises can raise funds for production and operations by issuing shares to the public. The state can control more resources with the same capital by controlling a majority shareholding. Currently in Shanghai. Most of the companies listed on the Shenzhen Stock Exchange are state-controlled companies.
Stocks have the following basic characteristics:
(l) Irrepayability. Stocks are securities with no repayment period. After investors subscribe for stocks, they can no longer request to withdraw their shares and can only sell them to a third party in the secondary market. The transfer of shares only means a change in the company's shareholders and does not reduce the company's capital. From a term perspective, as long as the company exists, the stocks it issues will exist, and the term of the stock is equal to the term of the company's existence.
(2) Participation. Shareholders have the right to attend shareholders' meetings, elect the company's board of directors, and participate in major company decisions. The investment will and economic benefits enjoyed by stock holders are usually realized through the exercise of shareholder participation rights.
The right of shareholders to participate in company decision-making depends on the number of shares they hold. In practice, as long as the number of shares held by shareholders reaches the actual majority required to influence the decision-making results, Be able to control the company's decision-making.
(3) Profitability. Shareholders have the right to receive dividends or dividends from the company and obtain investment income based on the stocks they hold. The size of dividends or dividends mainly depends on the company's profit level and the company's profit distribution policy.
The profitability of stocks is also reflected in the fact that stock investors can obtain price difference income or achieve asset value preservation and appreciation. By buying stocks at low prices and selling them at high prices, investors can earn profits from the spread. Take U.S. Coca-Cola Company stock as an example. If you had invested $1,000 in the company's stock at the end of 1983, you would have sold it at the market price of $11,554 in July 1994, earning more than 10 times the profit. During inflation, stock prices will rise as the replacement price of the company's original assets rises, thereby avoiding asset depreciation. Stocks are often viewed as a preferred investment during periods of high inflation.
(4) Circulation. The liquidity of a stock refers to the tradability of the stock among different investors. Liquidity is typically measured by the number of shares available for trading, the trading volume of a stock, and the sensitivity of the stock price to trading volume. The more tradable shares, the greater the trading volume, and the less sensitive the price is to trading volume (the price will not change with the trading volume), the better the stock's liquidity will be, and vice versa. The circulation of stocks allows investors to sell the stocks they hold in the market and obtain cash. Through the circulation of stocks and changes in stock prices, we can see people's judgments about the development prospects and profit potential of related industries and listed companies.
Industries and companies that attract a large number of investors in the circulation market and whose stock prices continue to rise can continue to absorb a large amount of capital into production and operation activities through the issuance of additional stocks, thereby optimizing resource allocation.
(5) Price volatility and risk. As a trading object in the trading market, stocks, like commodities, have their own market conditions and market prices. Since stock prices are affected by various factors such as company operating conditions, supply and demand, bank interest rates, public psychology, etc., their fluctuations are highly uncertain. It is this uncertainty that has the potential to cause stock investors to suffer losses. The greater the uncertainty of price fluctuations, the greater the investment risk. Therefore, stocks are a high-risk financial product. For example, International Business Machines Corporation (IBM), which dominates the world's computer industry, had a price per share as high as US$170 when its performance was extraordinary. However, when its position was challenged and it made operational mistakes and incurred losses, the stock price fell to US$170. $40. If the stock is purchased at a high price at the wrong time, serious losses can result.
Funds can be divided into broad and narrow senses. In a broad sense, funds are a collective term for institutional investors, including trust investment funds, unit trust funds, provident funds, insurance funds, retirement funds, and various foundations. fund. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income-generating functions and value-added potential. From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses.
Funds are formed because investors from governments and public institutions do not require return on investment or recovery of investment, but require the funds to be used for specified purposes in accordance with legal provisions or the investor's wishes.
The funds we are talking about now usually refer to securities investment funds.
Securities investment funds are an indirect form of securities investment. Fund management companies pool investors' funds through the issuance of fund units, which are custodian by the fund custodian (i.e. a qualified bank). The fund manager manages and uses the funds to invest in stocks, bonds and other financial instruments, and then assumes the responsibility Investment risks and profit sharing. Securities investment funds can be divided into different types according to different standards:
According to whether fund units can be added or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not listed for trading, and are generally purchased and redeemed through banks, and the fund size is not fixed; closed-end funds have a fixed duration, during which the fund size is fixed, and are generally listed and traded on securities exchanges, and investors buy and sell funds through the secondary market. unit.
