Is The Green Shoe Mechanism Applicable To New Issue Or Issuance?

Visitor 96397 asks: "green shoe" mechanism how to understand, apply to new issue or additional issue?

Jianghai securities Beijing East sanhuan South Road business department answer: "green shoes" mechanism is the common name of the over quota option system.

The excess allotment option is an option for the issuer to award the principal underwriter. The authorized underwriter will sell the shares over 15% of the underwriting amount at the same issue price, that is, the principal underwriter shall sell the shares to investors at a share of not more than 15% of the underwriting amount.

This mechanism applies not only to the issue of new shares, but also to the issuance of new shares.

Tourist 58484 asks: why does a country's surplus often lead to the appreciation of its currency?

A business surplus of Jinling East Road, Xingyi securities, Shanghai: the trade surplus means that the country's export volume exceeds its import volume.

The increase in net exports, that is, the increase in demand for domestic products by foreign countries, has led to greater demand for local currencies than foreign currencies.

In the foreign exchange market, because the supply of local currency is insufficient, the local currency should appreciate.

And the appreciation of the local currency will reduce the net exports of the country.

Tourist 93635 questions: if a stock's restricted stock is lifted, then is the stock stable? Is the probability of increasing?

The investment department of Jinling East Road, Xingyi Securities Co., Ltd., Shanghai: the rise and fall of stocks are determined by many factors, and the lifting of the ban is only one of them.

In the current market, apart from the pressure of large and small non lifting of the ban, the factors that restrict the stabilization and rebound of stocks include the relative pessimistic expectations of investors, the pressure of the external financial environment, and the investors' concern for macroeconomic fundamentals.

However, judging from the recent series of policy measures, the state has obviously increased the "rescue the market" and the stability of economic development.

In addition, for the choice of stocks, we should also see the prosperity of the industry and the potential and valuation level of the listed companies themselves.

Lao Li asked: why does the fund change cost differ?

Xiao Zhang answered: the cost of fund conversion actually includes redemption fee and subscription fee.

The redemption fee is relatively easy to understand, and the difficulty lies in the purchase and replacement fee.

To put it simply, the subscription fee is pferred from the low purchase fund to the high rate purchase fund. The difference between the purchase price and the purchase price is charged. The fund with high subscription rate is pferred to the fund with low purchase price.

The conversion rates of different fund companies are also slightly different.

In general, the conversion between common stock funds and stock funds is usually only 0.5%, which is far below the normal purchase rate of 1.5%.

If there is a conversion between different funds, the cost depends on the specific circumstances.

For example, the conversion fee from the IMF to the stock fund is usually 1.5%, which is the same as the purchase rate; and the conversion fee from the stock fund to the monetary fund is usually 0.5%, which is equivalent to the redemption rate.

In addition, many fund companies also stipulate that the conversion rate can be further reduced or even converted freely according to the investor holding period over a certain number of years.