T 1 can better protect the interests of shareholders

Mondo Finance Updated on 2024-01-28

It is an important part of the national economy and plays a non-negligible role in the development of social economy. In **, shareholders play an important role, and their interests need to be protected. The implementation of the T+1 system can better protect the interests of shareholders.

First of all, the T+1 system can effectively avoid the losses caused by the sharp fluctuations in stock prices. In the traditional trading system, shareholders need to wait for a period of time to really get the corresponding funds or ** after selling or selling. During this time period, ** may fluctuate significantly, resulting in increased transaction costs or reduced earnings for shareholders. The implementation of the T+1 system can ensure that shareholders can get the corresponding funds on the second trading day after the transaction, avoiding the risk of fluctuations during the transaction. By shortening the settlement time of trades, the transaction costs for shareholders are also greatly reduced, making it easier for them to make profits.

Secondly, the T+1 system can improve the liquidity of the market and reduce the risk of trading. Liquidity is one of the most important indicators, which directly affects the stability and healthy development of the market. In the traditional trading system, due to the long settlement time, the turnover rate of funds and ** has slowed down, and the lack of market liquidity is more common. The implementation of the T+1 system can shorten the flow time of funds and improve the liquidity of the market. In this way, investors can get funds more quickly when buying and selling, reducing the risk of trading. At the same time, the improvement of liquidity will also attract more investors to enter the market, increase the activity of the market, and further protect the interests of shareholders.

Finally, the T+1 system can improve the fairness of the market and reduce bad trading behavior. In **, bad trading behaviors such as insider trading, market manipulation, etc. often exist, which not only affect the fairness of the market, but also damage the interests of shareholders. In the traditional trading system, the settlement time of the transaction is long, which provides an opportunity for bad trading behavior. The implementation of the T+1 system can quickly complete the settlement of transactions, expose bad trading behaviors in a timely manner, and reduce the occurrence of improper behaviors. By improving the fairness of the market, the interests of shareholders are better protected.

To sum up, the T+1 system can better protect the interests of shareholders. By shortening the settlement time of transactions, the T+1 system avoids the losses caused by stock price fluctuations and reduces transaction costsAt the same time, it improves the liquidity of the market, reduces the risk of trading, and attracts more investors;It also improves the fairness of the market and reduces bad trading practices. It is believed that with the widespread implementation of the T+1 system, the interests of shareholders will be better protected, and they will be able to develop more stably and healthily.

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