 |
[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities has decided to limit attempted trading on the first day of listing only for newly listed stocks.
Unattended trading is a trading method in which investors pay a certain percentage of margin and borrow money from securities firms to buy stock stocks. Investors can make purchase orders in excess of their holdings. However, as shown in the recent collapse of SG Securities, the company will face a counter-sale by a securities firm if it does not pay back the amount after two trading days or if the margin does not remain at a certain level due to the falling stock price.
The move is aimed at reducing excessive leverage investment as the price limit for new listed stocks has quadrupled.
According to NH Investment & Securities on the 27th, it will not provide outstanding trading services on the day of listing for newly listed stocks on the securities and KOSDAQ markets. This is due to the recent implementation of the Korea Exchange's regulations on securities and KOSDAQ markets, which has increased the price limit of new listed items to 60∼400% from the previous day.
Previously, the same price limit (-30∼30%) as other stocks has been applied since its opening based on the initial price determined by receiving the bid price within 90∼200% of the public offering price.
However, in the new method, the range is larger than the existing price limit (63∼260%) because the standard price of new listed stocks is determined without a separate procedure and 60∼400% of the price limit on the first day of listing is applied.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
