What are the main points of buying stocks privately? How to understand the private placement of stocks? What are the main knowledge points of the stock market? The following are the key points of private equity buying compiled by Bian Xiao. I hope I can help you.
What are the main points of buying private equity?
1. In terms of fund raising, it is mainly raised by a few institutional investors or individuals by private placement, and its sales and redemption are carried out by fund managers through private consultation with investors. In addition, the investment method is also carried out in the form of private placement, which rarely involves the operation of the open market and generally does not need to disclose the details of the transaction.
2. More equity investment is adopted, and debt investment is rarely involved. Therefore, PE investment institutions enjoy certain voting rights in the decision-making management of the invested enterprises. Reflected in investment instruments, common stock or transferable preferred stock and convertible bonds are commonly used.
3. Generally investing in private companies, that is, unlisted companies, and rarely investing in publicly issued companies, will not involve the obligation of tender offer.
Is private placement a risk stock?
Generally speaking, private placement refers to private equity funds. The so-called private equity fund refers to a fund set up to raise funds for a few investors in a non-public way. Because the sale and redemption of private equity funds are conducted through private consultation between fund managers and investors, they are also called funds raised from specific targets. This is a private placement relative to public funds (securities investment funds that people can usually subscribe for). At present, there are formal private equity funds supervised by regulatory agencies and issued through trust companies and other channels in China, also known as sunshine private equity, and underground private equity raised by individuals.
What are the risks of private equity investment?
Intellectual property risk is of special significance to scientific and technological enterprises. Private equity investment, especially venture capital, values the core technology of the invested enterprise. If the ownership of the core technology is flawed (such as the invention of the technology by the entrepreneur at the original employer), it will obviously affect the entry of venture capital, and even bear the responsibility for breach of contract or contracting negligence. For this kind of risk, enterprises must confirm the ownership of core technology through professional evaluation.
Benefits of private equity financing
Being able to get the top private equity fund itself proves the strength of the enterprise. Just as the effect of listing is similar, enterprises will gain popularity and credibility, win customers more easily, and win the initiative in various negotiations more easily. Companies with top private equity funds usually operate more efficiently and can greatly improve their performance in a short time. Enterprises can expand production scale through financing, reduce unit production cost, or expand competitive advantage through mergers and acquisitions. Enterprises can use the capital and professional advantages of private equity financing to achieve rapid expansion.
What is the stock sector?
Stock plate refers to a group of stocks that are artificially classified together because they have some * * * same characteristics, or some stocks in the same industry are classified as one class of stocks. This feature is often used by so-called stock market makers to speculate. Some characteristic stock plates may be regional, such as "Jiangsu plate" and "Pudong plate"; Some may be performance-oriented, such as "excellent sectors"; Some may be related to the business behavior of listed companies, such as the "merger and reorganization Committee"; There are also industry classifications, such as "steel plate", "technology plate", "financial plate" and "real estate plate" and so on. In short, almost anything can be named as a plate, as long as the name can become the subject of stock market speculation. There are many "plates" that are introduced to the market as hype themes. Give an example to illustrate. At the end of 1995, the stock market launched the so-called "warrants and transfer concept stocks". If you are interested, you can watch china securities journal or shanghai securities news at that time. At that time, relevant newspapers published articles or sought after them, or analyzed the so-called warrants and transfer concept stocks. Behind these articles, speculators in Shenzhen have been speculating on warrants, and a group of blind followers in the market are also enthusiastically sought after. As a result, except for the listing of rights and warrants, the stock price fell all the way, and followers had to admit that they were unlucky.