1. When the institution is optimistic about the stock and thinks that the stock has great development potential in the later period, or the institution knows in advance that there will be significant positive news for individual stocks, it is a good thing to buy in advance.
2. If the institutions that buy individual stocks prefer short-term speculation according to their previous operation style, it is a bad thing for the stocks they buy to rise or fall in the short term; If the buying institution is a social security fund, the basic principle of its investment operation is to realize the appreciation of the fund assets on the premise of ensuring the security and liquidity of the fund assets, which will lead to the slow rise of the stocks it buys, which is a good thing.
3. Moreover, when the market is depressed and individual stocks plummet, in order to reduce losses and throw out their chips, institutions will buy some first to attract retail investors in the market to distribute their chips, which is also a bad thing.
: 1. The stock is a part of the ownership of the joint-stock company, and it is also the ownership certificate issued by the joint-stock company. It is a kind of securities issued by a joint-stock company to all shareholders, as a shareholding certificate to obtain dividends and bonuses. Stocks are long-term credit instruments in the capital market and can be transferred and traded. With it, shareholders can share the company's profits, but also bear the risks brought by the company's business mistakes. Each share represents the shareholder's ownership of the basic unit of the enterprise. Every listed company will issue shares.
4. The ownership of the company represented by each share in the same category is equal. The share of ownership of the company owned by each shareholder depends on the proportion of shares held by each shareholder to the total share capital of the company. Stock is an integral part of the capital of a joint-stock company and can be transferred and traded. It is the main long-term credit tool in the capital market, but the company cannot be required to return its capital contribution.
5. Stock has a history of nearly 400 years, which appeared with the emergence of joint-stock companies. With the expansion of business scale and insufficient capital demand, the company needs a way to obtain a large amount of funds. As a result, an enterprise organization appears in the form of a joint-stock company and is jointly operated by shareholders. The change and development of joint-stock companies have produced financing activities in the form of stocks; The development of stock financing has produced the demand for stock trading; The demand for stock trading has promoted the formation and development of the stock market; The development of the stock market finally promoted the perfection and development of stock financing activities and joint-stock companies. Stocks first appeared in capitalist countries.