Foreign private equity funds purchase company stocks_How foreign private equity funds operate

Can foreign private equity funds also be used to purchase company stocks? How does it work specifically? For many people Maybe foreign private equity funds can only be used abroad, so the editor specially brings you foreign private equity funds to buy company stocks. I hope you like it.

Foreign private equity funds purchase company stocks

1. Investors need to fill in a questionnaire first and promise to meet the investment standards, and clarify the risks they need to bear when investing in private equity funds.

2. Participate in product recommendation meetings and choose products that you can afford.

3. After investors choose the private equity products to invest in, they sign a risk disclosure form.

4. Provide asset certificates, with financial assets of no less than 3 million yuan or personal annual income in the past three years of no less than 500,000 yuan.

5. Understand the risks and confirm the investment before signing the contract and making payment. There will also be a 24-hour cooling-off period for investors to choose whether they need to withdraw their capital.

How private equity funds operate

Private equity funds are a broad concept, and investment institutions of different types of funds can be called private equity funds. Sunshine private equity in the market are now some legal trust speculation institutions, and their fund-raising methods are mostly large-scale high-end customers that they are familiar with. There are also some forms of agency entrustment between relatives and friends, which bear certain moral risks.

So, if you want to set up a private equity fund, you must first have certain network resources

1. Have very rich experience in a certain investment field (such as stocks, futures, foreign exchange, gold, etc.) , it is best to make stable profits for a long time.

2. Formulate instructions including fund raising, investment direction, sharing, risk control, etc.

3. Have a group of wealthy people who support you and provide you with the funds you want.

4. Have a research team to closely track market changes and formulate plans.

5. Have a sophisticated and strict system to enable your plan to be truly implemented.

6. Since private equity is in a gray area, it should be able to resolve some unexpected troubles.

Start from a young age, act within your capabilities, and be low-key and rigorous.

Characteristics and advantages of private equity stocks

Compared with company stocks in the public market, private equity stocks have the following characteristics:

1. More restrictive conditions More: In most cases, private equity investments are made in assets that meet relevant criteria or high-net-worth individuals, and therefore need to meet investment thresholds.

2. Small market scope: Since transactions are not promoted on public stock exchanges and are only open to a small number of high-end investors or institutional investors (such as funds, family offices, etc.), their transactions are The volume and scope are relatively small.

3. More flexible: From the corporate management structure to the operating model, there is greater freedom in all aspects.

What are the stocks worthy of long-term investment?

1. Large-cap stocks

In a bull market, whether it is a large-cap stock or a small-cap stock, there will be a relatively large increase, and many large-cap stocks do not necessarily increase less than small-cap stocks. But everyone must also be aware that when large-cap stocks tend to fall, large-cap stocks tend to have smaller declines than small-cap stocks, and it is rare for them to continuously fall below the limit. This means buying large-cap stocks, we have enough time to sell.

2. Net-breaking stocks

The so-called net-breaking stocks mean that the stock price has fallen below the net assets per share. The stock market has fallen sharply this year, and there have been many stocks that broke the net. This does not mean that these net-breaking stocks have no value, but that their value has been underestimated by the market.

If the net assets per share of a stock are regarded as its actual price, then whether it rises or falls, the final price will move closer to this actual price. Therefore, net-breaking stocks are also one of the stocks that we can consider for long-term investment.

Theoretical price of stocks

Stocks represent the shareholder rights of the holders. The direct economic benefits of this kind of shareholder rights are in the form of dividends and bonus income. The theoretical price of a stock is the price paid to obtain the right to claim such dividends and dividend income, and is a manifestation of dividend capitalization.

Statistically, dividend income and interest income have the same meaning. Whether investors invest funds in stocks or deposit them in banks depends first on which investment has a higher rate of return. According to the theory that equal amounts of capital obtain equal amounts of income, if the dividend rate is higher than the interest rate, people's demand for stocks will increase, stock prices will rise, and the dividend rate will decrease until the dividend rate is roughly the same as the market interest rate. until consistent.

According to this analysis, the theoretical price formula of stocks can be derived as:

Theoretical stock price = dividend income/market interest rate