Shareholders need cash, so they pledge their shares to banks or other financial institutions so that they can borrow money to solve the capital problem. If you have 654.38 million shares, the share price at the time of pledge is 10 yuan, and the market value is100000. However, banks usually discount loans and can only lend you less than 6.5438+0 million in cash, for example, only 800,000 or even less. After a period of time, the stock price falls to 8 yuan, and the bank will inform you to increase the pledge or partially repay the loan. You can't increase the pledge and have no money to repay the loan. At this time, the bank will forcibly sell these shares in order not to lose its funds. This is called forced liquidation.