What is the principle of enterprise listing? How to explain the original shares and the growth enterprise market?

Listing of an enterprise means that shareholders or founders sell some shares, and set a reasonable price according to the previous operating profit level of the enterprise, and then the enterprise sells some shares to obtain funds. Many domestic companies are listed by selling shares to raise funds, and now many cases have become money.

Primitive shares are shares issued before the company goes public. In China stock market, "primitive stocks" have always been synonymous with profit and wealth. In the early days of China stock market, investors can make a small profit by buying hundreds of shares of enterprises publicly issued to the public at the issue price in the primary stock market, and make a big profit by buying thousands of shares. If they have strong financial strength, they will buy tens of thousands and hundreds of thousands of shares, and will make millions of profits when they go public in the future. This is the first bucket of gold in China stock market.

GEM is mainly a small-scale listed company. The original intention is to let those high-tech, high-growth small and medium-sized enterprises go public for financing, help them grow rapidly, and at the same time, shareholders can enjoy high growth and gain income. However, few domestic companies listed on GEM really meet these requirements, or they are muddling along, with high P/E ratio, low growth, and even losing money after listing for one or two years.