The reduction of capital by the original shareholders of the company will generally lead to the reduction of the company's assets, weaken the foundation of the company's responsibility, and at the same time reduce the rights and interests of the company's shareholders. If shareholders have a great influence on the company's image, negative emotions will be great.
But sometimes, the original shareholders' capital reduction can improve the financial structure, enhance the current shareholders' equity per share and attract new funds, so the capital reduction may also constitute a profit.
Extended data
classify
Substantive negation
Major losses, main business failure, usually this kind of stock is incurable.
Staged loss
Rising raw material prices and seasonal changes lead to losses and negative effects. Generally speaking, this effect is short-lived.
policy-related losses
Like PetroChina Sinopec, where oil prices are upside down, and real estate stocks with falling house prices.
Policy bearish
Raise interest rates, raise the reserve ratio, issue central bank bills, issue government bonds, restrict the issuance of new funds, speed up the issuance of new shares, speed up the return of red chips, and so on.
Accidents are not good.
Snowstorms, Wenchuan earthquake and Zhouqu debris flow around the Spring Festival in 2008 have affected some industries.
Baidu Encyclopedia-Bad Stock Market