1. If the fund keeps falling, will it disappear in the end?
No, so the stock will not fall to 0 all the time. According to the relevant delisting regulations for stocks, if the stock price falls below 1 yuan for 20 consecutive trading days, it will be forcibly delisted.
The A-share market has an increase or decrease limit of 10%. In addition, if a listed company's stocks undergo special treatment, they will be labeled with an ST delisting risk warning signal, and the stock price will be limited to a 5% increase or decrease. Through the above situation analysis, the stock price will not always fall to 0. If a listed company becomes insolvent and becomes bankrupt, it will enter bankruptcy proceedings only after the stock is delisted.
If an investor’s stock is delisted, the delisted stock will enter the third board market for trading, and the stock originally circulating on the exchange will be transferred by the securities company that is the proposed stock transfer representative, and will be transferred on the 45th Agency stock transfer system transactions during working days. Investors open the third board trading authority and conduct transactions and sales through the third board market. However, for this type of delisted stocks, the delisting price of the stock will be greatly reduced and the liquidity will be weak.
2. What will happen if the stock keeps falling?
For stocks that have been falling or even going to be delisted, this will often cause investors in the market to rush to sell their stocks in panic, resulting in the stock continuing to fall, or even falling to the limit. On the contrary, if the decline of individual stocks is due to market conditions or the impact of the operating performance of individual stocks, and there is no delisting situation, the stock price will not continue to fall. Therefore, when individual stocks experience a long-term decline, investors can choose the following investment strategies:
1. Cut the flesh
If investors believe that the stock will still have a larger decline in the later period In order to reduce the losses caused by the falling stock price, you can choose to cut the meat.
2. Covering positions
If investors believe that the decline of the stock is affected by market conditions and will rise later when market conditions improve, investors may consider In the process of individual stocks falling, cover-up operations are performed to reduce the cost of holding positions. At the same time, during the process of cover-up, positions should be reasonably controlled.