Stock entry: stock price First, the value of the stock In essence, the stock is only a certificate, its role is used to prove property rights holders, rather than general merchandise includes use of the same value, so the stock did not value their own, can not have prices. But after holding the stock, shareholders will not only attend the general meeting of the company's shares to influence business decisions, and also to enjoy the dividends and dividend rights, access to appropriate economic benefits, so the stock is a virtual capital, as a special commodity into the market negotiable. The value of the stock is in the form of monetary profit as a means to measure the value of the stock. The so-called profit means, that by virtue of the stock, the holder can obtain economic benefits. Interests of the larger, the higher the value of the stock. The value of the stock, there are face value, net liquidation value, market value and intrinsic value of five. 1. Shares of face value. Par value shares, the shares are shares issued by the company indicated on the face value, it per A share as a unit, whose role is to show that each one contained in the amount of capital stock. The nominal value of shares of stock are generally printed on the front and basically are integers, such as the hundred dollars, ten-dollar, and then one element and so on. China's Shanghai and Shenzhen Stock Exchange in the shares in circulation, and its face value are unified as One million, one dollar per share. The initial face value of the stock objective is to ensure equity holders is the time to recover the divestment of the indicated nominal assets. With the development of the stock, buy stocks will no longer Divestment, so the role of par value is one that shares of stock subscription in the share of investment, as recognized under the rights of shareholders. If a listed company's total share capital of ten million yuan, holding an equity stake in the company, says the share is one ten-millionth. The second effect is that when the first issue of shares will be issued shares of face value as a basis for pricing. In general, the issue price of the stock will be higher than the face value of all. Flow into the secondary market when the stock after the price of the stock's par value and stock separation, and with each other and there is no direct link, investors how much love it fried, it will be high, as in previous years Some of the Shanghai stock market share prices had reached 80 yuan, but its also just one dollar face value. 2. The net value of the stock. The net value of the stock, also known as book value, also known as net assets per share, referring to the method of accounting per share calculated from the net asset value included. The calculation method is to add all kinds of company's registered capital fund, accumulated surplus, which is commonly referred to as equity, will be divided by the total net asset value per share equity is. The carrying value of the stock shares after the company removed the actual possessions of all the debt is the net assets of joint-stock companies. Accounting book value is calculated as the result, the number of higher degree of accuracy, reliability strong, so it is the stock of listed companies for investors to assess and analyze the important basis for operating strength. Shares of the company's book value, then the real property owned by the shareholders of the more; the other hand, stocks with low book value, shareholder-owned property for less. Although the book value of the stock is an accounting concept, but it investment analysis for investors with large reference, it is also produced directly from the stock price, because the stock price more close to the net assets per share, the more close to the price of the stock the book value of the stock. In the stock market, investors concerned about the joint-stock companies in addition to the operations and profitability, the need to pay special attention to the stock's net asset levels. Higher levels of net assets, the company owned its own capital to the greater ability to resist various risks will be. 3. The liquidation value of the stock. The liquidation value of the stock, shares of the company is bankrupt or be liquidated after the collapse of the stock represents a share when the actual value. In theory, stock liquidation value per share and stock book value should be consistent, but the company in bankruptcy liquidation, the value of their property based on actual sales price data, and during disposal of property, its sale prices are lower than the actual value. Therefore, the liquidation value of the stock with the stock's value is not consistent and generally have less than the net. The liquidation value of the stock shares of the company only in bankruptcy or for other reasons due to the loss of legal personality to conduct the liquidation only to be the basis for determining the stock price, the stock issued and outstanding process is meaningless. 4. Stock market value. Stock market value, also known as the stock market, refers to the process of stock trading in the trading price reached by both sides. Direct reflection of the market value of the stock market, stock quotes, stock trading is the basis for shareholders. Due to many factors, the market value of the stock in the regular changes. Stock market value is closely linked with the stock price, stock price is the concentrated expression of the value of the stock market, the former occurrence of subsequent changes in those corresponding fluctuations. In the stock market, investors are based on the stock market value (stock market price) to analyze and judge the level of change and determine stock prices, so-called stock price is the market value of the stock. 