The China Stock Market
The China stock market concept
The China stock market is already issuing price of the stock on time to transfer, sale and circulation of the market, including the exchange market and OTC market in two parts. Because it is built on the basis of the distribution market, also known as the secondary market. In contrast, shares in circulation market structure and trading activities more complex than the distribution market, its role and influence of even greater.
1. Circulation of the function of the market
Stock market circulation of shares in circulation includes all activities. Stock market circulation of the existence and development for the stock issue to create a favorable financing environment, investors can in accordance with their own investment plans and changes in the market, the sale of shares at any time. Since the lifting of investors to worry about, they can rest assured stock market to participate in the subscription, the company is conducive to long-term financing of capital, the smooth flow of stock for stock issuance has played a positive role in promoting. For investors, the stock market circulation, can make short-term and long-term investment in the stock and cash at any time between conversion and enhance the liquidity of the shares and security. Shares in circulation on the market prices reflect a barometer of economic trends, it reflects the sensitive situation of supply and demand of funds, market supply and demand, industry prospects and political situation changes, economic forecasts and analysis of the important indicators for enterprises, The equity of Hangshi transfer and stock fluctuation is the indicator of its operating conditions, but also for large enterprises to provide timely information to help their business decisions and improve management. Clearly, the stock market circulation has an important role.
2. Stock method
Transfer of shares traded in the form known as the trading methods and means, it is the basic stock trading circulation links. Modern flow of stock market trading trading range, from different perspectives can be divided into the following three categories:
(1) bargain sale and auction sale
The prices of both buyers and sellers from different decision, divided into bargain sale and auction sale. Bargain sale is the buyer and seller in one-on-one interviews, reached through bargaining transaction. It is commonly used in over-the-counter approach. General in equities can not the city, less transactions, or the need for confidentiality in order to save the commission, under the circumstances, and so on. Refers to the sale of the auction buyers and sellers are composed of people from several groups, both open to the public two-way competition of the transaction, that is, not only in transactions between buyers and sellers bid and asking price competition, but also in groups of buyers and sellers within the group There is intense competition, in the final buyer and the seller the highest bidder among the lowest cost transaction. The two sides in this competition, the buyer can freely choose the seller, the seller can also be free to choose the buyer to make a more fair trading, the price more reasonable. The auction sale of securities trading in the Stock Exchange is the main form.
(2) Direct and indirect trade transactions
According to a deal in different ways, divided into direct and indirect trade transactions. Direct trade is to directly negotiate buyers and sellers, buyers and sellers on its own stock from liquidation settlement, in the transaction does not involve any intermediary in the trading. Most of direct OTC transactions. Indirect trade is not directly buyers and sellers to meet and contact, but by an intermediary for the sale of stock trading. Stock Exchange brokers in the system, is a typical indirect transactions.
(3) spot transactions and futures trading
According to different delivery period, divided into spot transactions and futures trading. Current loan-to-transaction is the sale of stock transactions, the liquidation procedures immediately for delivery, the two-spot cargo of money, the futures contract after the stock is set forth in the contract price, quantity, a number of times to conduct the liquidation delivery trading.
3. Circulation of the composition of the market
Circulation of the constituent elements of the market are: (1) stock holders, in this as the seller, (2) investors, in this as the buyer, (3) provide for the flow of stock transactions, transfer conditions to facilitate the operation of the credit intermediary agencies, such as Securities companies or the Stock Exchange (customary called Stock Exchange).
Exchange market is the stock market circulation of the most important component of exchanges are also members, securities dealers and securities brokers in the securities market in the trading of listed stocks on the premises, is the mainstay of the secondary market. Specifically, it has a fixed exchange transactions and fixed the time. Acceptance and compliance with the relevant legal requirements for the sale of shares to the stock holders and investors have the opportunity in the market through brokers free trade turnover, clearing and settlement. Securities companies are also an important secondary market on the financial intermediaries, one of its most important function is to provide investors buying and selling stocks and other securities, and to provide for the preservation of customer securities, for customer financing Rongquan, to provide securities investment information and other business services.
Over-the-counter market known as the first shop in the market or the counter market. It and the exchanges together constitute a complete market system for securities transactions. OTC market is actually 10 million by securities firms composed of abstract securities trading market. In the OTC market easy market, mostly at the same time each securities firm with brokers and dealers dual identity, at any time and the sale of securities investors through direct contact or telephone, telegraph, including a deal quickly. As dealers, securities dealers to create a market function. Dealers often accordance with its own characteristics, select a few target transactions. As securities brokers, dealers and customers for a securities trading firm transactions. Here, only customers of Securities Dealers agents that he did not bear any risk, charge a small fee as compensation.
