Is ST stock "specially processed" by the stock exchange? What is the risk of st stock?

ST shares are "specially treated" shares of the stock exchange. They are called ST shares after adding "ST" to the abbreviation for special treatment of stock transactions of listed companies with abnormal financial or other conditions. This sign serves as a market warning to remind investors that there is investment risk in this stock.

Since they have specifically warned about investment risks, is it impossible to buy? First of all, we need to understand the risk of st stock? In general, the net profits of ST stocks in the past two years are negative, which means that they have lost money for two consecutive years. In addition, some net assets per share are lower than the current price per share, which means that the assets included in a share are not worth the price traded in the stock market. Therefore, once the stock is subject to the ST, it often drops, or even drops continuously. It is also difficult to judge where its reasonable price is, so it is not easy to find a suitable purchase point. It is likely that if you buy it, you will be trapped and lose hope. If the situation is serious, there may be a risk of delisting, leading to a loss of money.

There are risks and opportunities. If the company can actively deal with them, try to improve its performance, and hopefully take off the hat in the next two years, it is likely to be greatly hyped up by the main capital. At this time, it has the opportunity to gain relatively large profits. However, because there is no way to know exactly whether the company's fundamentals can be improved, most of the time it is just hype. The main capital may take self-help actions to drive up the share price and then flee. It is recommended not to chase up the price and blindly copy the bottom. It is better not to touch unless you can better grasp the buying and selling points.

key word: ST stock stock exchange risk