What does it mean that the company reserves its equity?

The company's reserved equity refers to a part of the company's reserved equity, which can be used to motivate core talents and introduce talents in the future. The company's reserved equity can be obtained in the following ways:

1, issuing new shares: the original shareholders' rights and interests may be damaged, and the stock price will fluctuate after issuance.

2. State-owned surplus assets: The company needs to negotiate with the local government and set the proportion of reserved shares in consideration of the interests of all parties.

3. Share buyback by the company: In the case that the company has sufficient cash flow and few investment opportunities, it can choose to retain its equity by way of share buyback by the company.

The company's reserved equity can improve the incentive mechanism of enterprises, delay the incentive and attract more talents.