Hello, it is not a good thing for a shareholder's stock to be auctioned, it is a bad news.

The judicial auction of a listed company's stock is a passive and helpless behavior for the major shareholders, so it is bad news. . Generally, the judicial auction of the stocks of listed companies will cause the stock price to fall.

For example: On November 15, 2019, the shares of Loudi Zhongyu, the second largest shareholder of Jinzi Ham Company, were judicially auctioned. The auction involved a total of 61.83 million shares, accounting for the shares held by Loudi Zhongyu 42.94%, accounting for 6.32% of the total share capital of Jinzi Ham. Because the auction amount was relatively large, the company's stock price fell by more than 5% on November 18.

But in the long run, the impact will be limited, because the stocks are auctioned by the judiciary, but the price obtained by the bidders is generally lower than the market price, so there is a price difference to make a profit, so they will not sell in the future. It turns out that in the long run, if the company's operating conditions are still good, then the stock price can also be expected.

However, to be on the safe side, it is recommended to clear positions and wait and see when the stocks of listed companies are judicially auctioned, and wait for the situation to become clear before analyzing whether to buy based on the trend.

: 1: What is a stock?

Stocks are not only part of the ownership of a joint-stock company, but also an issued ownership certificate. It is a type of security issued by a joint-stock company to each shareholder as a certificate of ownership to raise funds and obtain dividends and bonuses. Stocks are long-term credit instruments in the capital market. It can be transferred and traded. Shareholders can share the company's profits with them, but they should also bear the risks caused by the company's operating errors. Each share represents a shareholder's ownership of a basic unit of the business. Every public company issues shares.

Each share of the same class represents equal ownership in the company. Each shareholder's share of ownership in the company is determined by the proportion of shares he or she holds in the company's total capital stock.

Stocks are part of the capital of a joint-stock company and can be transferred and traded. It is the main long-term credit tool in the capital market, but it cannot require the company to return its capital contribution.

2: Main features of stocks

1: Non-returnable. Once the shares are sold, the holder cannot return the shares to the company and can only recover them by selling them on the securities market. principal. Companies that issue shares can not only repurchase or even completely repurchase the issued shares and withdraw from the stock exchange, but can also return to unlisted enterprises.

2: Risk, buying stocks is a risky investment.

3: Liquidity: As a capital security, stocks are a flexible and effective financing tool and securities that can be freely traded and transferred in the securities market.