Is stock pledging good or bad?

Investors may be confused about "stock pledge", so what does stock pledge mean? Is stock pledge good or bad? The following editor will introduce whether stock pledge is good or bad, which is of great benefit to you. , let’s take a look together.

What does stock pledge mean?

To put it bluntly, stock pledge is actually a financing method. Stock pledge specifically refers to the company's major shareholders borrowing the stocks they hold as collateral (or guarantee) from financial institutions. The borrowed funds are mainly used for capital turnover. Therefore, stock pledge services are generally targeted at small and medium-sized enterprises and entrepreneurs. listed companies. During the stock pledge process, shareholders need to transfer the stocks they hold to the name of the pledgee to ensure the safety and effectiveness of the pledge. If the lender is unable to repay the loan on time, the pledgee can sell the shares held in accordance with the procedures agreed in the agreement to obtain the principal and interest of the loan.

Is stock pledge good or bad?

The pros and cons of stock pledge vary depending on the specific situation:

Pros:

1. Stock pledge can provide corporate financing channels, help companies relieve liquidity pressure, and support production and operations. Especially for some small, private enterprises and other companies that are difficult to obtain credit support from traditional banks, stock pledges can become a necessary financing method.

2. Although it is mainly the company's major shareholders who pledge stocks, some individual investors may also use their own stocks as collateral for loans. Therefore, for individual investors, pledging stocks can make full use of the value of their own stocks, improve their financing capabilities, and respond to market changes more flexibly.

Disadvantages:

1. Excessive stock pledge may lead to increased risks and affect the operation and development of the company, especially during periods of greater market volatility. If the stock price falls, the value of the collateral may be insufficient to pay the principal and interest of the debt, which will in turn lead to increased financial and operational risks.

2. For individual shareholders, pledging stocks may obtain some funds in the short term, but it may also harm the interests of shareholders. Because the pledgee can sell the pledged property according to the agreement, shareholders will lose their equity and affect their long-term value.

In short, stock pledging has both advantages and disadvantages, depending on the situation. For enterprises, they need to control the scale of pledges and avoid excessive debt on the premise of ensuring sufficient funds; for individual shareholders, they need to evaluate their own risk tolerance and establish reasonable investment strategies and risk control mechanisms to ensure that stock pledges will not causing irreparable losses.

Catch stocks with continuous daily limit

In the mid-line stock selection skills, if you want to make a mid- to long-term layout, you have to look at the current market situation. You can refer to the annual line of the market index (250-day line) ) and the half-year line (120-day line). If the trend is above the annual line and the half-year line, it means that it is not a bear market at present. In the face of national policies and the overall decline of the stock market, investors should not take chances to rush for a rebound or choose to buy, but should take advantage of the trend to clear positions and wait and see. If the stock market rises sharply, you should enter with the trend and hold shares in the medium term.

Midline stock selection should be comprehensively analyzed from six aspects: K-line shape, technical indicators, relative price, company fundamentals, market trend, and stock theme. Some stocks with high P/E ratios and prices much higher than their intrinsic value should be abandoned.

As for how to catch stocks with continuous daily limit? The initial stock price increase exceeds 6; it must be "larger"; the greater the increase, the stronger the trend and the more favorable it is. Among the key conditions for the daily limit, it is best to open higher by 2 to 3 points and open lower by no more than 2 points; do not increase the volume during the decline, otherwise there will be suspicion of shipments; the closing price should close near yesterday's closing price. It is best to form a gap.

Analyzing the market price of a stock

It is reported that the market price includes the trend of the stock on that day. Analysis of the market price of a stock mainly includes five parts, namely Commission ratio; five levels of trading orders; opening price and closing price, increase or decrease, minimum and maximum price, volume ratio, internal and external market, total trading volume; turnover rate, total shares in circulation, net assets, income, dynamic price-earnings ratio; buying and selling transactions one.

In the stock market, the market opening of stocks refers to the real-time disk data window during the transaction process. Handicap data usually consists of the entrustment ratio, five levels of transaction order data, stock opening price, stock closing price, stock price increase or decrease, stock highest price, stock lowest price, stock latest price, stock volume ratio, and stock price. External market data, total trading volume of stocks, turnover rate of stocks, total share capital of stocks, circulating share capital of stocks, net assets of stocks, price-earning ratio of stocks, expected returns, net inflows of stocks, bulk inflows of stocks, and stock ownership Comprehensive data composed of sector concepts, etc.

What do we mainly look at in stock fundamentals?

Stock fundamentals mainly look at some macroeconomic policies, the basic situation of the industry and the company, including the company's business philosophy and strategy, company statements, etc.

Macroeconomic policies mainly refer to the impact of some tightening monetary policies and fiscal policies as well as loose monetary policies and fiscal policies on stocks. For example, if the country adopts a loose monetary policy and increases the money supply, it will increase the amount of funds in the stock market to a certain extent, causing the market to rise and individual stocks to rise.

Investors can make reasonable investment strategies by analyzing the industry. For example, if individual stocks belong to high-tech industries, or industries supported and supported by the state, they have huge development potential, and investors can consider buying them in an appropriate amount. The company's basic information mainly includes the company's business philosophy and strategy, the company's financial statements, and the analysis of the company's announcements.