First, the stock market value of loss-making companies is easily accepted by investors. Retail investors can control the profitability of stocks in a short time. Although this market value is not high, it can meet the psychological needs of ordinary investors to buy stocks. The loss of company performance will make speculators have speculative psychology and make them daydream about getting rich overnight.
Secondly, loss-making companies generally welcome new institutional investors. At this time, the company can use its own capital advantages to attract many investors to speculate. The greater the momentum of their speculation, the more investors will join and attract hot money. At this time, we can use the funds of institutional investors to quickly raise the stock price, and then retail investors will believe that the changed company shares are potential stocks and will inject more funds to buy stocks. This is the story behind the loss-making stock. After absorbing many people's funds, loss-making companies can sell their stocks at high prices and get away with it.
Third, loss-making companies have low share prices and are easily accepted by most investors, so many investors are welcome to join. Its share price has appeal, and many people will have speculative psychology. They think that the stock price is low now and there is room for growth. They don't mind making less money now, and they hope to turn over one day. Moreover, according to China's auditing system, if a loss-making company wants to withdraw from the market, it must have a good company to take over. In this case, people who buy loss-making stocks will make a lot of money, so many investors and investment institutions like loss-making stocks. Therefore, the stock of loss-making companies has become a hot potato, and more and more people buy it.