Two-tier price-what is the Two-tier price?
Two-tier price refers to the same stock at different times and different places have different prices, take advantage of this apparent difference between the arbitrage is a blind spot in the two-track price arbitrage, the most important way to track the price arbitrage blind spots are:
1. two-track policy has resulted in the price. For example, a market shares, strategic investors, shareholders, internal employee shares in preparation for the financing of high-priced stocks, which have the follow-up appreciation potential. Arbitrage approach is to try every means to access to these shares, policies require what conditions, do you think of ways to meet these conditions on the line, even if the cost is worth paying the middle. These tools are the first ten years, China's stock market winners in the most commonly used means of, with strong Chinese characteristics.
2. double-track reorganization caused by the price. For example, the merger to absorb new internal stock exchange listed company's assets, listed companies buy back equity, etc., there is the potential for mutation of stock value. Arbitrage approach is mainly compare the difference between revenues and costs, to absorb the company access to quality, cheap shell, with a total circulation of equity share capital and close to the listed companies is very important. Most of these tools is the world's stock market winners in the means used, such as the United States, Warren Buffett, Hong Kong's Richard Li and so on.
3. the two-tier price market bubbling. For example, information on the use of people's mood changes, changes in the sale of power means such as short-term changes in stock prices, and thus the success of arbitrage. Arbitrage approach would essentially need to have a certain amount of financial resources and small-cap stocks of resources, familiar with the sale of investor psychology. Using this profit model, prop up share prices to note the cost and cycle must be short, China's most successful institutional investors are using this way, the vast majority of successful institutional investors in the United States also adopted this approach. The failure of China's most institutional investors, mainly due to the failure of the cost of long cycles and pulled too large.
What is the Market Trap ?===>
