Basic knowledge of stock entry, a must-see

What are A shares, B shares, H shares, N shares, s shares

The stocks of listed companies in China are divided into A shares, B shares, H shares, N shares and S shares. This distinction is based primarily on where the stock is listed and the investors it faces.

The official name of A shares is RMB common stock. It is a common stock issued by our domestic company for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong and Macao investors) to subscribe for and trade in RMB. Began to take shape.

The official name of B shares is RMB special stocks, which are denominated in Renminbi and are subscribed and traded in foreign currencies. Its investors are limited to: natural persons, legal persons and other organizations in foreign countries, natural persons, legal persons and other organizations in Hong Kong, Macau, and Taiwan, and Chinese citizens residing abroad. Other investors as required by the China Securities Regulatory Commission. At this stage, B-share investors are mainly institutional investors in the above categories. The registration and listing of B-share companies are in China. It’s just that investors are overseas or in Hong Kong, Macau and Taiwan.

H shares are foreign shares registered in the Mainland and listed in Hong Kong. Hong Kong’s English is HOngKOng, which is the first word. Foreign shares listed in Hong Kong are called H shares.

N shares refer to those foreign shares registered in Mainland China and listed in New York.

In China’s stock market, when the N appears before the name of the stock, it means that the stock is a newly listed stock on that day, and the letter N is the abbreviation of English New. When seeing a stock with an N prefix, in addition to knowing that it is a new stock, investors should also realize that the stock price of this stock is not subject to changes in the market on that day, and the increase can be higher than 10%. Can be deeper than 10%. This makes it easier to control risks and seize investment opportunities. Such as N Beihua, N CCB, N Petroleum, etc.

S-shares in China refer to stocks that have not undergone a share-trading reform or have entered the reform process but have not yet implemented a share-trading reform plan. Add S before the name of the share. This mark has been activated since October 9, 2006. Still up and down 10% (ST shares are 5%). From January 8, 2007, the daily increase or decrease was adjusted to 5%.

S shares refer to corporate stocks whose core businesses, such as core production and operation, are located in mainland China and the company is registered in the Mainland, but are listed on the Singapore Exchange.

Ordinary shares refer to shares that enjoy ordinary rights in the company’s operating management and profits and the distribution of property. They represent the satisfaction of all claims for claims and the right to claim profits and residual property of the company after the shareholders’ right to claim and claim for rights. It forms the basis of the company’s capital and is a basic form of stock. It is also the largest and most important stock.

The stocks currently traded on the Shanghai and Shenzhen stock exchanges are common stocks.

Preferred stocks are stocks that the company gives investors certain priority when raising funds. This priority is mainly manifested in two aspects:

① Preferred shares have a fixed dividend, which does not fluctuate with the performance of the company, and can receive dividends before ordinary shareholders;

② When the company goes bankrupt for liquidation of assets, the shareholders of the preferred shares have the right to claim the shares of the common shares of the company first. However, preference shares generally do not participate in the company’s dividend distribution, and shareholders do not have the right to vote, and cannot participate in the company’s management with the help of voting rights. Therefore, compared with common stocks, although the returns and participation in decision-making are limited, the risks are relatively small.

As its name implies, superior stocks are stocks of companies with good performance, but the definition of superior stocks is different at home and abroad. In China, the main indicators for investors to measure outstanding stocks are after-tax profit per share and return on net assets. Generally speaking, after-tax profit per share is in the upper middle position among all listed companies. After the company’s listing, the company’s return on net assets significantly exceeds 10% for three consecutive years. Excellent stocks have higher investment returns and investment value.

Junk stocks are stocks of companies that perform poorly. Some of these listed companies have entered the ranks of loss either because of poor industry prospects or poor management. Its stock’s performance in the market is sluggish, its stock price is lower, trading is not active, and year-end dividends are also poor. Investors should have a relatively high sense of risk when considering choosing these stocks, and must not blindly follow the speculation.

Blue-chip stocks—In the stock market, investors refer to the stocks of large companies that have important dominant positions in their industries, have good performance, are active in transactions, and have good dividends. The term “blue chip” comes from western casinos. In western casinos, there are two colors of chips, of which blue chips are the most valuable, red chips are second, and white chips are the worst. Investors have applied this jargon to stocks to get the title.

The concept of red chips was born in the Hong Kong stock market in the early 1990s. The People’s Republic of China is sometimes called the Red China internationally. Correspondingly, Hong Kong and international investors refer to those stocks with the concept of Mainland China that are registered overseas and listed in Hong Kong as red-chip stocks.

What are stock bonuses, dividends, and rights issues

The bonus issue means that the listed company distributes profits (or capital increase) to investors in the form of bonus shares to increase the shares held by investors and obtain investment income.

Dividends refer to dividends issued by listed companies in cash. This distribution method requires income tax. At the time of distribution, the current dividend and dividend income can be automatically entered into the shareholders’ account.

A rights issue is a way for a listed company to give investors a chance to invest in shares again. This is not a profit distribution method. After a listed company announces a rights issue, shareholders need to sell the corresponding rights warrants.For example, Tomorrow Technology (600091) is allocated 3 shares for every 10 shares.If the original 100 shares are sold, investors must sell 30 shares of Tomorrow Technology during the payment period after the ex-right A rights issue certificate (700091) and sufficient rights for the rights issue will be successful. The rights issue is subject to trading after the listing of the rights issue.