Is the rights issue a good thing or a bad thing?

Rights issue refers to the behavior of listed companies to further issue new shares and raise funds to the original shareholders according to the company's development needs. Whether the rights issue is good or bad can be analyzed from the following four aspects:

1, rights issue is a neutral news, which is not necessarily good or bad for the stock price. The key point is to see how the company intends to use the money from this rights issue;

2, because the share price of rights issue is generally lower than the market price, so if you intend to hold this stock all the time, you must participate in the rights issue, because if you don't, you will lose, but you may not necessarily earn;

3. If you have no confidence in the stock price fluctuation after the rights issue, the best way is to find a high point to sell before the rights issue to avoid the risk of rights issue;

4. Under the influence of the rights issue, the trading will generally be more active a few days before the suspension, and the price will fluctuate greatly. Everyone can take advantage of the opportunity to buy low and sell high.

Tips: The above instructions are for reference only and do not make any suggestions. There are risks in entering the market, so investment needs to be cautious.

Before making any investment, make sure that you fully understand the investment nature and risks involved in the product, and then judge whether to participate in the transaction by yourself after carefully understanding and evaluating the product.

Reply time: 2021-10-19. Please refer to the latest business changes announced by Ping An Bank in official website.

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