After studying for so many years, investors' education is conducted again, and the management's worries about its risks and care for investors are all in the seemingly cumbersome procedures. Small and medium-sized investors will almost certainly lose badly if they ignore the management's actions and invest too much money in GEM listed companies in the hope of getting rich quickly. What can be gained can only be a very small number of people. Just like gambling, it's ok to gamble a little, but it's ok to gamble a lot. But remember, the risk of GEM stocks is much greater than that of main board stocks, and there are mainly seven risks: 1. Premium risk. You must understand that when you buy stocks, the bid will definitely be several times, ten times, dozens of times or even hundreds of times higher than that of the original shareholders. The people who make the most money may be the original shareholders, and the possibility of eating meat in the primary and semi-primary markets is also relatively high. There is a pot of soup left in the secondary market. Before investors in the secondary market make money with each other, Domestic venture capital enterprises are keen on venture capital, while foreign speculative capital has sneaked into venture capital enterprises in China, to a great extent, because of the ignorance and gambling of China investors. Most of them come to get a ticket and leave, making a shot for a place. 2. Packaging Risk Although the management has strict self-discipline and requirements for the recommenders of GEM listed companies, and strives to ensure the quality of listed companies, the GEM listing rules are inherently looser than the main board. What does it mean to be loose? It means greater uncertainty in the future, which means that listed companies can package themselves more exaggeratedly. In order to get more equity investment price difference, the original investors will certainly spare no effort to package and strive to make the stock price of listed companies far exceed the value of other investments in order to earn more for themselves. The fraud of GEM enterprises is much larger than that of main board enterprises, and it is more difficult to investigate the responsibility. 3. Speculative risk Where there is a dream, there will be a high degree of speculation. If there is a high degree of speculation, there will naturally be a bubble. When many people see GEM companies, they will think of Nasdaq, Microsoft and Bill Gates. In fact, it is still a dream that how many GEM enterprises in China can grow into towering trees. Because of dreams, many people will think that they will find China's "Microsoft" on the GEM, and will take over GEM stocks at a high price. Because of the small scale of GEM stocks, it is determined that there is a great possibility of artificial speculation and speculation in GEM stocks, and bubbles or even huge bubbles are hard to avoid. Once the value returns, or the enterprise withdraws from the market, the fraction of the investor's principal can't be recovered. 4. Risk of valuation indicators We invest in stocks in the main board market, and earnings per share (EPS), return on net assets (ROE) and price-earnings ratio (PE) are the main reference indicators. Due to the different listing thresholds, these indicators are far less stable than those listed on the main board, and are more likely to be fleeting. If investors invest with the main board investment thinking, the investment risk will certainly be magnified many times, and they are likely to think it is relatively safe. This is very dangerous. 5. The range of price limit relaxes the risk. The stock price of the main board market can't rise and fall by more than 1% every trading day, and the rules of the GEM game may be broken. How many times the relaxation will increase the risk by many times compared with the motherboard. 6. Speculation Risk This kind of risk has China characteristics, and the Shenzhen and Shanghai stock markets have always had a new habit of speculation. Due to the small share capital of listed companies, it is easy to speculate. The managers of our fund companies are using other people's children to trap wolves in the stock market, making more profits for themselves, and losing money for investors. It is impossible for management to find out all about building some rat warehouses, so they are likely to be prone to speculation driven by interests, and their stock critics will also add fuel to the flames. The risk of speculation is inevitable. Because of the asymmetric information, the size of the mouth and the unequal control over the media, this risk can only be paid by small and medium-sized investors in the end. 7, technology into benefit risk new technology may not produce high benefits. Some new technologies have obvious achievements, but they are influenced by many factors, such as equipment and technology, the price of other substitutes and so on. The coal refining and wind power generation that were hyped up before last year are examples. As long as the oil price falls to a certain extent, the coal refining project will definitely lose money. Wind power generation is affected by climate, and the output is so unstable that the power grid is reluctant to buy it. These concepts, which were once hyped by the main board of the stock market, are most clear to the followers.