5. The intrinsic value of the stock. The intrinsic value of the stock is at some point the true value of the stock, it is the investment value of the stock. Calculate the intrinsic value of the stock discounted required, Life of the listed companies, profit after tax per share, the average investment rate of return and the community are all unknowns, so difficult to calculate the stock's intrinsic value, in practice, usually take forecasts. Second, the operating results and stock price Stocks, although there are a variety of subjects, but in general, results of operations are generally fried or results of operations related to the subject matter. So in the stock market, stock price and operating performance of listed companies was a positive correlation between better performance, higher stock prices; poor performance, stock prices will correspondingly lower. But this is not absolute, some of the operating results of the stock so a few cents per share on its price performance ratio several times better than its stock even higher, which in the stock market is very normal. Because stock prices are determined by the competition, as long as investors are willing to have sufficient funds, and law-abiding in the stock trading process, the final transaction price for a party to the decision by the highest bidder. In theory, results of operations of the stock prices are usually expressed in two formulas, one is a static formula price, and the other is a dynamic formula, the net state is calculated as follows: P=L/i Where P is the stock price, L is the per share after-tax profits, i is for other investments, investors can get the average profit rate of investment, savings rate tends to be used instead, because the savings in the current shareholders of the most common and can The most convenient way to invest. The significance of this formula is that when investors engage in other investment income per dollar i get, if the stocks in the investment income to obtain L, shareholders must pay the amount of funds to the P, this time, the proceeds to invest in stocks and other investment are equal. Such as the one-year deposit rate to 10.98%, is a stock's after-tax profit of 0.66 yuan per share, according to the above formula, the share price to 6.01 yuan. At this point, will be 6.01 yuan to invest in stocks or to deposit banks, the investment income are the same. In the above formula, the stock price and results of operations proportional to the average profit margin is inversely proportional to other investments. If the operating performance of listed companies to raise or lower interest rates of savings, will result in stock prices are rising. As May 1996, the Chinese People's Savings Bank lowered interest rates twice to lead the Shanghai stock market stock prices more than doubled. However, the formula used to calculate the stock price is not accurate. In fact the share price on the stock market is not thus determined, the factors that affect stock price changes are not only the operating results and the average profit rate of investment both. In addition, the company's operating results will be listed as the business environment and product market competition and change. The above example, if the next year, the operating results of listed companies dropped to 0.55 yuan per share, calculated here, and its stock price will fall to 5 yuan more. If the shareholders during the year to predict the performance of listed companies will reduce next year, you will not use the price of 6.01 yuan per share to buy the stock, but only with the price of 5 yuan to buy more stock. Stock price above This calculation is a net state law, it assumes that the selected parameters, such as after-tax profits and stock savings rate is static, the result will certainly be a considerable error. Although the stock price is difficult to use a precise formula that, but one thing, it is always and performance of listed companies that profit after tax increase or a positive correlation between the two. Greater after-tax profit, shareholders of investment income will be high and, correspondingly, the higher the price of the stock. Third, the average profit margin and stock price The average profit margin is about an objective law of capital flows, the effect that: When the two departments there are differences between the profit rate of investment, the funds will be from low-margin sector departments to the flow of high profit margins, profit margins until the two almost equal investment in the sector. Popular with the words to express an average profit margin rule is: Going with the flow, capital to go to a place of high profit margins. Stock price is directly affected by the situation in the supply of funds, when the funds into the stock market increases, the price of the stock price will go up, such as the good news is introduced, to have access to external capital markets, causing stock prices. The end of July 1994 announced the "three policies" and May 17, 1995 announced the news to suspend bond futures