1、 What does it mean for executives to increase their holdings of stocks?
Increasing holdings refers to the controlling shareholder or executive of a company using their own funds to purchase their own company's stocks through the secondary market, thereby increasing their holdings.
2、 Is it a positive or negative for executives to increase their holdings?
From the perspective of indication, the controlling shareholders (market makers) of the company have all expressed their intention to absorb chips, which must be a positive development, right? In fact, there are many tricks in the announcement of increasing holdings. Firstly, you need to pay attention to several important points:
1. When the company released the announcement, did it specify the specific amount of increase in holdings: for example, I have confirmed an increase of 1 billion. Some companies are particularly unscrupulous, only stating that they will increase their holdings by no more than 1 billion, which adds a lot of water. Even 10 million is not more than 1 billion, and 100 million is not more than 1 billion. Previously, a certain department issued an announcement stating that they would increase their holdings of the company's shares, but not exceed 10 billion yuan, and only increased their holdings by 100 million yuan in the end. This is clearly loud thunder with little rain, pulling retail investors over to carry sedan chairs.
2. When the company released its announcement, did it specify the specific time for the increase in holdings? For example, I have decided to increase my holdings of 1 billion shares in the company in the next month. Some companies do not explicitly state how long they will increase their holdings in the company, and there is also a lot of ambiguity involved. Previously, a certain company announced that it would increase its stake by 500 million yuan, but in the last six months, it only increased its stake by 20 million yuan.
3. When the company released its announcement, did it specify the specific upper limit of the stock price for the increase in holdings, such as clearly stating that the increase in holdings should not exceed 50 yuan. Some companies announce their plans to increase their holdings, with the current stock price at 30 yuan. They declare that the increase in holdings will not exceed 40 yuan, which is a significant factor. If the stock price rises, they will not be able to increase their holdings. They then announce that they did not increase their holdings due to the high stock price.
The content about the explanation of executives increasing their holdings of stocks has been introduced to everyone. Although executives increasing their holdings of stocks may seem like a good thing, this kind of good news also needs to be judged based on the background of the event. For example, if the company has big negative news, these small positive news often do not affect the trend of the stock price.