the split comes from the stock market, and the split is a continuation of the five changes to the stock market.
Split and stock market are both platforms for trading, but the trading rules and systems are different.
the stock market will go up and down, and it will go up and down. More than 15 years ago, Mr. Huang Yanqing, a Singaporean Chinese fund manager and a master of the Nikkei index, made five changes and one continuation to the trading rules of the stock market, reformed, innovated all the factors that would cause the stock to fall, and created a simple and simple trading system of volume and price, which created a legend and effect of unilateral rise, only rising but not falling. This is the first generation split disk SMI, which is now renamed FNT.
the first reform to prevent the decline is the reform of supply.
The stock market is a financing platform with unlimited issuance, so it will destroy the relationship between quantity and price. For example, the continuous listing and expansion of new shares, but there is no corresponding increase in funds, which is bound to cause the price to fall! Therefore, the first factor of reform is limited issuance, which has achieved the supply-side reform of the supply-demand relationship.
When the shares were first issued, there were only eight shares in the old eight shares. You can buy any one. Now thousands of listed companies issue shares, but the corresponding amount of funds will cause the stock price to fall. And if we are small A, one share in the world will be issued in a limited amount of 1 million, and we promise never to issue additional shares, which ensures scarcity. Things are rare, so the price will rise.
tomorrow's reform will focus on quantity.