There are various types of investment products in the financial investment market. They bring different benefits to people. And it brings different risks. As an investor, you must keep a clear head. Choose the right investment product to invest. Novices need to be more cautious in choosing investment products. In the investment and financial industry, it is a broad investment form. It includes stocks, bonds and other forms of securities. So, what are non-tradable securities?

Non-tradable securities refer to securities that cannot be normally traded and change owners before they expire. These types of bonds are collectively referred to as illiquid securities. It does not mean that they cannot be circulated in the future. It involves expiration. This is for the protection of everyone. Defined to improve the nature of securities.

There are non-tradable stocks in non-tradable securities. Non-tradable shares are stocks that cannot be freely traded in the market. It is different from tradable shares only in circulation rights. Everything else is the same. Non-tradable shares cannot be traded. But it can be circulated through auction or transfer by agreement. This must be approved by the Securities Regulatory Commission. This is the advantage of non-tradable shares over non-tradable securities. Non-tradable securities are a wide range of securities. Non-tradable shares are just a small part of them.

Non-tradable securities have more restrictive factors compared to non-tradable shares. Non-tradable shares are relatively more concise. But it still has drawbacks. The emergence of non-tradable shares divided the stock market into two markets. They are tradable shares and non-tradable shares. So, prices have also changed. This makes it impossible for people to infer the strength of a listed company from the stock price. And under other same conditions, if the proportion of non-tradable shares is large, the proportion of corresponding tradable shares will decrease. This allows large institutional investors to control and influence the price of a certain stock through their capital advantage. Makes the stock market price volatile. It is not conducive to regulation. And non-tradable shares do not participate in the operation of the market. In general, its prices are lower. But the outstanding shares are different. Its cost will be doubled by hype. Dividends are also distributed, but the returns vary a lot. Large shareholders account for the majority, and non-tradable shareholders has no right to speak. Even if the controlling shareholder has operational problems, it cannot be replaced. You can only watch the company stop moving step by step.

The above is some information on non-tradable securities and non-tradable stocks compiled for you. Hope this can help the stock investors. Hope every investor will maintain a rational mind for stock trading. Correct your mentality. Use a scientific perspective to choose reasonable financial products. The stock market is risky, and everyone must choose carefully when investing.

Raymond Mitchell, Author

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