·According to different organizational forms, they can be divided into corporate funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; it is established by a fund manager, a fund custodian and an investor through a fund contract, which is usually called a contract fund. At present, my country's securities investment funds are all contract funds.
·Based on the differences in investment risks and returns, funds can be divided into growth, income and balanced funds.
·According to different investment objects, they can be divided into stock funds, bond funds, money market funds, futures funds, etc.
·According to different investment objects, securities investment funds can be divided into: stock funds, bond funds, money market funds, hybrid funds, etc. If more than 60% of the fund assets are invested in stocks, it is a stock fund; if more than 80% of the fund assets are invested in bonds, it is a bond fund; if it invests only in money market instruments, it is a money market fund; if it invests in stocks, bonds and currencies If the fund is a market instrument and the ratio of stock investment to bond investment does not comply with the regulations on bond and stock funds, it is a mixed fund. From an investment risk perspective, several funds bring different risks to investors. Among them, stock funds have the highest risk, money market funds have the least risk, and bond funds have an intermediate risk. Investment funds of the same type will have different risks due to different investment styles and strategies. For example, stock funds can be divided into: balanced, stable, index, growth, and growth based on risk levels. Of course, the greater the risk, the higher the return; the lower the risk, the lower the return.
Introduction to open-end fund trading:
◆Preparation process
Before investors purchase funds, they need to carefully read the prospectus, fund contract and account opening procedures of the relevant fund. , trading rules and other documents. Each fund sales outlet should have the above documents for investors to consult at any time.
Individual investors need to bring their agent bank debit card and valid identity document (ID card, military ID card or armed police card), while institutional investors need to bring their business license, organization code certificate or original registration certificate , as well as copies of the above documents with official seals, power of attorney, ID card and copy of the person in charge.
Bring the prepared information with you and fill in the fund business application form at the bank's counter branch. After completing the filling, you will receive a business receipt. Individual investors will also need to receive a fund trading card, which can be used two days after the day of handling the fund business. Go to the counter to get the business confirmation. After receiving the business confirmation, the unit or individual can engage in the purchase and redemption of funds.
◆How to purchase
After completing preparations for opening an account, citizens can choose their own time to purchase funds. Individual investors can bring the debit card and fund transaction card of the agent bank and fill out the fund transaction application form at the counter of the agency outlet (institutional investors must stamp the reserved seal), which must be submitted before 15:00 on the day of purchase. The application will be accepted at the counter and a fund business receipt will be issued. Two days after handling fund business, investors can go to the counter to print the business confirmation letter.
◆How to Redeem
When investors intend to redeem their funds, they can bring the debit card and fund trading card of the account opening bank, also before 3 p.m. Fill out and submit the transaction application form, and after it is accepted at the counter, investors can inquire after 5 days and the redemption funds will be credited to their account.
◆How to withdraw
If trading investors need to withdraw the transaction, they can bring their fund trading card and bank debit card and fill in the transaction at the counter before 15:00 on the day of the transaction. Application form, indicating the withdrawal of the transaction. If it is after 15:00, some banks can make reservations for transactions based on the quoted price of the day and conduct transactions on the next working day.
At present, almost all banks and fund management companies support trading funds on the Internet.
Recently, I have seen that many netizens often ask what funds are about, as if funds are a very complicated and difficult thing to understand, and they also say that they cannot understand the fund knowledge articles recommended to read.
Therefore, I often think about how to let these friends understand what a fund is in the shortest possible time and show them these funds that are not mysterious. So I came up with the idea to try to explain what a fund is in as simple a language as possible. I hope that these funds It helps for friends to learn about the fund as soon as possible.
