Is the original stock reliable?

The original stocks are unreliable, mainly depending on the company's operating conditions. Original shares do have advantages, as long as the company operates stably, it can be held for a long time. Primitive shares are shares issued before the company goes public. In the early days of China stock market, corporate shares were publicly issued to the public at the issue price in the primary stock market.

Extended data

Look at the underwriter qualification

Buyers should know whether the underwriters are qualified to distribute the original shares. Generally, the original shares underwritten by institutions authorized by the state are sold after careful investigation, and the probability of listing is relatively high. On the contrary, it is easy to be deceived.

Business operation

Buyers should know about the production and operation of sales enterprises. To understand the operating efficiency of an enterprise, we can look at the sales revenue, sales tax and total profit of the enterprise. These figures can be found in the prospectus issued by the enterprise.

Look at the use of stocks

It depends on the purpose of issuing shares. Generally speaking, the purpose of selling stocks is to expand some reproduction projects, introduce advanced technology and equipment, and enhance the development potential of enterprises, which are worth investing. If an industrial production enterprise sells stocks to supplement the liquidity of private ownership, it is necessary to carefully consider whether the enterprise owes too much, whether the purpose of selling stocks is to fill the deficit or repay the losses and debts of the enterprise, and buying such stocks will not create new regenerative value. Therefore, it is impossible to bring good returns to stock buyers, and there are great risks.