ATFXAnalysis: When can the rights issue be traded and there is a risk of investment losses

To obtain stocks, there are mainly several channels: winning the lottery for new shares, buying stocks, and distributing stocks. Compared to the first two, distributing stocks is relatively unfamiliar to investors. In fact, distributing stocks is the act of a listed company issuing new stocks and raising funds from its original shareholders in accordance with relevant laws and regulations and corresponding procedures according to its own development needs. The stocks obtained by investors can be sold.

When can the rights issue be traded?

After going public, trading can begin. As for when to go public, it depends on the announcement of the listed company, which usually takes about half a month after payment. On the listing date of the rights issue, the rights issue shares can be queried and traded. Allotment of shares is generally done during the allotment of shares(Additional issuance)Recorded after clearing on the trading day before the listing date. The regulations of the exchange are that allotment shares can be sold upon receipt and listing, while allotment shares can be sold or held upon receipt and listing6It can be converted into shares after six months.

After the successful issuance of the rights issue, a separate listing date will be announced. Upon listing, the shares can be queried and traded. Please follow the website of the exchange to check the announcement of the listed company and learn about the specific listing date.

Allotment is not automatically credited. Allotment is allocated to the original shareholders who have the right to first subscribe to the stock. If the stock needs to be subscribed, investors need to make the allocation payment on the payment date. Holders can make the allocation at the time specified in the announcement(about5Trading days)If the payment procedures for the allotment of shares are completed within the company, failure to make the payment shall be deemed as a waiver of the allotment of shares.

Number of shares available for distribution=Number of shares held*Allocation ratio. During the allotment payment period, there will be a allotment equity entry in the account, which can be queried through the position menu. The number of positions is the number of shares that you can operate.

For example: holding1000StockAShare allocation ratio3/10(10Stock allocation3thigh)At this time, the available quantity=1000*3/10=300Stocks.

Participating in a rights issue is not an additional profit for investors, nor is it an absolute benefit. However, if the payment is not made in a timely manner, it can cause losses, as there will be ex rights and ex dividends during the rights issue, and the stock price will correspondingly decline.