TITLE:
Analysis of Stock Pricing Factors
AUTHORS:
Jinyang Sun, Yicheng Hong
KEYWORDS:
Ipo Pricing, Listing, Factor Analysis
JOURNAL NAME:
Open Access Library Journal,
Vol.8 No.11,
November
15,
2021
ABSTRACT: With the development of commodity economy and its productive forces, a product-stock is obtained. European securities market has formed a complete system, but Chinese stocks themselves have the characteristics of “controlling more with less” in trading. Because legal person shares and state-owned shares promise not to circulate when they are listed, each share is only tradable shares traded according to the stock price in the market, but the index is calculated according to the weighted total share capital. Therefore, the pricing of new shares listed in China still has some problems such as high underpricing and unreasonable listing price, which itself has non-market problems. Theoretically, company potential, development prospect, stock market status, number of issues, etc. may all become the influencing factors of IPO pricing. In order to prevent speculation and stabilize the stock market, it is necessary to analyze the pricing factors of new shares. Nowadays, stock pricing determines the equilibrium of stock market, and there are many factors that affect the pricing of new shares, which are divided into ontological factors and environmental factors in this study. Ontological factor It is the influencing factor of the issuance price when the stock issuer operates and manages internally. There are many kinds of environmental factors, such as the overall economic situation, policies, industries and so on. As an emerging market, the regulatory concepts and rules, investor maturity and intermediary service capabilities of China’s capital market are constantly improving. The pricing mechanism of new shares is still being adjusted and improved. In view of this, this paper will analyze various factors that affect the pricing of new shares and use principal component analysis to reveal the relevant variables that affect the pricing level, sort out their importance, and put forward corresponding suggestions.