have lured a lot of money into the market, to varying degrees, led to the stock market's surge. Withdrawal of funds out when the stock market, the stock price will decline. When a field of investment profit rate changes, stock market and investment between the field margins will produce a potential difference. Law based on the average profit rate, the stock market and the investment capital flows occur between, and the results will cause liquidity of stock price changes. Investors to invest in the stock market, the expectation is to reap excessive profits, which receive more than the social average profit level of investment income. And all the investors in the stock market operations (buying and selling) are the concentrated expression of the average profit margin rule. Taken together, the average profit margin on the stock price of regular has the following four aspects. 1, to the price positioning Most of the investors to buy shares of the motivation is that the stock will rise, and rise within a year will certainly be higher than they can get involved in the investment field, otherwise, investors will be funding to other areas of high profit margins. The investors will be pouring money into the stock market results, driving shares will be gradually increased flooding, resulting in a decline in stock returns. When the results of the campaign funds to other areas of the stock returns is close to the average level, investors were buying stocks and other investment income on the basic equal, then capital flows will tend to be flat, the stock will remain at a considerable level, neither up nor down. Therefore, the average profit margin rules have to locate the role of stock prices. For the general public, its financial strength smaller, but also take into account the work, its main investment channels at this stage, that is, bank savings, purchase of bonds and stock investments. Since almost no risk at all bank savings and does not spend much time and effort, so the general public savings bank of choice for investment. To make equity investments, interest rates generally will be the expected return as equities. When the proceeds to invest in the stock is greater than the bank deposit interest rates, people will choose stocks; the other hand, when the bank deposit interest rates higher than the stock rate of return on investment, people will choose to save. So, when a stock market investors are more rational and mature, the stock market and investment income will be where basically the savings rate equal to one-year, and thus its stock price will stabilize at a level corresponding to this. The measure of a stock market investment profit rate of return is usually the inverse of the stock price - the stock market average price-earnings ratio, profit margin and investment in the stock market average price-earnings ratio is the inverse relationship between, when the stock returns and bank savings rate equal to one-year When will include: Stock market average price-earnings ratio ¡Á year bank deposit rate = 1 When the bank's deposit rate is determined, the stock market's price-earnings ratio will stabilize at a level corresponding to the stock price also will be determined. Stock market average price-earnings ratio = 1 / one-year bank deposit rate 2, causing stock Change Law based on the average profit margin, when the stock market investment in the field margins around the changes, funds are always low profit margin from the sector to the mobile sector profit margins, resulting in the transfer of funds. At this stage, the main areas of capital stock savings banks, bond market, futures market, real estate, etc. In addition, trade, industrial investment and collection industry has some of the stock market. Bank savings and bonds: When adjusting the interest rate savings and bonds, the stock market and the savings or the proceeds of the bond market will break the balance of funds will be transferred to chase the higher profits. Specific savings or bonds is when interest rates rise, the market value of investments will be reduced accordingly, investors will sell stocks or funds to invest in savings bonds, causing stock prices; the other hand, when the savings or bonds when the interest rate cut , people will draw from the savings funds or the bond market into the stock market, eventually leading to the rise in stock prices. Owned by residents in China's financial assets, accounting for more than 90% for savings deposits, followed by bonds, these two areas absorb the maximum amount of money. Therefore, interest rates or bond interest rate adjustment of stock prices is the greatest. Such as the People's Bank of China in 1996 has twice lowered interest rates on deposits residents, Shanghai and Shenzhen stock markets has led to a surge in stock prices. Futures: the futures with high risk and high-yield characteristics, so China's futures market has absorbed a lot of hot money, and the securities business departments of many of the futures business agent, funds transfer between the stock market and futures is extremely convenient. When the futures market when the hot market, it is often the funds will be attracted to the stock market, causing the stock market downturn and the stock price down; and when the futures market when the market was light, the stock of money is more filling, the stock is relatively strong. Such as the May 18, 1995 China