What is the impact of share freezing on stock price?


As for the freezing of shares in the stock market, I believe many shareholders have witnessed the freezing of major shareholders' shares, but do you know the impact of the freezing of shares?


What is the impact of share freezing on stock price?
1. It will have a certain impact.


2. The shares are frozen and cannot be transferred or sold. The controlling shareholders have lawsuits, most of which are short, but generally the impact is not too great.


3. "The judicial freezing of the shares held by the controlling shareholders will certainly have an impact on the price, but there is also room for arbitrage. Need to study their own stock cases, to see if the causes and consequences of the judicial freeze will thaw, when thaw. The risk is great, but the potential benefits may be greater. "


It has a positive impact on China's stock market. If the total number of stocks issued is fixed, if there are restricted stocks, such as the freezing of the first shareholder, it means that the number of stocks in circulation is reduced, so it is easier to control the stock price, and the funds required are much less. Makers prefer such stocks, which is why small and medium-sized stocks always rise better than large cap stocks.


"For the freezing of shares, there are still disputes in the industry. Xiaobian thinks that the freezing is more likely to be for the regulators to prevent malicious operations, such as to prevent the relevant shares from being sold after the crime."


Undoubtedly, the most concerned issue is what kind of disposal risk these shares will face, and what kind of punishment the shareholders will face. In this regard, more than one securities lawyer told reporters that once it is identified as illegal gains such as insider trading, these shares may face compulsory liquidation and be sold off, and the shareholders will face a fine of one to five times according to the illegal gains. The higher the income, the greater the fine.


"If the shares are sold off, it will have a great impact on the share price of listed companies, especially the holding of more than 5%


 

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