1、 What is the impact of rights issues on stock prices?

Rights issue is a financing activity in which a listed company issues a certain number of newly issued stocks to original shareholders at a specific price lower than the market price based on their shareholding ratio, in accordance with relevant laws and regulations and corresponding procedures, according to the needs of the company's development. The issuance of shares by listed companies will have a certain impact on stock prices. Whether it leads to an increase or decrease in stock prices requires comprehensive consideration of market conditions, individual stock situations, reasons for the issuance, and other factors.

For example, if a listed company raises funds through a rights issue that are not used to develop its main business, but invest in high-risk investment industries, the stock price will rise; If a rights issue is conducted at a high level, investors may believe that the stock price is already high and the risk is high, and give up the rights to issue shares, which may lead to a decline in the stock price. If a rights issue is conducted at a low level, it will attract investors to buy and stimulate the stock price to rise.

At the same time, in a favorable market situation, a rights issue can attract investors to buy and stimulate stock price increases. Conversely, in a poor market situation, a rights issue may lead to a decline in stock prices.

2、 How to operate a rights issue?

The rights issue operation is the same as buying and selling ordinary stocks, as long as you fill in the buy order according to the rights issue price and the number of shares to be issued.

1. Qualification confirmation. Investors first need to determine whether they are eligible to participate in the rights issue.

2. Pay the fees. If a number falls within the time frame for the payment of the rights issue, then the payment for the rights issue can be made on the trading day of the stock. At this time, it is necessary to remember the specialized trading code for the rights issue.

3. Settlement announcement. Relevant departments are required to settle and register the results of the rights issue. And some companies have announced the results of their rights issue.

4. Stocks are credited to the account. After completing the above steps, the allocated shares will be credited to the account, and the credited shares can also be publicly transferred and traded. Generally, this time will take place about a week after the stock resumes trading.

In summary, we know that the impact of the refinancing model of rights issue on stock prices needs to be analyzed on a case by case basis. However, due to the lack of a mechanism to protect the interests of shareholders, it has gradually decreased. Therefore, shareholders should also pay attention when conducting rights issue to avoid losses.