Securities Regulatory Commission announced the suspension of all Treasury futures business, a lot of money quickly into the stock market, eventually leading to the stock market's surge, the Shanghai and Shenzhen stock markets rose on this day were 31% and 23.5% . In addition, when the stock market around the real estate, collections industry, trade and relatively prosperous areas such as industrial investment, due to the lure of high profit margins, these areas will attract capital from the stock market. If China's Wenzhou, specializes in business due to local residents and industrial investment, and in these industries can achieve higher profit margins, even in the hot market when compared to other cities, its securities trading business is also more quiet. Accordingly, the transfer of funds within the stock market can also lead to ups and downs of stock prices. When investors think a stock value of investment, the substantial influx of capital will be the stock, thus contributing to the rise in the price; and when the prospect of a stock is poor, investors will sell out the stocks from which funds resulting in the stock prices. If the interim report published in 1996, the performance of a stock loss of 0.70 yuan per share, also above. The day of the disclosure, the price dropped about 30%. 3, leading to the return of stock When a stock's share price rose too fast, the stock's spread income will be significantly more than its land area. In the temptation of high profits, the influx of external funds will have to further raise the stock price index rising drive. The inertia of the influx of funds, stock index tends to rise to a relatively high point. At this point, the funds into the stock market has been a relative surplus of high price-earnings ratio, the high price of capital is no longer attractive. Relative to the surrounding investment markets, the stock market significantly lower rate of return on investment. This is the average profit margin of the role of law in the stock market in turn will lead to other investment funds from the stock market liquidity, some of the more sensible will be the first to withdraw funds for investors, stock prices began to fall, causing even the sales response, eventually leading to stock market crash, the stock index and the surrounding area back to a suitable level of investment profit margin, which is the stock market soared after the collapse of the reason why there must be. Conversely, when the stock market crash and the stock price appears too low, the share price gains rate, lower price-earnings ratio, the investment value of stocks will be higher than other investment market. At this point, the average rate of profit under the effect of capital market to the stock market will shift from the periphery, causing the stock price rise. Tokyo, Japan, the late '80s stock market, and its rate of increase more than 30% for several years, the stock market spread benefits far higher than other industries, so the funds into the stock market like a snowball-like snowball, the Nikkei index from 1986 years, 13,000 more into the 1989 peak of 39,000 points, up to 100 times its earnings, resulting in a serious bubble economy. In subsequent years, the Tokyo stock market slump and a dedication to enter the difficult phase of adjustment. In 1995, the Nikkei had fallen to 14,000 points, the highest point is only 38%, almost from the end back to the starting point. By now, the Nikkei is still 2 Wandering around. Similarly, the Hong Kong stock market gains in 1993 had more than 100%, in early 1994 reached a peak of more than 12,000 points, but today's Hang Seng index is still hovering at 12,000 points. In China, the course of 5 years the stock market are basically the same, Shanghai and Shenzhen stock markets, respectively, from December 1990 and April 1991 began to count points, due to stock market wealth effect, our residents within the stock market in just two years devoted a lot of money, which led to soaring stock prices. To the end of 1992, the Shanghai Index and Shenzhen index rose from the 100 780 and 241, respectively, points, the average annual increase of 179%, respectively, and 68% in the first half of 1993 in Shanghai and Shenzhen stock market index reached a record the highest level of 1558 points and 368 points, the stock market will enter an adjustment phase, four years later, while the Shenzhen composite index to new high, but the Shanghai Composite Index still hovering below the 1558 points. Fourth, the net assets and share price The net assets of a listed stock company stock for each service included in the number of real assets, also known as book value or net equity, referring to the accounting method used to calculate the stock value of the assets included. It marked the listed company's economic strength, because any business is its business based on the number of net assets. If too much debt a company has net assets of less effective, which means that the vast majority of its operating results will be used to repay; such as the phenomenon of too much debt insolvency occurs, companies will be faced with the risk of bankruptcy . Equity investment and bank savings vary. Because the savings interest rate is fixed in advance, so the savings is proportional to the amount of income and savings, the deposit was more, the greater the profit. The stock return on investment only the amount of