How Do I Determine the Cost Basis of Stocks?

A stock is a kind of marketable securities issued by a joint stock company to shareholders to prove their shares. It can be used as a trading object and collateral. It is one of the main long-term credit instruments in the capital market. The stock is used as a shareholder's certificate for the shareholder to obtain shares in the company, and if he holds it, he will own a share of the company's capital and become one of the owners of the company. Dividends also have the right to attend shareholders' meetings, elect boards of directors, and participate in business management decisions. As a result, shareholders' investment intentions are realized by exercising shareholder participation rights. At the same time, shareholders must bear corresponding responsibilities and risks.

Stock basis

Stocks are a kind of non-repayable

(1) After the stock is listed, the listed company becomes the investment target of the investing public, so it is easy to absorb the saving funds of the investing public and expand the source of financing.

(2) After the stock is listed, the shares of the listed company are scattered among the investors of different sizes. This type of share decentralization can effectively avoid the danger of the company being dominated by the minority shareholders alone, giving the company a larger Degree of freedom of operation.

(3) The announcement of the stock exchange on the stock market of the listed company and the periodic accounting books has played an advertising effect, effectively expanding the popularity of the listed company and improving the credibility of the listed company

The par value of a stock is the nominal amount marked on the face of the shares issued by the joint stock company. It is in yuan / share and its function is to indicate the amount of capital contained in each stock. The par value of the stocks circulating in the Shanghai and Shenzhen stock exchanges in China is one yuan, that is, one yuan per share.

One of the functions of the par value of stocks is to indicate the proportion of stock subscribers in the investment of a joint stock company, as a basis for determining shareholders' rights. If the total of a listed company

When a stock is listed and issued, from the perspective of the company's own interests and ensuring the success of the stock listing, the listed company does not issue the face value of the listed stock, but formulates a more reasonable price to issue.
Stock market price The market price of a stock refers to the transaction price reached by both parties in the process of the stock transaction. Generally, the stock price refers to the market price. The market price of a stock directly reflects the market conditions of the stock market, and is the basis for investors to buy stocks. Due to many factors, the market price of stocks is constantly changing. The stock price is the concentrated expression of the stock market value, so this price is also called the stock market.

There are three main analysis methods for stock investment:

The liquidation price of a stock refers to the actual value represented by each share of stock once the stock company is bankrupted or closed. Theoretically, the liquidation price per share of the stock should be consistent with the book value of the stock. However, when the enterprise is liquidated, its property value is calculated at the actual sales price. The price is generally lower than the actual value. So the liquidation price of the stock will not be consistent with the net value of the stock. The liquidation price of the stock is only used as the basis for determining the stock price when the stock company is liquidated due to bankruptcy or other reasons.

Due to the rapid development of China's securities market, Shenzhen and Shanghai

our country's

As Shanghai stocks are centrally managed by the Shanghai Stock Exchange, investors' Shanghai stocks can be traded in any

Stock Security Enhancement: If Investors' Shanghai

According to the "Company Law", a company's profits after paying income tax should

P / E ratio is a reflection

Listed company

Rights issue refers to the act of a listed company, after obtaining the necessary approvals, to propose to its existing shareholders a rights issue so that existing shareholders can subscribe for rights shares in proportion to the shares they hold. Rights issue is one of the ways for listed companies to issue new shares.

The operating procedure of the rights issue is as follows: first, the listed company determines the base date for equity registration, the shareholders hold the shares on the date of equity registration, obtain rights to issue rights, or obtain rights issues, and then the rights issues are listed for trading (currently, A shares are not traded for rights) After the closing of the transaction, the shareholders who have the right to allotment will purchase the allotment shares on the broker's office through the exchange in the specified payment period. The Exchange stipulates that after the rights issue payment period has expired, the rights issue cannot be reissued, and the shareholders are deemed to have waived the rights of rights issue automatically. At present, the A-share rights issue consists of four parts: one is a placement to the public shareholders, which is generally called "** rights issue" or "** A1 rights issue". The listing code of the Shanghai Stock Exchange is "700 ***" and the Shenzhen Stock Exchange is " 8 *** ", this part will be circulated immediately after the subscription, and the remaining three rights issues will not be circulated before the relevant state policies are promulgated. They are: the placement of the state-owned shares and social legal person shares to the public shareholders, which are generally called "** transfer" or "** A2 allocation", "** transfer allocation", and the Shanghai stock code is "710 "***", Shenzhen market is "3 ***", this part is because the state shares and legal person shares are not yet tradable, the shareholders of state shares and legal person shares of listed companies have waived their rights to ration rights or Formed by the transfer of rights to shareholders of public shares; another part is the subscription of rights shares by shareholders who previously transferred rights, which is commonly referred to as "** transfer" and the code is "701 ***", which is based on the "same share The principle of equal rights is that the shareholders who participated in the last allotment share participate in this allotment; there is also the transfer of the state shares and legal person share allotment of the previous allotment share holders, which is generally referred to as ** transfer, the code is "711 ***" also belongs to the non-circulating part. After the allotment, the tradable part of the stock exchange arranges for listing and circulation after receiving the shares of the company and the capital verification report from the listed company.