The stock issuance market refers to the whole process of stock from planning to sales. This is a market where fund demanders directly get funds. The establishment of new companies and the capital increase or debt increase of old companies should raise funds by issuing markets and stocks, and transfer funds from suppliers to suppliers, that is, convert savings into investment, thus creating new physical assets and financial assets, increasing the total social capital and production capacity, and promoting social and economic development. This is the role of the primary market. The characteristics of the stock issuance market are: first, there is no fixed place, which can occur in investment banks, trust and investment companies and securities companies, and new shares can also be sold publicly in the market; Second, there is no unified issuance time. Stock issuers decide the issuance time according to their own needs and market trends.
1. The stock issuance market consists of three main factors. These three are stock issuers, stock underwriters and stock investors. The size of the issuer's stock issuance and the actual investment ability of investors determine the stock capacity and the development of the issuance market; At the same time, in order to ensure the smooth progress of the issuance and enable the issuer and investors to achieve their goals smoothly, the issuer underwrites and underwrites the intermediary issuance market of shares, and issues shares on its behalf and collects handling fees. In this way, the issuance market is centered on underwriters, and on the one hand, it contacts issuers and investors and actively carries out stock issuance activities.
2. Under different political, economic and social conditions in different countries, especially the differences in financial system and financial market management, there are various ways to issue shares. According to different classification methods, it can be summarized as follows: this is divided according to the allocated objects. Public offering, also known as public offering, is a way to issue shares to investors who are not specific to the issue target. This can expand the range of shareholders, diversify the equity, prevent hoarding of stocks or being manipulated by a few people, improve the company's sociality and popularity, and lay the foundation for raising more funds in the future. It can also increase the liquidity and liquidity of stocks. Public offering can take the form of direct issuance by the joint-stock company itself, or it can pay a certain issuance fee through financial intermediaries.
3. Non-public offering, also known as private placement, refers to the way in which the issuer only sells shares to specific issuers. It is usually adopted in two situations: first, shareholder allotment, also known as shareholder allotment, that is, in order to mobilize shareholders to subscribe, a joint-stock company allocates the company's subscription right for new shares to the original shareholders according to the par value of the shares. Subscribe. The issue price of such new shares is often lower than the market price. In fact, this has become a preferential treatment for shareholders, and most shareholders are willing to subscribe.
4. If some shareholders are unwilling to subscribe, they can automatically give up the right to subscribe for new shares or transfer their rights to others to form a subscription right transaction. Non-public placement, also known as third-party placement, refers to the sale of new shares by a joint-stock company to employees, customers and other third parties who have special relations with the company. There are two reasons why this method is usually adopted: one is to distribute new shares to specific people at preferential prices to show concern. When the IPO encounters difficulties, both shareholders and private investors should share their support with third parties. Due to the establishment of the issuer, there is no need to raise shares through public offering, which can not only save the handling fee of the entrusted intermediary and reduce the issuance cost, but also mobilize the enthusiasm of shareholders and internal parties to strengthen and develop the company's public relations. However, the disadvantage is that the liquidity of non-public offering shares is poor, which can not be transferred and sold in the open market, and it will also reduce the sociality and popularity of joint-stock companies, and there is a risk that bargaining and control will be eliminated.