Suppose you have a sum of money that you want to invest in bonds, stocks, and other securities to increase value, but you have neither energy nor professional knowledge, and the money is not much, so you want to partner with 10 other people. To invest, hire an investment expert (theoretically someone higher than me), and use the combined assets to increase investment value. But here, if more than 10 investors negotiate with investment experts at any time, the matter will not be chaotic, so we recommend one of the most knowledgeable investors to take the lead in handling this matter. Regularly give him a commission based on a certain percentage from the assets jointly invested by everyone, and he will pay the masters' labor fees on their behalf. Of course, he himself takes the lead in organizing large and small things, including running errands from house to house, and always reminds the masters about the risks. Point, regularly announce investment profits and losses to everyone, etc. Don't work in vain, the money in the commission also includes his labor fees. These things are called partnership investments.
Amplifying this partnership investment model 100 times or 1,000 times is a fund.
If this kind of private partnership investment activity establishes a complete contract between investors, it is a private equity fund (it has not yet been recognized by the relevant laws and regulations of the national financial industry in our country).
If this kind of partnership investment activity is approved by the national securities industry management department (China Securities Regulatory Commission), the lead operator of this activity is allowed to raise funds from the public to attract investors to join the partnership, this will It is the issuance of public funds, which are now common funds.
What is the role of a fund management company? The fund management company is the lead operator of this kind of partnership investment, but it is a legal person and its qualifications must be approved by the China Securities Regulatory Commission. The fund company, like other fund investors, is also one of the partner investors. On the other hand, because it takes the lead in the operation, it must withdraw labor fees (called fund management fees) at a certain proportion from the assets jointly contributed by everyone every year to hire on behalf of the investors. The investment experts (i.e., fund managers) who are responsible for trading on behalf of the managers, as well as those who help the experts collect information and conduct research, regularly announce the assets and income of the fund. Of course, these activities of fund companies are approved by the China Securities Regulatory Commission.
In order to ensure the safety of the assets jointly produced by everyone and prevent them from being misappropriated secretly by the fund company, the lead operator, the China Securities Regulatory Commission stipulates that the assets of the fund cannot be placed in the hands of the fund company. The fund company and fund manager only Don't touch money during trading operations. For bookkeeping and money management, you need to find someone who is good at it and has high credibility. This role is of course no other than a bank. So these investments (that is, fund assets) are placed in the bank, and a special account is established, which is accounted for by the bank, which is called fund custody. Of course, the bank's service fees (called fund custody fees) must also be paid annually in proportion to the assets of the partnership. Therefore, relatively speaking, fund assets only have the risk of losses due to poor operations by those experts, and there is basically no risk of being stolen. From a legal perspective, even if the fund management company goes bankrupt or even the custodian bank has an accident, the people collecting debts from them have no right to touch the assets of our fund accounts, so the safety of fund assets is very guaranteed.
If this kind of public fund is established after raising investors within a specified period of time (the state stipulates that it must reach at least 1,000 investors and a scale of 200 million yuan before it can be established), it will stop attracting other investors. investors, and agreed that no one can withdraw their capital midway, but by a certain year and month from now on, we will all break up and share the burden. If you want to cash out in the middle, you can only find someone else to sell it. This is a closed-end fund.
If this kind of public fund still welcomes other investors to invest in it at any time after its establishment, and also allows everyone to withdraw part or all of their own funds and deserved income at any time, this is an open-end fund. fund.
Whether it is a closed-end fund or an open-end fund, in order to facilitate everyone's buying and selling, we can find a place like an exchange (securities market) to list the fund, and trade it freely among investors at market prices, that is Listed funds.
Now let’s read the concept of funds below, so that we won’t be too confused.
Securities investment funds are a collective investment and financial management method that invests in securities with maximum benefits and maximum risks. That is, by issuing fund units, investors’ funds are pooled and managed by the fund custodian. Custodian (usually a reputable bank), the fund manager (i.e. fund management company) manages and uses the funds to engage in investment in financial instruments such as stocks and bonds. Fund investors enjoy the returns from securities investments and also bear the risks arising from investment losses. Funds in our country are currently contractual funds, which are a form of trust investment.
Characteristics of securities investment funds:
1. Expert financial management is an important feature of fund investment. The investment experts equipped by fund management companies generally have profound theoretical foundations in investment analysis and rich practical experience. They use scientific methods to study financial products such as stocks and bonds, combine investments, and avoid risks. Accordingly, every year the fund management company will withdraw management fees from the fund assets to pay for the company's operating costs. On the other hand, the fund custodian will also draw custody fees from the fund assets.
