What is the significance of stock financing?

Stock financing refers to two concepts in the securities trading market: circulation and difficulty in circulation. The tradable shares refer to the part of the company's shares that can be bought and sold freely, while the difficult tradable shares refer to the part that cannot be bought and sold freely, such as the shares held by management and major shareholders. In other words, stock financing means that the higher the proportion of tradable shares, the more active the stock trading market, thus promoting economic development. Therefore, stock financing is meaningful to both stock holders and the market.

Stock financing can make it easier for companies to raise funds, thus expanding their business scale. At the same time, by increasing the proportion of tradable shares, the increase of derivative market trading volume can also bring benefits to the company's share price. This will help to improve the company's shareholder value and market value, enhance the company's reputation, and attract more investors to pay attention to and hold shares in the company.

Improving stock financing can be achieved in many ways, such as properly adjusting the liquidity and market openness of stocks and promoting it through a more reasonable stock issuance system. Some novel equity financing methods, such as additional issuance, refinancing, IPO, etc., can also help companies improve the degree of stock financing and increase investment opportunities. At the same time, perfecting market regulations and reducing transaction tax rate, handling fees and other costs can also promote market prosperity and stock financing.