Why are non-cashing, IPO and refinancing all sucking the blood of the stock market? What are the consequences of being sucked by blood?

The so-called non-tradable shares are locked by large and small shareholders according to the policy after the stock is newly listed. Because of the market capacity, the share capital held by large and small shareholders after the company goes public is very huge. If it goes public, it will be very destructive to the stock market. Therefore, there are policies that restrict the sale of more than a certain number of shares held by large and small shareholders to the secondary market, that is, the market where shareholders can buy and sell freely. They need to be locked for a certain number of years to sell. Usually two years.

And IPO and refinancing, IPO is the abbreviation of initial public offering, which means that companies that have not been listed before are listed for the first time, and the stock market is a market for accumulating funds. Raising funds will certainly have a blood-sucking effect on the stock market, so that all the money will flow into the pockets of these fund-raising companies. Refinancing means that listed companies are short of money and go to the stock market for financing again. These two companies are listed companies, and they get real money with credit in the stock market, so they have dealt a great blow to the stock market.

If new shares are issued indiscriminately, uncontrolled IPO and financing are tantamount to those companies asking for money from the stock market without restriction. Just like mosquitoes sucking blood, the stock market will certainly plummet, because there are too many stocks, and the price will plummet like cabbage in the vegetable market. It is the small and medium-sized investors who are ultimately damaged.

There is no direct logical relationship between IPO and refinancing. For example, is there a logical relationship between excessive issuance of paper money and inflation? The principle is the same. The stock price falls because there are more shares issued, and the stock will rise not because of its high value, but because it has funds to buy. Capital is the essence of stock power, not anything else. Without the inflow of funds, no matter how good the theme is, no matter how excellent the company is, it will not rise.