Private equity by buying stocks_What does it mean to join private equity by buying stocks?

What is private equity by buying stocks? Why would someone do such an operation? Is this operation allowed in the stock market? Many people may not be aware of the benefits it brings to us, so the editor specially brings you a private placement to buy stocks and join. I hope you like it.

Private placement to buy stocks

Stock private placement refers to the sale of stocks to a small number of Accreditedinvestors (usually less than 35). This method can be exempted from registration with the U.S. Securities and Exchange Commission (SEC) Procedure. Investors must sign an investment letter stating that the purpose of purchase is investment and not re-sale.

Stock private placement is also called securities private placement, officially known as private securities investment fund, issued by trust companies and approved by supervisory agencies Declaration, funds are managed by third-party banks, and investment stock market funds with regular performance reports.

If we want to find heavy holdings, we need to know:

1. Select the net profit growth rate A company whose growth rate far exceeds that of its main business. For an enterprise, the main business grows by 25% every year, which is already a good increase. If other businesses can maintain rapid development, it means that the company will develop rapidly in the future.

2. Individual stocks that have begun to reverse performance are also a common method of stock selection. For example, during the melamine incident that year, Yili's profits fell and it was sold sharply, but this was only the bottom area. But it remains to be seen whether this similar dual exchange rate can be restored.

3. It also depends on the price-to-earnings ratio and valuation. Look for companies with lower valuations compared to their peers and similar stocks.

What are the advantages and disadvantages of public offering and private placement in securities issuance?

1. Public offering:

1. Advantages:

(1 ) Public offerings are aimed at public investors and raise a large amount of funds, which is suitable for issuing large amounts of securities and raising large amounts of funds.

(2) The wide range of investors in public offerings can prevent securities from being maliciously hoarded or manipulated by a few people in future development.

(3) Those who issue securities to the public can apply for listing. This issuance method can enhance the liquidity of securities and is conducive to enhancing the social credibility of the issuer.

2. Disadvantages

Registration and approval takes a long time, issuance costs are high, and the issuance process is cumbersome.

2. Private equity:

1. Advantages:

(1) Private equity funds are generally closed-end partnership funds and are not listed on the market. During the closed period of the fund, partner investors cannot withdraw funds at will. The closed period is generally 5 to 10 years, so the operation period is stable and there is no pressure to redeem funds.

(2) Compared with the strict information disclosure requirements of public funds, private equity funds have much lower requirements in this regard. In addition, government supervision is relatively loose, so the investment of private equity funds is more concealed and professional. Skillful, the returns are usually higher.

(3) The success of fund operations is closely related to the self-interests of fund managers. Therefore, fund managers are extremely dedicated and can use their unique and effective operating concepts to attract specific investors. The cooperation between the two parties is based on trust and contract, so moral hazard rarely occurs.

(4) The investment objectives are more targeted, and investment service products can be customized to meet the special investment requirements of customers. For example, Soros' Quantum Fund not only invests in global stock markets, but also invests heavily in foreign exchange, futures, etc., creating very high rates of return.

(5) The organizational structure is simple, the operating mechanism is flexible, and the daily management and investment decision-making freedom is high. Compared with the complex bureaucracy of organizational structures, private equity funds have obvious competitive advantages at critical moments when opportunities are fleeting.

2. Disadvantages:

(1) Non-publicly issued stocks have poor liquidity and cannot be publicly transferred and sold in the market; since funds are raised through non-public means, the entry threshold is high. The target is generally a small number of specific investors. In this way, if investors withdraw their capital or there are other major changes, the risk will be greater.

(2) Also because the target is a small number of investors, information disclosure is relatively loose, and there is a risk of being underpriced and holding shares.

Participating financial stocks

1. Daheng Technology

Minsheng Securities, analyst Li Jing believes that the company has certain capabilities in producing high-pixel cameras. The technological advantages will benefit from the government’s heavy investment in intelligent transportation in the future. Daheng Imaging, a holding subsidiary, is expected to earn a net profit of 40 million yuan this year. The company holds 20% of the shares of Nuoan Equity Fund and has excellent financial management concepts in equity investment, Shanghai, futures and equity participation

2. Jingwei Textile Machinery

Galaxy Securities, the company's Analyst Ma Yong believes that the company's textile machinery business has effectively controlled production costs, the sales of textile machinery products have continued to increase, and the development of energy-saving, environmentally friendly, high-speed and efficient products has enhanced the market competitiveness of the company's products. As corporate financing needs increase, the trust industry develops rapidly. The term of the company's holding subsidiary Rong Trust's products is shorter than the development cycle of real estate projects, which can better control risks in terms of terms; through equity control and financial supervision mechanisms, the trust business can also effectively control risks.

3. Liaoning Chengda

Haitong Securities, analyst Dong Le believes that the company's oil shale project is progressing steadily, the Xinjiang project has obvious cost advantages, and future earnings are more certain. Open pit resources and overall outsourced mining methods significantly reduce mining costs. When the shale oil price is 6,000 yuan/ton, the gross profit margin of the Xinjiang project is approximately 50%. The company holds 25.94% of the shares of GF Securities, with a total share capital of 518 million shares. The latter maintains a leading position in innovative fields such as margin financing and securities lending, direct investment, and asset management, with obvious benefits.

Basic knowledge of stock trading

If novice stock traders want to make money in the stock market, they must continue to practice their ideas and trading sense in the market through their own efforts and learning. Carefully analyze the reasons and reasons for each failure, and at least understand the reasons and reasons for each success. It is recommended to first understand the market and understand the market. You can buy some books to read and apply the knowledge learned in practice.

In addition, you must be familiar with and skillfully use technical analysis indicators; insist on reviewing the market every day, pay attention to national news and external market trends, and operate with reference to the market direction and hot spots; continue to practice to complete yourself A trading system that only recognizes instructions in the market, regardless of winning or losing.

The relationship between the theoretical price of the stock and the market price

The theoretical price of the stock is not equal to the market price of the stock, and there is even a considerable gap between the two. However, the theoretical price of stocks provides an important basis for predicting the trend of stock market price changes, and is also a basic factor in the formation of stock market prices.