Reinstatement is to repair the stock price and trading volume, draw the stock price trend chart according to the actual rise and fall of the stock, and adjust the trading volume to the same equity caliber. After stock ex-dividend and ex-dividend, the stock price has changed, but the actual cost has not changed. For example, the original stock in 20 yuan was 10 yuan after giving ten for ten, but it was actually equivalent to 20 yuan. From the K-line chart, this price seems to be very low, but it is likely to be a historical high.

Pre-right recovery means keeping the current price unchanged, reducing the previous price, and shifting the K-line downward before the ex-right, so that the graphs are consistent and the continuity of the stock price trend is maintained.

The recovery function can eliminate the trend distortion of prices and indicators caused by ex-dividend and ex-dividend.

After the listed company sends shares, the number of shares is increased, but the value of shares remains unchanged, so the price of shares is low, and there is a gap on the K-line chart, which is called ex-rights. Pre-reinstatement is to measure the market cost price of stocks before ex-dividend on the K-line chart based on the ex-dividend price.

Pre-reinstatement: post-reinstatement price = (pre-reinstatement price-cash dividend) ÷( 1+ change ratio of circulating shares)