shares held directly proportional to input does not mean much on the big gains, even if the investors put the same amount of money, but because of varying the number of shares purchased, the investment income is likely to be different large. Because stock returns depends on the number of shares rather than stock prices, and the per share net asset included in the management of listed companies determine the strength, determine the operating performance of listed companies, each share of net assets is included on the decisive influence stock prices. Stock prices and the relationship between net assets per share and there is no fixed formula. Because in addition to net assets, business management, technology and equipment, market share and the external image of the enterprise, and so will the ultimate impact on operational effectiveness, and net assets of the impact on stock prices mainly from the average rate of profit law effect. Has been expressed in the previous section, the role of law because the average profit margin, return on net assets of enterprises will be around an average level of volatility. For listed companies, because after a more rigorous review, and more flexible operation mechanism and management level is higher than the average company, so its profitability is higher than ordinary business in general. If recent years, the average profit margin of the business about 10%, while the average listed company in 1993, 16% of net assets, 13.5% in 1994, macroeconomic tightening in 1995, industrial enterprises The lower operating income, but the listed company's net assets yield rate is still close to 11%. Research shows that countries listed companies although the average net assets generally higher than the local average investment profit margin, but they will not exceed 150% of this range. Therefore, only when the stock's average price does not exceed 1.5 times the net assets per share, the proceeds to invest in the stock market and bank savings or other investments rather average. The listed company when the stock price more than the average 1.5 times net asset value after the proceeds to buy shares than other investment. The above conclusion is that the overall average relative to the stock market, and on one or a small number of listed companies are not applicable. If a superior level of management of listed companies, market share, higher long-term stability and can, means of production and more advanced technology and equipment, of course, the stock price to see the high line, but not more than three times net assets. From 1994 statistics, the net return on equity of listed companies over 36% of the only two more than the average level of up to 3 times more still account for less than 1% of the total in 1995, the situation is basically the same. Content through the net assets of the lower stock prices can be determined. As long as a listed company business scope does not belong to the state policy to limit the development of the industry or a sunset industry, when its stock dropped to levels below its net assets to buy this stock on the worthwhile. Net assets when the stock price down to levels below the listed companies are faced with a takeover and merger issues. For investors, the funds with the same building with a listed company and that companies of similar size, might as well buy in the stock market is more convenient, it not only save lots of preparation work such as reporting, election pull and feasible of research, the acquisition of an existing listed company can also be used to save construction time, and there are ready-made employees of listed companies, the sales network can be used and so on. Listed company is acquired, the acquired company can reorganize its production, such as by adjusting the product structure management and other measures to rapidly improve their operational efficiency. It can argue that the stock's lowest price can be set at 80% of net assets per share or more. For rational investors, buying stocks can be controlled in the average price of the average net asset value of between 80% and 150%, that is: 0.8 ¡Á average net assets per share "The Equity of the average price of <1.5 ¡Á the average net assets per share In this context, the purchase of shares will have a high investment value. Beyond this range, the purchase will have a greater risk of stock market speculation in the atmosphere may be a strong number, is stuck with the higher likelihood. For stocks, it does well and a listed company, its stock price to see the high line, but the maximum price or should be limited to less than three times the net assets per share. 