GEM-What is GEM?
GEM also known as the second board market, that is the second stock market, refers to the board other than the listing for temporarily unable to provide financing to SMEs and start-up companies means and room for growth in the securities trading market, is the motherboard market, the effective supply , in the capital market occupies an important position. GEM-listed companies are mainly engaged in high-tech businesses with high growth potential, but often shorter set up a smaller scale, the performance is not outstanding.
GEM - Category NASDAQ Stock Exchange In the long river of history in the securities, the GEM is to correspond to the beginning of the company's board with large mature markets to small and medium sized companies as the main image of the object market to arise. The late 19th century, some do not meet the listing standards of large-scale small companies only choose the OTC market and the local exchange as a listed place. By the 20th century, the gradual demise of a number of local exchanges and OTC markets, there are many irregularities in the office. Since the 60s, the United States as represented by regions in North America and Europe, etc. In order to solve the financing problem of SMEs and began vigorously to create their own Growth Enterprise Market.
Development to date, GEM has developed into helping emerging small and medium enterprises, especially high-growth technology companies finance market. According to the relationship between the division of the Main Board, the global second board market can be divided into two modes. One is "discrete." Completely independent of outside board, with its own distinct role. The world's most successful second board market --- the U.S. Nasdaq Stock Market (Nasdaq) shall be guilty of such. Nasdaq Stock Market was born in 1971, the New York Stock Exchange Main Board Listing Rules to streamline than the much more high-tech companies gradually become the nation's largest securities market. As of the end of 1999, a total of 4829 listed companies, market capitalization of up to 5.2 trillion U.S. dollars, of which the proportion of high-tech companies for about 40%, emergence of a group such as Cisco, Microsoft, Intel, like the famous high-tech giants . "Thirty years east of the river, thirty years Hexi", 30 years after the Nasdaq market, full-fledged, total number of companies listed on the New York Stock Exchange, more than 60%, trading volume in 1994, more than the New York Stock Exchange.
The other is "sub-type." Attached to the motherboard market, is designed to train board listed company. Second Board listed companies is ripe, can be upgraded to the Main Board. In other words, act as the Main Board of the "second echelon." Singapore is such a case Sesdaq
