Research On Preferred Stock Financing Of NEEQ Enterprise

There have been sprung up about 35 companies in financing by preferred stock because of the preferred stock pilot management measures in our country Since March2014,Preferred stock is a mixed capital tool,both share property and debit property.On the one hand,It is can better meet the demand of capital brought by the company's business development;On the other hand,It is financial liability as the investors have redemption option,it can help to enhance the company's financial leverage and improve the company's return on equity.In addition,if a company issues the preferred shares,it is not impact on voting rights,neither expand equity nor dilute existing shareholders' voting rights under normal circumstances,In addition to this,The preferred stock can solve the capital requirements of the expanding business for the company by lower financing cost,and reach the goal of corporate governance is maximizing the benefit of stockholder from the angle of material capital.In May 2019,Beryl electronic technology company offer the preferred stock by private placement for gaining the money of 26 million,they have a wonderful plan that would update the production line for technological transformation,it will improve the production efficiency and product quality,In particular,it will make the company's financial performance has also been a certain degree of ascension.As a successful case of offering preferred stocks in NEEQ(National Equities Exchange and Quotations)Enterprise,We would provide experience for reference to the emerald issuing preference shares can intends to use the same template for the future of enterprises.Meanwhile in order to promote the improvement of the preferred stock system and improve to provide practical basis.This paper expounds the research background and significance of implementation of the preferred stock financing,and reviews the domestic and international scholars to relevant theories and concepts of preferred stock financing,summarizes financing application status about the general financing way and the preferred stock,and then concretely introduces the NEEQ enterprise financing motivation and financing present situation,coupled with an emerald examples of successful implementation of the preferred stock financing,further analyze the NEEQ market effect of preferred stock financing and financial effect of preferred stock financing,and its implementation measures and effect evaluation.Finally the paper summarizes the emerald implementation of preferred stock financing experience and the most valuable matters about Beryl implement preferred stock financing through the implementation of the pathand the evaluation results analysis,According to the case analysis we gain the conclusion as below: Firstly,Preferred stock financing is enterprise development accelerator;Secondly,the appropriate financing objects can bring lower financing cost;Thirdly,in line with national industrial policies to guide the project financing is a NEEQ enterprise development opportunities.In this case,the NEEQ enterprise by preferred stock financing,has its special point is worth using for reference.Firstly,it preferred stock itself through the "heavy investment not to" attribute to solve the problems of the control system,and through the project conforms to national industrial development planning,the government helped finance capital,both can solve the problem of capital flows,and ensure that the lower the cost of financing.So the NEEQ enterprise to develop,must first fully understand and make use of the current policy,focusing on 2014 "preferred stock pilot method" and2015 "interim measures for the management of government investment funds" policy;Secondly,Focus the capital market and industry development trend,find accord with national industrial development strategy project and like-minded industrial chain strategic investors.Lastly,Both the investment and financing to certain value captured by the enterprise financing project benefits,tax as the tool of profit distribution,can be obtained according to the investment and financing on both sides of the income scale,appropriately through tax policy adjustment of profit distribution,in order to achieve investment profit allocation balance on both sides.The terms of preferred stock financing related to right draws a line in advance to improve the efficiency of management,implementation of value creation links,to reduce the financial risk.Preferred stock for the NEEQ enterprise and investors to set up a bridge of cooperation,to enhance the mobility of capital.NEEQ enterprise in combination with actual situation of the company management,focus on industrial policy direction,focus on capital is focused on the industry,screening the financing project,both is advantageous to the enterprise management to achieve the first want to financing effect,but also to the financial returns of investors prior agreement,to promote the wide application of preferred stock financing tools,promote preferred stock financing really serve the enterprise,and allow investors to take reasonable and stable return on investment,promote the financing project and national industrial policy be born,bring the development of the society welfare.