0.8 ¡Á net assets per share "Stock Price <3 ¡Á net assets per share of assets because of the assessment, there are still many problems in the listing, there was the content of the net assets of listed companies is significantly overvalued , such as some listed companies return on net assets year after year are below 10%, significantly below the industry level. Content of the net assets of such enterprises may contain more moisture, investors in the stock selection should be addressed. Some researchers put the stock price and profit growth of listed companies linked to that price and profit growth should be proportional. This contact is not appropriate especially for the Shanghai and Shenzhen stock markets, because the development of many listed companies are quantitative rather than qualitative, and that their profit growth was mainly because of the continuing increase in net assets in placement results, but the unit assets The yield has not been the slightest improvement is difficult to investors in the development of such companies from getting any benefits. This is just as bank savings, the interest rate is fixed, as long as depositors more deposits, the total interest will certainly be simultaneously increased. Even if the listed company's net assets yield rate on the rise every year, but it is there are limits. Overall, the stock market, the average return on net assets in other areas will not exceed the average investment rate of return (one-year deposit interest rate) of 50%. For the individual listed companies, the net return on assets is the ultimate level of three times the one-year deposit interest rate. Accordingly, if the purchase price of the stock more than three times the net assets per share, the same amount of money received benefits to compare bank deposit rates. Let the one-year bank deposit rate i, a listed company's net assets yield 3i, is 3 times the bank deposit interest rates, the stock price P, the net assets per share, J. When stock prices were 2.9 times net assets, 3 times into 3. 1 times, the judge in the same amount of money investing in stocks and bank deposits on the merits. No matter how the price of the stock, because it does not affect the net assets per share, the year of investment income generated will be constant, the proceeds are: R = return on net assets Net assets per share * = 3J * i (1) When the stock price per share of its net assets, 2.9 times the J, it will deposit the same amount of money 2.9J banks receive deposits 2.9J * i, the same than the deposit of funds to buy shares Bank of cost-effective. (2) When the stock price per share of its net assets of J 3 times, it will deposit the same amount of money 3J banks receive deposits 3J * i, the same funds to buy the stock received the same income and bank deposits. (3) When the stock price per share of its net assets, 3.1 times J, it will deposit the same amount of money 3.1J bank will receive interest on deposits 3.1J * i, the same funds to buy the stock proceeds lower than bank interest. The purchase of stocks, such as the listed company's net assets yield savings rate over the same period a times, to make the stock market return on investment of not less than the interest savings over the same period, the stock price can not exceed a net asset per share times the . Fifth, psychological factors and stock Mental activity of investors with its great influence on investment decisions, some of which have a psychological tendency of stock prices significantly adversely affected. 1. Herd mentality. Subordinate to the majority of modern social life and economic life of a criterion in the stock market, most investors believe that the majority's decision is reasonable, so in their own market and the stock market without understanding the situation of the situation, blind adherence operation and chase sell to others to follow suit, this is the herd mentality in the stock market. The main herd mentality of stock plays the role of amplification. Stage in a bull market, some investors see others buying the stock to be easy to think that the stock market bullish, lest behind, lost profit opportunities, the market outlook in the circumstances there is no hurry to grasp the purchase, resulting in stock price rise. And because the impact of earnings to buy shares, more and more investors influenced by others, and regardless of how the actual macroeconomic situation, the management of listed companies for the analysis is not to start buying stocks, and promote further increases in stock prices . With the wealth effect of stock market gradually expanded to more and more investors enter the market, and finally even some common on the stock market and financial market are indifferent to the citizens, and thus stock prices to a reasonable height, forming a Short-term bull market. Conversion to the bear market in a bull phase, some of the more rational investors will take the lead to the withdrawal of funds from the stock market, causing stock prices fell, other investors sell the stock to see other people, but also that some bearish stock market, fearing their loss, along with others sold to make a decision immediately. With the further deepening the stock declines, more and more investors to sell stocks to follow, and finally caused the stock market crash. 2. Expectations. Refers to expectations of future stock price investors, and various factors affecting the stock price changes in the psychological expectations. Downturn in the stock market, the stock has fallen to very low levels, most of the net assets per share fell to less than, but most investors are indifferent, cautious wait and see attitude, resulting in further decline in stock prices. Once the market turned over to shareholders in the role of expectations, but willing to race to a higher price to buy stocks, and indeed share prices soaring. In contrast, the stock price at the top region, investors are unwilling to sell, waiting for further price increases, and when the stock started falling, and that the stock price to fall much, they have joined the selling team. As the stock price investors are too optimistic about the future trend, it is possible to the castles in the air to raise the level of stock prices, such as raising the price to average net assets, or even 5 times 3 times the level of the stock was out of its intrinsic value. 