what is the essence of "board"?

in the stock market, people often say "main board" and "growth enterprise market", but many people just know it but don't know why. Why are these market modules called "boards"?

I think this is a question that most investors have doubts about. In fact, there is no need to entangle this term. Whether it is the main board, the Growth Enterprise Market or other "boards", it is just a financing platform. You can see the functions of the "boards" through the following figure.

to put it bluntly, no matter what board it is, it is a platform to connect investors and listed companies.

as for why it is called "board", it is actually the same as people's names. Why Xiao Ming is called Xiao Ming and why Xiao Hong is called Xiao Hong? There is no particularly meticulous logic, but it is just a symbol.

There are codes of the same kind. Someone asked why the Shanghai motherboard code starts with "6". Why does the Shenzhen motherboard code start with ""? Is there any reason here?

Lao Jiu told everyone that these are just symbols, and there is no need to delve into them. We are here to invest, not to study academics. Besides, you are just like asking why Xiao Ming is called Xiao Ming, because his father called him Xiao Ming. Why does the Shanghai main board start with "6"? Because the CSRC asked him to start with "6".

It is of little significance to study these, and the sense of accomplishment is not high. Just remember that no matter what board it is, the core role it plays is to link investors with listed companies.

why are there so many boards?

at this time, some people may ask, since they all have one function, why not set up more than one board? Why are there so many boards?

this is the strategic issue involving these boards. Lao leek will talk about it one by one.

Motherboard-

Motherboard is also called a first-board market, because it is the first market where listed companies raise funds from the public. As we all know, there is a first time for everything, and the motherboard is actually a test tool, because it was the first time that new China engaged in the capital market, and there were only two motherboards in China, one in Shanghai and the other in Shenzhen.

At that time, the listed companies were basically state-owned enterprises, central enterprises or some obvious leading companies. Because of the concentration of these powerful stocks, this investment and financing platform first established in Shanghai and Shenzhen stock markets really became the main board of the national capital market.

Small and medium-sized board-

Small and medium-sized board, also known as SME board, was passed in 23. In the past, Lao Jiu told everyone that when the capital market was first established in the 199s, the purpose was to make China's capital market grow rapidly, so there was not much demand for individual stocks, and the main purpose was to pursue quantity. After more than ten years of precipitation, China's capital market was relatively stable, and quality became the main purpose.

the core of quality in the capital market lies in differentiation, because the purpose of the capital market is not only to make leading companies more bullish, but also to make less bullish companies become bullish. Therefore, we must set up a market module to provide financing services for small and medium-sized enterprises. So the small and medium board came out. (Small and medium-sized board has been merged with Shenzhen main board at present, so don't care too much).

Growth Enterprise Market-

Growth Enterprise Market is actually the real small and medium-sized board, because after the small and medium-sized board came out, although the name has changed, the circulation conditions have not changed, that is to say, everyone should buy as usual, and there is no fear for the risks of small and medium-sized enterprises. After a period of time, it was found that although these enterprises have been financed, the risks of investors are too great. After all, most investors don't look at any fundamentals, but they have to call the hotline of the Securities and Futures Commission if they lose more, which is not good.

So the Growth Enterprise Market (GEM) came out. The emergence of GEM completely distinguished the main board from small and medium-sized enterprises. Not only was there a big difference in listing threshold, but there were also trading conditions. This is not to say that everyone is forbidden to speculate in stocks, but to tell you in this way that you are about to buy GEM stocks with relatively high risks.

The GEM has not only changed its trading conditions, but also its code features are very striking. Starting with "3", people can recognize that it is a GEM stock at a glance, unlike a small and medium-sized board stock, and the code is sometimes confused with the Shenzhen main board.

science and technology innovation board-

science and technology innovation board is independent from the main board and the Growth Enterprise Market, because science and technology innovation board is more risky, and it can only be played by people with relatively rich family background who can't call the hotline. Many people wonder why science and technology innovation board is needed in this case.

because of development, science and technology are the primary productive forces, but how can we develop science and technology without money? Always supported by the state treasury? The treasury can't always support it, can it? What if trillions of countries lose money without market testing? Besides, it always depends on the support of the state treasury, and eventually it all becomes state-owned enterprises, but also scientific and technological innovation? Dream!

So we can only go public to make everyone's money, but the approval system can't go up, and we can't push them all to foreign markets. Then we should simply set up our own registration system and let all these technology stocks that can't make money for the time being go public, whether it's mules or horses.

In order to prevent these small businesses from losing money, we simply set up a new market module, and don't come in if there is little money. Besides, I also told you in advance that this is called science and technology innovation board, which is a platform for companies with scientific and technological innovation to come up, and it is very risky.

New Third Board-

The New Third Board is completely independent of the above markets, because it basically has no financing function. Why? Because he doesn't trade as fast as ordinary stocks, he can only trade in the form of share transfer. For one thing, the trading threshold is quite high, because the probability of bankruptcy of the New Third Board is also quite high.

To tell a cold story, the New Third Board is actually the first domestic market for registration system, not science and technology innovation board, which started in 19 years.

then why do you want a new third board? To put it bluntly, give some small and micro enterprises a chance to show their faces, and at the same time give a hope, because the purpose of the New Third Board is the transition period from enterprises to the Growth Enterprise Market, and the other is to let the market find the gold buried in the sand, so many small and micro enterprises must be able to become big companies.

Of course, the New Third Board is currently divided into basic layer, innovation layer and selected layer. Lao Jiu thinks that everyone should try not to touch the stock of the New Third Board, and most friends probably have no chance to touch it, so I won't say much about these three layers. You can leave a message or a private message if necessary.

After reading the above contents, Lao Jiu believes that everyone should understand why different market modules should be distinguished. The reason is very simple. According to the affordability and professionalism of investors in the market, imagine that if all companies are mixed in a "board", the trading mechanism must be the same. In that case, according to the nature of our A-share friends, it is estimated that more than 1, stocks on the New Third Board will have to be speculated one by one.

what are the differences between these boards?

Above, Lao Jiu only said the strategic differences between these boards. Now let's talk about the specific differences. Lao Jiu made a table according to his own statistics, and the differences from the main board and the Growth Enterprise Market to science and technology innovation board's listing are all in it, as shown below:

Lao Jiu also made a picture about the differences of trading systems, as shown below: