Stocks have an exit mechanism. When the performance of a listed company does not meet the exit conditions within a certain period of time, its shares will be delisted. The following is Bian Xiao's collection about the impact of stock delisting. Welcome everyone to have a look.

What is the impact of stock delisting?

With the continuous advancement of capital market reform, the implementation of registration system in IPO stage is the general trend, and the risk of delisting will be further increased in the future. Shareholders need to fully understand the delisting mechanism to ensure property safety.

There are three possibilities for delisting, which have different impacts on investors:

First, under the premise of not violating laws and regulations, the company withdrew from the capital market because of poor management. Due to performance factors, the delisting standard of A-share companies is to suspend listing for three consecutive years (temporarily keep the code and qualification). If they continue to lose money after six months, they will face delisting. Before a listed company withdraws from the market, its stocks will fall one after another. It is difficult to sell stocks at this time. By the time the delisting is completed, investors have lost most of their funds.

Second, listed companies have not completely withdrawn from the capital market, and their stocks continue to trade in the third board market after delisting. The liquidity of the third board market is extremely poor, and most stocks have no trading volume for a day. It is impossible for investors to make a comeback through the third board market.

Third, because listed companies withdraw from the market due to financial fraud, information distortion and other reasons, investors can demand compensation from listed companies here.

For investors, in order to prevent the delisting risk of listed companies, we should actively pay attention to the financial information of listed companies and try to avoid buying stocks starting with ST, which generally have the risk of being terminated from listing. While the reform of the registration system continues to advance, the risk of delisting of listed companies will further increase. At that time, we will try our best to choose high-quality listed companies.

What does equity pledge mean?

Many times, when I saw it, I didn't see the equity pledge more clearly. Literally, it goes without saying that "out" means to remove and outward; "Quality" is the guarantee of expression. In a word, it is the pledge of company equity, which belongs to the category of guarantee.

At present, according to the collected information, equity pledge is equity pledge, but the name is different. Equity pledge exists in many companies. Usually, it means that when shareholders meet the demand for funds, they get credit from the financial department and get funds through pledge. Equity pledge is a kind of guarantee, because of the particularity of equity, it can not be used as collateral, but can only be pledged. After the pledge, if the pledgor fails to pay off the debt due, this part of the shares will be disposed of by the financial institution. In this case, unless the shareholders do not control the company, the problem is very serious and the equity will change directly.

In specific legal documents, equity pledge is not for the purpose of transferring possession, but only as an effective certificate of pledge registration. The main purpose is to restrict the transfer of pledged equity, which does not belong to the change of shareholders' register. Pledged shareholders are still shareholders of the company and enjoy shareholder rights. Because after the equity transfer occurs when the equity is pledged, the remaining funds after the financial institution handles this part of the equity should be returned to the pledgor. What does equity pledge mean? I believe everyone has understood what this is all about. To put it bluntly, it is a way of loan financing, which does not mean that there are problems in the company's operation, and some poor companies have relatively low ability to obtain equity pledge.

Equity pledge often occurs in listed companies, and it is also due to the need of financing, and the specific impact on the stock price is not uniform. Some investors believe that because the company has no funds, it is not good to have problems with cash flow. In order to avoid risks, we should wait and see carefully. Moreover, some investors will think that because the company wants to carry out new projects, it will be good to make profits in the future and can hold shares for a long time.

What does stock pledge mean?

Refers to the borrower's own or third-party equity of a listed company, unlisted joint stock limited company or limited liability company that can be transferred and pledged according to law as collateral to apply for a loan from a bank. Equity pledge loan is an innovation of financing guarantee, which will greatly increase the financing opportunities of enterprises, help to improve the innovation ability of these enterprises, accelerate the upgrading and industrialization of their products, and become a magic weapon for enterprises, especially high-tech small and medium-sized enterprises.