I want to know, what does it mean for listed companies to "distribute shares" to employees? Isn't it company stock?

1. What does "rights issue" mean to employees? Isn't it company stock?

The allotment of shares to employees is the behavior of listed companies to further issue new shares and raise funds from employees. Usually, the price of rights issue will be lower than the market price, and employees can subscribe for a certain number of newly issued shares through rights issue. Of course, employees are free to choose whether to participate in the rights issue, and if they do, the ownership of the rights issue belongs to the employees.

Second, two rights issue models:

1, paid rights issue

As the name implies, paid rights issue means that shareholders need to pay for new shares, and shareholders need to pay for shares according to their shareholding ratio.

2. Free rights issue

Shareholders who don't need to take out money to subscribe for free rights issue are all in the form of making money and distributing surplus. If the listed company chooses to pay interest, shareholders can receive cash directly according to their shareholding ratio. If a listed company chooses to issue shares, shareholders can receive shares free of charge according to their shareholding ratio.

Whether the rights issue is a good thing or a bad thing depends on the feedback from the market, and different situations have different effects. If the purchased shares are issued, investors need to comprehensively analyze the pros and cons of the problem.

Third, is the rights issue good or bad?

Rights issue is the behavior that listed companies issue new shares to the original shareholders to raise funds, but whether the rights issue is positive or negative depends on why listed companies raise funds.

If it is to expand the new fields of listed companies, or to expand the main business of large companies, this situation is conducive to the company's business development. At this time, it can be understood that the rights issue is good.

And if the company has risks, the rights issue at this time may lead to the expansion of risks, which is negative this time. What needs to be reminded here is that if the listed company you own has issued a rights issue announcement, and you are not going to sell it before the benchmark date, then you must remember to operate the rights issue on the day of the rights issue, otherwise it may cause losses, because the stock price will usually be lower than the current price of the stock, and the market value of the stock will decrease after the ex-rights.