The difference between GEM a and GEM B: 1. Different risks: GEM B has a certain degree of leverage. It obtains the right to use A's funds by paying interest to A to expand leverage. After paying interest, the overall investment profit and loss is borne by B.
share borne.
2. Different income: Due to the existence of leverage, the income of GEM B is doubled when the market is favorable, while the income of GEM A mainly comes from interest.
The full names of GEM A and GEM B are respectively: Wells Fargo GEM Index Grade A and Wells Fargo GEM Index Grade B. These two funds are different shares of the same parent fund and are a graded fund.
In fact, both GEM A and GEM B are hierarchical funds with higher investment thresholds and need to meet the capital threshold of 300,000.
Introduction to GEM: GEM, also known as the Second-board Market, is the second stock trading market. It is a type of securities market different from the Main-Board Market. It is designed for companies that are temporarily unable to be listed on the Main Board.
The securities trading market provides financing channels and growth space for entrepreneurial enterprises, small and medium-sized enterprises and other enterprises that need financing and development.
The GEM is an important supplement to the main board market and occupies an important position in the capital market.
The stock codes of companies listed on the China Growth Enterprise Market start with "300".
Compared with the main board market, the GEM listing requirements are often more relaxed, mainly reflected in the requirements on establishment time, capital scale, medium and long-term performance, etc.[1]
The biggest feature of the GEM market is its low entry threshold and strict operation requirements, which helps potential small and medium-sized enterprises obtain financing opportunities.
Most of the companies listed on the GEM market are engaged in high-tech businesses and have high growth potential. However, they are often established in a relatively short time and are smaller in scale, and their performance is not outstanding, but they have a lot of room for growth.
It can be said that the GEM is a stock market with low threshold, high risks and strict supervision. It is also a cradle for incubating technology-based and growth-oriented enterprises.
GEM (Growth Enterprises Market Board) is a secondary securities market inferior to the main board market. It is represented by the NASDAQ market and specifically refers to the Shenzhen GEM in China.
There are major differences from the main board market in terms of listing thresholds, regulatory systems, information disclosure, trader conditions, investment risks, etc.
On April 27, 2020, the "Overall Implementation Plan for GEM Reform and Pilot Registration System" was passed.