Recovery before ex-rights is to keep the current price unchanged, reduce the previous price, and move down the K line before ex-rights, so as to make the graphs match and keep the continuity of stock price trend. To put it simply, the price before ex-rights is converted into the current price, and the current price remains unchanged after reinstatement, and the previous price is reduced.
Formula before reinstatement: price after reinstatement = (price before reinstatement-cash dividend) /( 1+ change ratio of circulating shares)
Post-reinstatement refers to measuring the market cost price of ex-dividend stocks on the K-line chart based on the price before ex-dividend. Simply put, the ex-dividend price is converted into the previous price, and the previous price remains unchanged after the right is restored, and the current price rises. We can see the cumulative increase of the stock since its listing through the reinstatement. If we had bought it at that time, we would have participated in all the distribution and dividends and kept it at the current price.
Formula after reinstatement: price after reinstatement = price before reinstatement ×( 1+ change ratio of circulating shares)+cash dividend The following figure shows the trend of garden biology after reinstatement. On May 3rd, the share price was 100.40 yuan, and on May 4th, the closing price was 102.46 yuan, with an increase of 2.06%.
Fixed-point reinstatement refers to the reinstatement before or after the reinstatement based on the price point of a certain day.
Use without right, before right and after right
If there is no right, the K-line chart can truly reflect the ex-dividend information of the stock price history, but the disadvantage is that there will be a big gap and the moving average system will be disrupted. The pre-reinstatement right is based on the current price, and we can clearly see the cost distribution, such as the relative highest price and lowest price, cost-intensive areas, and whether the current stock price is high or low. If technical analysis is carried out, it is best to use the former right of reply, so that the current price is the latest actual price, and the trend of the K-line moving average is continuous and does not affect the market. After the reinstatement, the price on the first day of listing remains unchanged. According to the price processed by dividend distribution data, the price on the last day will not be displayed as the actual transaction price, but the actual value of the stock and the actual rate of return of shareholders can be seen to increase. If it is a value investment, it is suggested to recover the right after use, so that the calculated rate of return is relatively correct and the query is more intuitive.
To sum up, the former right of reply can realize the continuity of technical indicators, and the latter right of reply can realize the continuity of stock price trend. The loss of right can directly show whether the stock price is filled in or posted after ex-interest. In other words, filling rights mainly refers to a period of time after ex-dividend and ex-dividend. If most people are optimistic about the stock, the market price of the stock is higher than the ex-dividend benchmark price. This market is called Right Charge. Dividend refers to the fact that the market price of the transaction is lower than the ex-dividend benchmark price for a period of time after ex-dividend, that is, the stock price is lower than the closing price on the ex-dividend date. The case of garden biology selected in this paper is produced in the market of filling rights after ex-rights.