What are the risks of buying GEM?

Of course, GEM is more risky. However, risks are directly proportional to benefits. The first is the company risk, because the requirements of GEM for listed companies are not so strict, and all listed companies are small and medium-sized enterprises, mostly private enterprises, and the company's operating time is relatively short. Therefore, there is great uncertainty about the company's profit model and business sustainability. To put it simply, this company may look good now, but it may go bankrupt in two or three years. If you invest in such a company, you may lose everything; Second, the risk of delisting. Growth enterprise market has the regulation of "direct delisting", and there will be no warning transition stages such as ST and *ST like the main board. The main board company loses money continuously, and it can also realize the final reorganization by buying a shell and borrowing a door, which is completely impossible on the GEM; The third is transaction risk. In addition to the delisting conditions stipulated by the main board, there are three delisting situations in GEM: the financial and accounting reports of listed companies are issued with negative opinions by accounting firms or unable to express opinions; When the accounting statements of listed companies show negative net assets; The cumulative turnover of GEM stocks is less than 1 10,000 shares for 20 consecutive trading days. These three situations basically draw lessons from the delisting regulations of Nasdaq and other markets, and list the trading status of stocks as one of the delisting conditions for the first time. Therefore, it must be remembered that once the GEM opens, you should buy and sell the most active stocks, and never buy those "cold" stocks with less turnover. Answer over. I hope it helps you.

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