How are private equity stocks generally traded? Do you know how many price terms we will encounter when trading in the stock market? Here's how to trade private equity stocks brought by Bian Xiao. I hope you like them.
How to trade private equity?
Buying and selling stocks by private equity funds usually involves the following aspects of transactions and prices:
Conclude trading contracts: Private equity funds will conclude trading contracts with stock exchanges, brokers or other counterparties, and stipulate the specific trading conditions for buying and selling stocks. The transaction contract includes the quantity, price and delivery time of the transaction.
Transaction execution price: when private equity funds buy and sell stocks, they will execute the price according to the agreement in the transaction contract. The execution price is usually determined according to the market price of the stock, which can be in the form of real-time market price, pending order price limit, etc.
Handling fee: the handling fee that private equity funds may need to pay to brokers or other trading service agencies when trading stocks. The handling fee can be calculated according to a fixed amount or a certain proportion of the transaction amount, and the specific rate can be stipulated by the exchange or brokerage firm.
Cash substitution transaction: In some cases, private equity funds may not directly buy and sell physical stocks, but use financial derivatives related to stock prices, such as stock index futures or options. This trading method is called cash substitution trading, and its price and trading rules are different from those of physical stock trading.
It should be noted that the specific details and requirements of private equity fund trading stocks may be different due to the regulations of countries, regions and exchanges, as well as the differences in private equity fund contracts and investment strategies. Investors should carefully read the relevant contract documents before conducting private equity fund transactions to understand the specific trading methods, pricing rules and fees. In addition, investors are advised to consult professional institutions or independent financial advisers to obtain appropriate investment advice before stock trading.
Classification of stock private equity funds
1, stock long fund
Stock long funds are fund products distributed in the stock market without hedging or short positions. Different from stock funds in Public Offering of Fund, stock long-term funds can be located in the stock market, and they can also choose short positions or buy money funds and bonds for timing when the market is not good.
According to different investment ideas and decision-making methods, stock long-term funds can be divided into subjective long-term funds and quantitative long-term funds. According to whether the index is used as the benchmark and tracking error, stock long-term funds are divided into index-enhanced funds and stock-picking funds. At present, most of the index enhancement funds in the market are quantitative funds, and the benchmark indexes are CSI 500, CSI 1000 and CSI 300.
2. Neutral funds in the stock market
The neutral fund in the stock market is the stock hedge fund, which uses hedging means to hedge the stock bulls held by the fund and obtain the alpha without exposing the beta. Generally, domestic hedging methods include stock index futures, securities lending, OTC/OTC derivatives and so on.
Neutral funds in the stock market often take quantification as their investment concept and decision-making means. According to the application of strategy, it can be further subdivided into transactional type, traditional multi-factor type, machine learning type, T+0 type and compound type.
Purchase steps of stock private placement
The steps of buying stock-based private equity funds mainly include: first, investors need to prepare personal data and investment funds; The second step, investors need to determine the fund to invest in; The third step, investors need to carry out real-name authentication; The fourth step, investors need to choose private equity institutions to invest.
What are the common stock types?
First, according to the rights of shareholders.
According to the rights of shareholders, stocks can be divided into common stocks and preferred stocks. Common stock is the most common stock in a joint stock limited company. Shareholders who own common shares have the right to participate in the operation of joint-stock companies and can vote in company elections.
Secondly, ordinary shareholders also have the right to distribute the expected income, that is, the joint-stock company decides to pay dividends after making money, and ordinary shareholders have the right to participate in dividends. Finally, common shareholders have the preemptive right. Where a joint-stock company issues additional ordinary shares, the original ordinary shareholders can subscribe for the newly issued shares first, and ensure that the shareholding ratio of their shares remains unchanged.
Preferred stock refers to the stock that a joint stock limited company gives investors certain preferential conditions when raising funds. For example, the dividend of preferred shareholders is prior to that of ordinary shareholders, and the dividend is fixed, and its expected income has nothing to do with the company's operating conditions.
Preferred stock cannot be listed and traded, and its liquidity is limited. In addition, preferred shares have no right to participate in the operation and voting of the company. However, when a joint-stock company goes bankrupt and liquidates, the distribution of preferred shareholders precedes that of ordinary shareholders.
Second, according to the nature of investors.
According to the nature of investors, stocks can be divided into state shares, legal person shares and social public shares. State-owned shares refer to the shares formed by the departments that have the right to invest on behalf of the state to invest in the company with state-owned assets. State-owned shares cannot be listed and circulated, but can only be transferred by agreement.
The legal person stock index refers to the stock formed by an enterprise legal person or a unit or group with legal person status, and its assets are invested in the unlisted circulating share capital of the company.
Social public shares are shares formed by individual or institutional investors investing in listed shares, and employee stock ownership also belongs to social public shares.
What are the precautions for compliance risk control of private equity funds?
Pay attention to the problem of qualified investors.
Both the Fund Law and the Interim Measures for the Supervision and Administration of Private Investment Funds require that private investment funds should be raised from qualified investors. And the cumulative number of investors in a single private equity fund shall not exceed the legal provisions.
Pay attention to the compliance of investment.
Investment compliance mainly involves two aspects: first, compliance according to law; Second, in line with the contract. First of all, it should be noted that no investment operation can be made without filing.
Regarding the investment in products, Article 6 of the Interim Provisions of the CSRC on the Operation and Management of Private Placement Management Business of Securities and Futures Operating Institutions (hereinafter referred to as the "new eight bottom lines") stipulates that:
Asset management plans issued by securities and futures institutions shall not be invested in projects that do not conform to the national industrial policies and environmental protection policies (except investment in the securities market), including but not limited to the following situations:
(1) Investment projects are listed in the latest catalogue of eliminated industries issued by the National Development and Reform Commission;
(two) the investment project violates the requirements of the national environmental protection policy;
(3) The asset management plan finally invests in the above projects through penetration verification.
According to this regulation, the fund industry association has made regulation No.4 on the filing management of private placement management plans of securities and futures operating institutions, and securities and futures operating institutions have set up private placement management plans to invest in hot cities where real estate prices have risen too fast, including (currently including 65,438 cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Xiamen, Hefei, Nanjing, Suzhou, Wuxi, Hangzhou, Tianjin, Fuzhou, Wuhan, Zhengzhou, Jinan and Chengdu).