Is equity investment reliable and what are the risks?

Equity investment is a game of risk, and there is no return if you don't take risks. The five major risks that must be paid attention to in equity investment include investment decision-making risk, enterprise operation risk, capital market risk, legal risk and execution risk. 1. The risk of investment decision-making is mainly reflected in the inaccurate positioning of the project and the omission of the decision-making process.

Before making an investment decision, it is necessary to go through a series of procedures, such as investment letter of intent, due diligence, financial and legal audits, etc., and the investment procedures are not perfect, the due diligence is not comprehensive, and the omission of the procedures may cause unpredictable risks. II. Enterprise Business RiskEnterprise business risk mainly refers to the business operation risk of the invested enterprise. The risk may be due to a change in the market environment of the industry in which the project is located, such as an economic recession.

It may be that the business decision is wrong, such as blind expansion and too rapid diversification. It may also be that the management of the enterprise is not capable, or the management team is unstable. 3. Capital market risk The capital market risk mainly refers to the risk brought about by the policy.

This risk is a systemic risk that cannot be avoided by any investment project. 4. Legal risksLegal risks are mainly reflected in legal issues such as contracts and intellectual property rights. Improper contracting of equity investment agreements and protection of trade secrets may also bring about contractual legal risks.

Equity investment is similar to when you are a shareholder of a business, since you are a shareholder of the company, you have to bear the risk of loss.

Legal Analysis: Five major risks that must be paid attention to in equity investment: 1. Investment decision-making risk.

2. Business risks. 3. Capital market risk. Capital market risk mainly refers to the risk brought about by the policy, and the risk arises immediately when the policy changes.

4. Legal risks. Legal risks are mainly reflected in legal issues related to contracts and intellectual property rights. 5. Execution Risk.

Factors influencing execution risk.

Legal basis: Article 71 of the Company Law of the People's Republic of China The shareholders of a limited liability company may transfer all or part of their equity to each other. The transfer of equity by a shareholder to a person other than the shareholder shall be subject to the consent of more than half of the other shareholders.

Shareholders shall notify other shareholders in writing to solicit consent for their equity transfer, and if other shareholders do not reply within 30 days from the date of receipt of the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; If you do not purchase it, you will be deemed to have agreed to the transfer. For the equity transferred with the consent of the shareholders, under the same conditions, other shareholders have the right of first refusal.

If two or more shareholders claim to exercise the right of first refusal, they shall negotiate to determine their respective purchase ratios; If the negotiation fails, the right of first refusal shall be exercised in accordance with the proportion of their respective capital contributions at the time of transfer.

There are certain risks associated with investing in equity instruments, which may include investment decision-making risks, business operation risks, capital market risks, legal risks and execution risks. Investing in equity may result in expected equity returns, or it may result in losses.

[Legal basis].

Article 126 of the Company Law of the People's Republic of China shall implement the principle of fairness and impartiality in the issuance of shares, and each share of the same type shall have the same rights. For the same type of ** issued at the same time, the issuance conditions for each Sun Xian share should be the same as **; The same price shall be paid for each share subscribed by any unit or individual. Article 127 **issuance** may be at par amount, or it may exceed the par amount, but it shall not be lower than the par amount.

Article 178:When a limited liability company increases its registered capital, the capital contribution subscribed by the shareholders for the new capital shall be implemented in accordance with the relevant provisions of this Law on the payment of capital contributions for the establishment of a limited liability company. When the shares are issued to increase the registered capital, the shareholders subscribe for the new shares, and the relevant provisions of the payment of shares are implemented in accordance with the relevant provisions of this law.