In addition, open-end fund holders need to pay directly subscription fees, redemption fees and conversion fees. Holders of listed closed-end funds and listed open-end funds pay transaction commissions when they buy or sell units.
2. Portfolio investment to spread risks. By pooling the funds of many small and medium-sized investors, securities investment funds have formed strong capabilities and can invest in many types of stocks at the same time, thus diversifying the risks of concentrated investment in individual stocks.
3. Convenient investment and strong liquidity. The starting point requirements for the minimum investment amount of securities investment funds are generally low, which can meet the needs of small investors for securities investment. Investors can decide the amount of investment in the fund based on their own financial resources. Most securities investment funds have strong liquidity, making it very convenient for investors to recover their investments. Our country also provides a tax-free policy for people’s fund investment income.
At the same time, some issues related to securities funds will be explained below.
What are the fund subscription fees and subscription fees?
It is the fee you have to pay when you invest in a business, because it costs a lot of money for a fund company to publicize its activities to attract investors. Naturally, these expenses cannot be paid by the other party alone. In addition, by increasing your cost of joining the business, Reduce your desire to leave soon after joining.
What is the fund’s redemption fee?
You have to pay fees when you withdraw your investment and income, for reasons similar to the above. Another thing is that when someone withdraws their capital, the fund may have to sell some bonds and stocks in order to return cash to you. This is an action that is detrimental to the fund's assets and has a negative impact on the interests of other partners who do not withdraw their capital, so Let you keep some money as compensation.
What is a fund’s switching fee?
The same fund company operates multiple funds. If you hold one of the funds and want to exchange it for another fund operated by the fund company with the same amount of assets, you should pay the fund company The reason for the conversion fee is the same as the above two items. It is mainly to increase your cost of change and not to make you change frequently.
What is fund trading commission?
It is the labor fee collected from you by the business department of the securities company that provides you with trading services when the listed funds are transferred on the exchange market.
Why are there so many types of securities investment funds?
This is because different funds have different main investment directions and investment objects.
Stock funds are funds in which most of the funds are invested in the stock market;
Bond funds are funds in which most of the funds are invested in the bond market;
Bond funds are funds in which most of the funds are invested in the bond market;
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Hybrid funds are funds that invest part of the funds in stocks and the other part in bonds according to the situation (of course, this investment ratio can be changed and adjusted), and can even be partially invested according to prior regulations. In other varieties;
A money market fund is a fund in which all assets are invested only in various short-term securities (low risk but low return) in the money market.
The order of investment risks of these funds from high to low is roughly stock funds, hybrid funds, bond funds, and money market funds.
Since the risks are different, investors should choose a fund with a suitable risk level to invest in based on their own risk tolerance. They can also invest in low-risk funds, medium-risk funds and high-risk funds. Part of the way to diversify risks and balance the level of returns is called an investment portfolio.
What “growth”, “value”, “industry”, “blue chip”, “small cap”, “cycle”, “consumer goods”, etc. are used in the names of different funds? , is to mark its main investment strategy style on the name so that investors can understand it at a glance. Of course, it does not rule out that some funds are just looking for a good name to make it easy for the China Securities Regulatory Commission to approve their establishment.
The above is mainly about securities investment funds. There are also real estate funds that specialize in investing in real estate, futures and options funds that specialize in futures options, gold funds that specialize in investing in the gold market, and industrial funds that specialize in investing in industry. These funds do not have many investment opportunities for those of us who are new to fund investment. Let’s first get through the most common securities funds above.
Stocks are share certificates issued by a joint stock company to investors when raising capital. Stocks represent the ownership rights of their holders (i.e. shareholders) in a joint stock company. This kind of ownership is a comprehensive right, such as attending shareholder meetings, voting, and participating in major company decisions. Collect dividends or share dividends, etc. Each share of the same class represents equal ownership in the company. The size of each shareholder's share of the company's ownership depends on the number of shares he or she holds relative to the company's total equity. Stocks can generally be transferred for a fee through buying and selling. Shareholders can recover their investment through stock transfer, but they cannot require the company to return their capital contribution. The relationship between shareholders and the company is not a creditor-debt relationship. Shareholders are the owners of the company and have limited liability to the company to the extent of their capital contribution, bear risks and share profits.
