Research Of The Price Effect Of The Restricted Stock Circulating Of China's Finance Industry Stocks

The restricted stock is the stock which cannot be exchanged temporarily and will be circulating after a period of time. There are many types of the restricted stock in China's stock market. According to the type of stockholders, it can be divided four types of the restricted stock, such as type of equity division status reform, type of IPO, type of SEO, and so on. Because China's stock market has a short development history and its investors'mentality and investment skill are generally immature, the investors always take overreaction to the restricted stock circulating. In other words, although the restricted stock circulating can not produce much price effect according to the traditional finance theory, it still can be found that the huge stock price effect happened after the restricted stock circulating. For that, it should be caused by deep thinking to the Price Effect of the Restricted Stock Circulating.Thus, the purpose of this paper is that we want to use the event study method and the multiple regression model to study the Price Effect of the Restricted Stock Circulating of China's Finance Industry Stocks from the perspective of a new vision for analysis by the relevance of behavioral finance theory, so that we can sum up the volatility and the influence factors of the the Price Effect of the Restricted Stock Circulating and propose the solutions and suggestions of the Price Effect of the Restricted Stock Circulating from the perspective of the government policy and investment strategy.The whole paper is divided into seven parts. The first part is the introduction. The second part is the situation of the relevant research at home and abroad. The third part is the character and development status of the Restricted Stock Circulating of China's Finance Industry Stocks. In the fourth and fifth part, we qualitatively and quantitatively analyze the Price Effect of the Restricted Stock Circulating of China's Finance Industry Stocks by behavioral finance theory, which is one of the key points of this article, mainly through analysis of the volatility and the influence factors of the Price Effect of the Restricted Stock Circulating. Some feasible strategies for risk prevention from the perspective of both market itself and investors are put forward in the sixth part, which is also one of the key points of this paper. The seventh part is the summary.