The primary market, also known as the Issuance Market, refers to the company selling newly issued stocks to investors directly or through intermediaries. The so-called newly issued shares include the initial issue and the reissue. The former is the original shares that the company sells to investors for the first time, and the latter is the process of adding new shares on the basis of the original shares.
The operation of the primary market
(1) Consultation and management
1. Choice of issuance methods: The methods of stock issuance can generally be divided into Public Placement and Private Placement.
2. Select the investment bank as the underwriter.
3. Prepare the prospectus.
4. Issue pricing.
(II) Subscription and sale
There are usually the following specific ways: 1. Underwriting 2. Consignment 3. Secondary Market for underwriting
stocks
The secondary market, also known as the trading market, is a place for investors to buy and sell issued stocks. This market creates liquidity for stocks, that is, it can be quickly sold in exchange for present value.
the secondary market can usually be divided into organized stock exchanges and over-the-counter markets, but there are also The Third Market and The Fourth Market with mixed characteristics.
the third market refers to the market formed when the stocks originally listed on the stock exchange are moved to be traded over the counter. In other words, the third market trading refers to the stocks both listed on the stock exchange and traded on the over-the-counter market, which is different from the general meaning of over-the-counter trading.
the fourth market
the fourth market refers to the securities transactions directly conducted by large institutions (and wealthy individuals) using electronic communication networks (ECNS) to bypass the usual brokers. How to classify stocks?
A shares, B shares and H shares are classified by English letters. A shares are denominated in RMB, which are issued by China citizens and listed in China; B shares are denominated in US dollars and Hong Kong dollars, issued to overseas investors, but listed in China; H shares are the shares of domestic enterprises issued and listed in Hong Kong in Hong Kong dollars. In addition, the stocks listed by China enterprises in the United States, Singapore and Japan are called N shares, S shares and T shares respectively. Due to the different pricing and issuing targets of A shares, B shares and H shares. In addition, it is worth mentioning that the B shares listed in Shanghai Stock Exchange are denominated in US dollars, while those listed in Shenzhen Stock Exchange are denominated in Hong Kong dollars, so the share prices of the two cities are quite different. If the US dollars and Hong Kong dollars are converted into RMB, we will know that the share prices of the two places are basically the same. It is not standardized to classify stocks by letters. According to the requirements of China Securities Regulatory Commission, stock abbreviations must be unified and standardized. It is believed that with the further development of China's stock market, the titles of A shares, B shares and H shares will become history.
There are so-called "red chips" and "blue chips" in the Hong Kong stock market. Red chips refer to the shares issued by companies whose largest controlling interest directly or indirectly belongs to the relevant departments or enterprises in mainland China and listed on the Hong Kong Stock Exchange. Chinese-funded enterprises listed in Hong Kong. People describe China as a red China, and her national flag is a five-star red flag, so the stocks issued by listed companies associated with China are called red chips; Americans bet on cards, with blue chips as the highest, red chips as the medium and white chips as the lowest. Later, people called the most powerful and active stocks in the stock market blue chips. Blue chip stocks have almost become synonymous with blue chip stocks. With the mainland listing in Hong Kong one after another, some people have made a more rigorous definition of red chips, that is, Chinese-funded enterprises that are bound by the laws of Hong Kong must have their parent companies registered in Hong Kong, while companies registered in the Mainland are only enterprises that borrow funds from the Hong Kong capital market, also known as "H shares". However, red chips are still widely used as the names of Chinese-funded enterprises listed in Hong Kong.
the so-called growth shares refer to the shares of companies that are not large in scale when issuing shares, but the company's business is booming, well managed, profitable and competitive in the market.
The so-called hot stocks refer to stocks with large trading volume, high trading turnover rate and large price fluctuation. The formation of hot stocks often has its specific economic, political and social reasons.
The so-called blue-chip stocks refer to the stocks of companies with good performance but slow growth. This kind of company has the strength to resist the economic recession, but it can't bring you exciting profits.
the so-called cyclical stocks refer to the stocks of companies whose operating performance changes with the ups and downs of the economic cycle. Aviation industry, automobile industry, steel and chemical industry all belong to this category.
The so-called regenerated stocks refer to the stocks of enterprises that have encountered difficulties or even went bankrupt, and have been recognized by investors again after rectification.
the so-called defensive stocks. These common stocks are just the opposite of stock price revolving stocks. In the face of uncertainty and business recession, their returns and dividends are higher than the social average and they are relatively stable.
the so-called performance stocks (also known as concept stocks). Refers to the stock that can cater to the trend of a certain era but may not be able to adapt to the trend of another era, and the stock price shows great ups and downs.
so-called speculative stocks. Refers to those common stocks whose prices are very unstable or whose company's prospects are very uncertain. This is mainly the shares of ambitious, developmental or adventurous companies, popular new shares and ordinary shares issued by some oil and mining companies with lower par value.