3. Preferences psychology. Psychology is the preferred stock investors in the types of investments, tend to a certain class or certain kinds of stocks, in particular, tend to do their favorite stocks or frequently. When large organizations prefer a stock, because of their strong purchasing power, or sell in large quantity, it will cause the stock price from the general trend, showing a violent oscillation. Some stocks such as Shanghai, the annual after-tax profit of around 0.1 yuan also due to the preferences of large number of institutions, it will be pulled close to the stock price of 30 yuan, and when large shipments, the price dropped , resulting in the tragic loss of a number of retail investors to follow suit. 4. Knucklehead. In the stock market, there is a popular saying that stock trading is a fool and an idiot racing, not afraid of their sleepwalk cheap to buy or sell at high prices as long as people more stupid than he is willing to take a more higher price or sell more cheap that he will be able to be profitable, this mentality is a knucklehead. As knucklehead, many investors do not study the financial status of listed companies and the investment value of the stock as long as people buy to follow the buy, was sold along with his sales, resulting in a sharp price oscillations, the market-risk. If China's Shanghai and Shenzhen stock markets, as investors in China is not yet mature, and chase sell the wind, line, price is often a substantial oscillation, which is shareholders knucklehead at play, as long as I buy, someone will a higher I bought the stock price; as long as I sell, someone will sell at a lower price, so that they can make progress at a low price. Sixth, the stock market and stock price manipulation Stock described in sections above, and the operating performance of listed companies, the share price and average profit margins, stock levels and net assets of the relationship between stock price movements are rational motivation. Because of these motives, investors will be to mobilize funds to buy shares or sell shares in pursuit of higher investment income. But in fact, the stock of Change is the result of the movement of funds, with some motivation after the only person to buy or sell, causing changes in supply and demand, resulting in ups and downs of stock prices. In the stock market, some big institutions altogether on the use of their strong financial strength to lift or suppressed stock prices, this is the stock market manipulation. The main approach is through the buying or thrown in large quantities, causing the supply of a stock changes in funding, resulting in a sharp price ups and downs. In the stock market, as long as shareholders have a number of funds or the stock reaches a certain percentage of stock price movements can be so arbitrary, and thus control the stock price to profit. Such as the Shanghai Stock Exchange was in a listed company within a day doubled their share price pushed up, and more, a broker in Shenzhen Pro within minutes before the close of a stock's price will pull more than twice as high, so the price is the financial strength of a reflection period, retail investors on the stock market should be Duojia Ti against such manipulation, and should not blindly follow the trend, so as not to lose fooled. The behavior of large institutions able to manipulate the stock price to succeed, the reason is that small retail line of thinking, that after seeing the stock price up to think it will, and see the price fall that it will fall. The big institutions will be the stock price is bound to throw Scoop will be suppressed to a certain extent shares must buy. In the stock market, large institutions a common means of manipulating stock prices are the following: Monopoly. Large retail organizations to be trampled upon, often in huge funds to purchase a stock, to reduce the number in circulation, and then release rumors, luring retail investors to follow up, so that the formation of a bullish market sentiment, coax care market, price to be considerable height, and then quietly throw all the stocks and profit from. And because the number of shares held by large institutions are more, once sold, will result in the sharp decline in stock prices, causing retail investors stuck. Another way is to sell a large number of shares before large institutions to increase market share chips, while bad news released, causing retail investors panic, followed by large sell-off, the formation of decline, this time to absorb large dark again, higher than the promotion, for profit . Together. Two or more large organizations in private channeling, while trading the same stock, to create a false supply and demand of stock, in order to affect stock price volatility. Together usually in two ways: First, both come together in the large number of funds to purchase a stock or a stock in order to throw the same time price rises or falls; Another way is the way to the see-saw trading, that is, a few a big turn up or down lift prices weigh on prices. A first such large price of 10 yuan to buy large B then the price of 11 yuan to buy, and then again A big price to 12 yuan to buy, in turn pull up the price. On the knock. 1. 2.