![[00757 and the Operation of Taiwan ETFs]](/_next/image?url=%2Fimages%2Fblog%2Ffb-posts%2Fen%2Ffb-post-0146-cover.png&w=3840&q=75 "[00757 and the Operation of Taiwan ETFs]")
[00757 and the Operation of Taiwan ETFs]
[00757 and the Operation of Taiwan ETFs] Easy Investment Talk CLEC Investment and Financial Education Academy Blog Post Date: August 09, 2021 In the world of the stock market, in most cases, the number of outstanding shares only changes when a company carries out financial actions such as ex-rights, capital increase, or capital reduction, and this will correspondingly affect the stock's net asset value per share, market price, earnings, and other financial data. However, ETFs follow a different logic because ETFs can participate in the primary market
[00757 and the Operation of Taiwan ETFs] Easy Investment Chat CLEC Investment and Financial Education Institute Blog Post Date: August 09, 2021
In the world of the stock market, in most cases, the number of outstanding shares will only change if a company carries out financial operations such as stock splits, capital increases, or capital reductions, which will in turn affect financial data such as the net asset value per share, market price, and earnings per share.
But ETFs operate under a different logic, because ETFs can engage in primary market subscriptions/redemptions. When a subscription occurs in the primary market, it means that investors exchange stocks or cash with the fund company for new ETF shares, increasing the number of ETF shares outstanding.
When redemptions occur in the primary market, it means that investors exchange ETFs for stocks or cash from the fund company, reducing the number of ETF shares in circulation. Therefore, whether it is subscription or redemption, there will be no dilution or increase in ETF equity.
00757 The trading volume is enough for you to complete your transaction! Buying 100 shares at the limit-up price in one go won't move the market, and it will also be executed at the current selling price.
There are many people in the market who don't understand, making a lot of noise, quacking. The ones talking about trading volume issues are the ones who don't understand, and don't understand how ETFs operate.
ETFs can continue to grow, market makers can trade options, and even if you buy more, hundreds of millions of New Taiwan dollars, the sole market maker will just issue more 00757 to sell to you. You only need to buy a call option in the options market, and then use your hundreds of millions of New Taiwan dollars to buy the underlying stock in the U.S.
Similarly, if you sell 100 million 00757, the Unification market maker will buy them all. Then buy a put option, and look for an opportunity to sell the ten stocks you hold in the U.S. market, and that's it.
00757 market makers can have unlimited trading volume, no need to worry. Those who are worried about trading volume are investors who don't even understand the basic operation of ETFs.
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