How To Treat Broken Hair And Broken Net

The "break" is that the share price falls below the issue price, while the "broken net" is the stock price fall. Broken net Asset value. For investors, the causal relationship depends on the fundamentals of the company and the general trend of the market. From a financial analysis point of view, net assets are the balance of the total assets in the balance sheet minus all debts.

If the P / E ratio is an aggressive indicator for investors, the market rate is defensive. index The net asset per share is the most important defensive line of stock price. Therefore, the "break" shows that the market is in a downturn and buying is insufficient. "Breaking the net" further shows that market confidence is in retreat and the motivation for short selling is relatively large.

In view of the current stock market in China, whether it is "breaking" or "breaking clean" is largely related to the irrational decline of the market, which has aggravated the panic and fall of investors. So for these stocks, we should see if there is a significant turning point in their fundamentals, and whether the market still supports its share price to go out of the trough rather than too blindly.