In the market, concentration is an important indicator, which reflects the concentration of institutions or large investors holding a certain stock. So, how is concentration calculated?
*Concentration is usually measured by calculating the number or percentage of shares held by an institution or large shareholder. The specific calculation method is as follows:
Shareholding method: Count the number of shares held by a certain institution or large investor in a certain **, and compare it with the total share capital of the **, so as to obtain the concentration. For example, if an institution holds 1 million shares and the total share capital of the institution is 100 million shares, the concentration of the institution's holdings is 1 million 100 million = 1%.
Shareholding Ratio Method: Count the shareholding ratio of a certain institution or large account in a certain **, which is the concentration. For example, if an institution holds 1 million shares, and the total share capital of the institution is 100 million shares, the shareholding ratio of the institution is 1 million 100 million = 10%, that is, the shareholding concentration is 10%.
It should be noted that the concentration is a relative value, and the concentration may vary greatly between different concentrations. At the same time, the higher the concentration, the better, and too high a concentration may mean that the risk of the ** is greater. Therefore, investors need to consider a variety of factors when analyzing the concentration of **.