Abstract: Based on stock evaluation model of PBV, large shareholder’s profit function is established through a comprehensive consideration of large shareholder’s tunneling behavior, propping behavior and trade behavior in the secondary stock market. And then a detailed analysis of the changes in large shareholder’s behavior under the condition of full circulation is made. It is considered that large shareholder will seek capital gains income through the trade in secondary stock market after full circulation. The large shareholder’s tunneling behavior, propping behavior and trade behavior in the secondary stock market will be affected by its shareholding proportion, the profitability and growth of listed companies, the degree of deviation between the stock price and the real value of it, the degree of supervision and the share proportion which large shareholder will purchase or sell in the future.

Key words: large shareholder, profit function, capital gain