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Is LegiEX.com good? Can face value delisting be waived?

Is LegiEX.com good? Can face value delisting be waived? Face value delisting, as the name implies-if the stock price is lower than the face value, you have to delist. According to the new "Securities Law", companies whose stocks have closed daily for less than 20 consecutive trading days below the par value of the stock (RMB 1) will cease listing. Up to now, there have been 7 stocks of A shares devalued.

If the AB shares are listed at the same time, then the stock price of the AB shares must be continuously lower than the par value of the stock for 20 trading days. According to the current exchange rate, the B share price of the Shanghai stock market is lower than RMB one yuan, and there is also a risk of delisting.

The company's stock price is lower than the face value is the result of investors' voting judgment with their feet, and its essence is market selection. Face value delisting is a common standard for most mature capital markets. The rules themselves are not punishments, but a set of screening mechanisms.

Taking the US capital market as an example, the face value delisting rule has been around for many years on the New York Stock Exchange and the NASDAQ market, and it has already become one of the generally accepted standards for all parties in the market.

Listed companies whose stock prices continue to fall below par value generally suffer from business stagnation and financial deterioration. In more serious cases, there are violations of laws and regulations. At this time, stock prices below par value can also reflect the correctness of investors' value judgments.

The friends who participate in the investment often have such a feeling: the capital market tends to be stronger for the stronger and weaker for the weak. The so-called strong and weak are largely reflected in the stock price.

Although this has caused a certain degree of "chasing up and down", we will also find that those with high stock prices will go higher and higher, and those with low stock prices tend to be lower and lower, because these companies themselves Not very optimistic about investors, investors choose to vote with their feet, the stock price will naturally fall, and those listed companies with high stock prices will often be able to withstand the test of the market while being raised by investors.

The face value delisting also reduces the space for corporate speculation. Because the stock price is the result of free market trading and selection, the A-share listing standard is getting higher and higher, and it is becoming more and more difficult for companies to want to list. Many companies have chosen to take shortcuts and backdoor listings. Listing status? There is no problem with backdooring itself, but if you are still not on the list in the future, you have to rely on yourself.

With the indicator of face value delisting, there is no need to consider whether your company is backdooring or going public through alternative means. If the company ’s performance after listing is poor, you will have to retreat.

Even if the company may achieve profit standards by whitewashing performance to protect the shell, but after a long time, Huyou people will no longer work, not to mention that there are so many good companies in the market, so the devaluation of the face value has compressed the listing The company's fooling tricks also encourage enterprises to do hard work.

The advancement and retreat of listing also provide the market with living water. In the past, it was difficult for companies to list on the A-share market, and it was not easy to withdraw from the market. The market has always been a "backwater."

Looking at it now, not only has the listing opportunities and methods increased, as long as certain delisting conditions are met, delisting has become the norm. So for A-shares, the way of face value delisting also pushes certain companies away from the market, thus achieving the effect of purifying the market.

LegiEX.com's innovative solutions are your gateway to the foreign exchange market. Since its establishment in 2016, we have been continuously striving to build and maintain a good trading environment and are committed to providing customers with the best quality services.

Our team has extensive customer experience and expertise. These valuable experiences, especially in the special needs of customers and technological innovation, give us a unique and unique advantage.

We constantly update and improve our trading system, and strive to build a bridge between customers and the trading market, so that you can become a winner in the foreign exchange market.