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What is the new stock break

Break refers to the price of a certain in, fall below it in, break the stock is the stock price below the issue price.

So what is it?

Why did he break?

And Xiaobian to understand it together.

In when the share price fell below the issue price is broken.

And the general situation, especially in the bull market is relatively rare, in the market wandering period is common.

The hair in the new stock break is the issue price of the stock.

New shares BREAK HAIR IS TO POINT TO THE DAY THAT THE STOCK IS ISSUED ON the MARKET to fall BELOW the issue price, in the primary market subscription to sign the shareholders also want to lose money.

1. The price of new shares is too high.

This is the key reason why the new shares will break, the new issue price is too high can be more circle money, brokers can also have more “business cooperation” and listed companies.

For example, its PB should be much higher than 3 times, so soon after the opening day broke hair.

2. The market is low.

Under normal circumstances, when the market is in a position to issue new shares is easy to break, take a look at the record of the broken year, it can be proved.

3. The market is maturing.

This is the key reason why the IPO will break, and the maturity is relatively mature. If the issue price is very mature, the new shares will not be issued. At present, it is only gradually not recognized by the market after the opening transaction, so some shares will fall below the issue price after a period of time, such as petrochina.

The above is the small edition of Jintou stock network for you to introduce the content of “what is the new stock break”, more about “what is the new stock break” knowledge please pay attention to the Jintou stock network!