The acquisition of listed companies means asset reorganization, which is an opportunity for listed companies to improve their operating conditions. Theoretically speaking, for the acquired or merged companies, mergers and acquisitions will make people have positive expectations for the acquired or merged companies, thus making the stock prices of these companies rise. Although it may not have a positive effect on the acquirer in theory, at present, most mergers and acquisitions in China's capital market are beneficial to listed companies, because for the acquirer, most of the assets injected by these companies belong to excellent assets, with good profit prospects in the future. It is worth noting that behind the surge in the company's share price due to restructuring, there is often a trap of injecting high-valued and low-profit assets. Relevant experts believe that high premium and high valuation are common phenomena in the A-share market. Before the delisting mechanism and market maker system are not perfect, many ST enterprises will choose mergers and acquisitions to revitalize their stocks, and major shareholders often boost shipments by injecting assets.
So generally speaking, if a listed company is acquired, if the merger and reorganization is successful and the stock rises, it is good; If the merger and reorganization is unsuccessful and the stock falls, it will be bad.
Tips:
1. The above instructions are for reference only and do not make any suggestions.
2. There are risks in entering the market, so investment needs to be cautious.
Reply time: 2020- 12-23. Please refer to the latest business changes announced by Ping An Bank in official website.
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