What does it mean to win a new share?

The lottery of new shares refers to the purchase of newly listed shares by lottery. Before the opening of the market, the securities company or the issuing company generally organizes the lottery and sends it to the subscribers. If your number is drawn, you have the right to buy new shares at a predetermined price on the same day. The purpose of the lottery of new shares is to ensure fairness and increase the opportunities for small and medium-sized investors to buy shares. Since the issuance of new shares is usually limited, the lottery of new shares has also become a way to snap up new shares.

The core principle of winning new shares is fairness. Each participant has an equal opportunity to participate in the lucky draw independently. This means that every number has the same winning probability. The advantage of winning new shares is that you can buy new shares at a relatively low price, and you don't need to worry about raising prices outside the centralized bidding. Before the lottery, securities companies and issuing companies usually announce the issuance of new shares and subscription demand, so that investors can make rational decisions.

Although the chances of winning new shares are relatively small, many investors still love this way. The advantage of winning lots for new shares is that the price of subscription for new shares is lower than the market price, which provides a low-cost and low-risk channel for small and medium-sized investors to subscribe for shares. In addition, the lottery of new shares can also help investors lock in the income, because new shares often increase greatly after listing, which can bring certain income to investors. Generally speaking, the lottery of new shares is an investment method worth considering, but we need to pay attention to the opportunity, because the chances of winning new shares are usually limited.