Stocks are a product of socialized mass production and have a history of nearly 400 years. As the achievements of human civilization, joint-stock systems and stocks are also applicable to our country's socialist market economy. Enterprises can raise funds for production and operations by issuing shares to the public.
The state can control more resources with the same capital by controlling a majority shareholding. Currently in Shanghai. Most of the companies listed on the Shenzhen Stock Exchange are state-controlled companies.
Stocks have the following basic characteristics:
(l) Irrepayability. Stocks are securities with no repayment period. After investors subscribe for stocks, they can no longer request to withdraw their shares and can only sell them to a third party in the secondary market. The transfer of shares only means a change in the company's shareholders and does not reduce the company's capital. From a term perspective, as long as the company exists, the stocks it issues will exist, and the term of the stock is equal to the term of the company's existence.
(2) Participation. Shareholders have the right to attend shareholders' meetings, elect the company's board of directors, and participate in major company decisions. The investment will and economic benefits enjoyed by stock holders are usually realized through the exercise of shareholder participation rights.
The right of shareholders to participate in company decision-making depends on the number of shares they hold. In practice, as long as the number of shares held by shareholders reaches the actual majority required to influence the decision-making results, Be able to control the company's decision-making.
(3) Profitability. Shareholders have the right to receive dividends or dividends from the company and obtain investment income based on the stocks they hold. The size of dividends or dividends mainly depends on the company's profit level and the company's profit distribution policy.
The profitability of stocks is also reflected in the fact that stock investors can obtain price difference income or achieve asset value preservation and appreciation. By buying stocks at low prices and selling them at high prices, investors can earn profits from the spread. Take U.S. Coca-Cola Company stock as an example. If you had invested $1,000 in the company's stock at the end of 1983, you would have sold it at the market price of $11,554 in July 1994, earning more than 10 times the profit. During inflation, stock prices will rise as the replacement price of the company's original assets rises, thereby avoiding asset depreciation. Stocks are often viewed as a preferred investment during periods of high inflation.
(4) Circulation. The liquidity of a stock refers to the tradability of the stock among different investors. Liquidity is typically measured by the number of shares available for trading, the trading volume of a stock, and the sensitivity of the stock price to trading volume. The more tradable shares, the greater the trading volume, and the less sensitive the price is to trading volume (the price will not change with the trading volume), the better the stock's liquidity will be, and vice versa. The circulation of stocks allows investors to sell the stocks they hold in the market and obtain cash. Through the circulation of stocks and changes in stock prices, we can see people's judgments about the development prospects and profit potential of related industries and listed companies.
Industries and companies that attract a large number of investors in the circulation market and whose stock prices continue to rise can continue to absorb a large amount of capital into production and operation activities through the issuance of additional stocks, thereby optimizing resource allocation.
(5) Price volatility and risk. As a trading object in the trading market, stocks, like commodities, have their own market conditions and market prices. Since stock prices are affected by various factors such as company operating conditions, supply and demand, bank interest rates, public psychology, etc., their fluctuations are highly uncertain. It is this uncertainty that has the potential to cause stock investors to suffer losses. The greater the uncertainty of price fluctuations, the greater the investment risk. Therefore, stocks are a high-risk financial product. For example, International Business Machines Corporation (IBM), which dominates the world's computer industry, had a price per share as high as US$170 when its performance was extraordinary. However, when its position was challenged and it made operational mistakes and incurred losses, the stock price fell to US$170. $40. If you buy the stock at a high price at an untimely time, it will lead to serious losses
Basic noun concepts of stocks
Comparison:
It is a measure of a certain period of time An indicator of the relative strength of bids and offers. Its calculation formula is commission ratio = (commissioned number of buying lots - commissioned selling lots)/commissioned number of buying lots + commissioned selling lots × 100%. The value range of "commissioned ratio" is from -100% to +100%. If "commissioned ratio" is positive, it means that the buying order on the market is stronger, and the larger the value, the stronger the buying order. On the contrary, if "commissioned ratio" is positive, the buying order is stronger. If it is a negative value, it means that the market is weak.
