What Is Shadow Stock?

Shadow stocks are a form of long-term incentive compensation offered by many companies in Western countries.

Shadow stock

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Shadow stocks are a form of long-term incentive compensation offered by many companies in Western countries.

Chinese name

Shadow stock

Nature

stock

Industry

economic

Bonus

20%

Its characteristic is that when the operator is decided to give stock compensation, the compensation contract will stipulate that if the company's stock appreciates within a certain period of time, the operator will get

The so-called shadow stock refers to a listed company in the same industry or the same type as the new stock. In general, shadow stocks related to new stocks have increased significantly. Many investors / investors will buy such stocks two weeks before the IPO, and the returns are quite good. For example, Zhangzidao (002069), the first high-priced stock in the two cities, bought a good master (600467, plus 10 get 10 free themes) before listing and basically achieved a 30-40% return. Changduo intervened in its A shares (600036, disclosed in my long-term portfolio) before China Merchants Bank issued H shares in early August, and its book income was nearly 40%. Of course, more individuals are still optimistic about the development prospects of China's most efficient banks. Also this is "True Shadow" stock too! ^[1]

Of course, shadow stocks are only suitable for short-term speculation and cannot be greedy. Generally, the enthusiastic response of new stock offerings will stimulate the rise of related stocks, but before the listing, many large fund investors withdrew funds from the same type of stock to pursue new stocks, so it is best to choose to sell two days before listing. (Disclaimer: The stocks in the post are examples only, and do not constitute investment advice!) ^[1]