Primitive, the stock issued by a company in the early stage of its venture, has greatly increased in value due to the company's growth and appreciation. In addition, there is still room for premium when listing, and buying original shares is very profitable. For example, Company A 1 yuan started with gross assets of 0.8 (less than the pre-listing premium) and gross net profit of 0.3; After 1 year, the assets are 1. 1 yuan, so the analogy profit should be 0.42, and so on. In another five years, the assets will be 3. 16 yuan, and the net profit for that year will be 1. 18 yuan. If it can be listed in that year, it will be calculated at a price-earnings ratio of 20 times.
However, many companies have closed down before listing, but the benefits outweigh the risks!
Personal views are for reference only.