The difference:
The sum of the current buying volume minus the sum of the selling volume reflects the positive balance between the buyers and sellers. The number indicates stronger buyers, and the negative number indicates heavier selling pressure.
Volume ratio:
It is an indicator of relative trading volume, which is the average trading volume per minute after the market opens. The ratio to the average trading volume per minute in the past 5 trading days is: volume ratio = total current transactions/(average trading volume per minute in the past 5 days × cumulative opening time of the day (minutes))
< p> When the equivalence ratio is greater than 1, it means that the average trading volume per minute of the day is greater than the average value of the past 5 days, and trading is more popular than in the past 5 days; and when the equivalence ratio is less than 1, it means that the current trading volume is not as good as the past 5 days. Average level.Opening price:
Refers to the price of the first transaction of the stock after the market opens. If there is no transaction price within 30 minutes after the market opens, it will be the price of the previous day. The closing price is used as the opening price.
The closing price:
Refers to the price of the last stock traded every day, which is the closing price:
Refers to the highest price among the prices traded on that day.
Sometimes the highest price is only one price, and sometimes there is more than one price.
Lowest price:
Refers to the lowest price among the prices traded on that day. Sometimes the lowest price is only one price, and sometimes there is more than one price.
Ordinary shares:
Ordinary shares refer to shares that enjoy ordinary rights in the company's operation and management, profit and property distribution, representing the satisfaction of all debt repayment requirements and the income of preferred shareholders. It is the right to claim corporate profits and residual property after claiming rights and claims. It forms the basis of the company's capital, is a basic form of stock, and is also the largest and most important stock. The stocks currently traded on the Shanghai and Shenzhen stock exchanges are all ordinary shares. Common stock holders have the following basic rights in proportion to the shares they hold:
(1) The right to participate in company decision-making. Ordinary shareholders have the right to participate in the general meeting of shareholders and have the right to propose, vote and elect, and can also entrust others to exercise their shareholder rights on their behalf.
(2) Profit distribution rights. Common stockholders are entitled to receive dividends from the company's profits. Dividends on common stocks are not fixed and are determined by the company's profitability and its distribution policy. Ordinary shareholders must be entitled to dividend distribution rights only after preferred shareholders receive fixed dividends.
(3) Preferential stock options. If the company needs to expand and issue additional common shares, existing common shareholders have the right to preemptively purchase a certain number of newly issued shares at a specific price lower than the market price in proportion to their shareholdings, thereby maintaining their original ownership of the company. There is proportion.
(4) Residual asset distribution rights. When a company goes bankrupt or is liquidated, if the company's assets remain after repaying its debts, the remainder will be distributed to preferred stockholders first and then to common stockholders.
Preferred shares:
Is relative to common shares. Mainly refers to the priority over ordinary shares in terms of rights to profit dividends and residual property distribution.
Preferred stocks have two rights:
a. When the company distributes profits, shareholders who own preferred stocks are distributed first than shareholders who hold ordinary stocks, and they enjoy a fixed amount. The dividends, that is, the dividend rate of preferred stocks are fixed, but the dividends of ordinary stocks are not fixed. They depend on the company's profitability. More profits will be divided, more profits will be divided, less profits will be divided, no profits will be divided, no upper limit, no lower limit.
b. When the company is dissolved and the remaining property is distributed, preferred shares are distributed before common shares.
The price limit system originated from the early foreign securities markets. It is a kind of securities market that appropriately limits the rise and fall of the price of each security on the day in order to prevent the sudden rise and fall of transaction prices and suppress excessive speculation. The trading system stipulates that the maximum fluctuation range of the trading price in a trading day is a few percent above or below the closing price of the previous trading day, and trading will be stopped after it exceeds.
The current price limit system of my country's securities market was promulgated on December 13, 1996 and implemented on December 26, 1996. It aims to protect the interests of investors, maintain market stability, and further promote the market's stability. Standardization. The system stipulates that, except for the first day of listing, the trading price of stocks (including A and B shares) and fund securities in one trading day shall not increase or decrease by more than 10% relative to the closing price of the previous trading day, exceeding the price limit. The delegation is invalid.
The main difference between my country's price limit system and foreign systems is that after the stock price reaches the price limit, trading is not completely stopped. Trading at or within the price limit can still continue until the market closes that day. .