How to separate GEM and Main Board stocks (Difference between GEM and Main Board in the stock market and how to judge them)

The GEM and the Main Board are two important sectors in the stock market. GEM is the segment where companies with smaller size, high growth and higher risk are listed and traded, while the Main Board is the segment where larger, more mature and stable companies are listed and traded. So how can you tell the difference between GEM and Main Board stocks, and how can you judge their characteristics and investment value? Here are a few key ways to judge.

1. Stock code

First of all, the stock code is an important symbol for distinguishing GEM and main board stocks. The GEM stock code starts with 3, while the main board stock code starts with 6. For example, Tencent Holdings' stock code is 00700, which belongs to the Main Board, while BYD's stock code is 002594, which belongs to the GEM.

2. Company size

Secondly, company size is also an important indicator for judging GEM and Main Board. GEM-listed companies are smaller, usually start-ups or emerging industries, and their market capitalization and operating income are lower; while main board-listed companies are larger, and their market capitalization and operating income are higher. Therefore, GEM stocks are riskier, but they also have higher growth.

3. Price-earnings ratio

In addition, the price-earnings ratio is also an important indicator for judging the GEM and the main board. P/E ratio is the ratio of stock price to earnings per share, which is an important indicator of stock value. P/E ratios for GEM stocks are usually higher because they have strong growth, while P/E ratios for Main Board stocks are usually lower because they have relatively more stable growth.

In short, GEM and main board stocks have different characteristics and investment value. Investors should choose a stock sector suitable for their investment based on their risk tolerance and investment objectives.

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1. Definition of GEM and Main Board Stocks

GEM refers to the board where companies with smaller size, strong growth and higher risk are listed and traded, while the Main Board refers to the board where companies with larger size, more mature and stable are listed and traded.

2. Difference in stock codes

The GEM's stock code starts with 3, while the main board's stock code starts with 6. For example, Tencent Holdings' stock code is 00700, which belongs to the main board, while BYD's stock code is 002594, which belongs to the GEM.

3. Difference in company size

GEM-listed companies are smaller, usually start-ups or emerging industries, and their market capitalization and operating income are lower; while companies listed on the Main Board are larger, and their market capitalization and operating income are higher.

4. Difference in price-earnings ratio

Price-earnings ratio is the ratio of stock price to earnings per share, which is an important indicator of stock value. P/E ratios for GEM stocks are usually higher because they have strong growth, while P/E ratios for Main Board stocks are usually lower because they have relatively stable growth.

5. Investment Advice

Investors should choose a suitable stock sector for their investment based on their risk tolerance and investment objectives. GEM stocks have higher risk, but their growth is also stronger; while the risk of the main board stocks is relatively lower, but the growth is relatively more stable.