I, What is the securities market?
The securities market is a place where stocks, bonds, and other marketable equity and derivative products are issued and traded, in essence, through the issuance and trading of various types of securities to raise and finance funds and go to the overdue interest. In a modern market economy, the securities market reflects and regulates the operation of money and has a significant impact on the functioning of the market economy. The securities market is an important part of the market economy and consists of two parts: the securities issuance market and the securities distribution market.
The securities issue market generally refers to the primary market, which in the context of financial markets is the financial market where companies or government agencies that raise capital sell their newly issued securities such as shares and bonds to initial purchasers. Its function is to provide a channel for the demand for capital to raise funds on the one hand and a place for the supply of capital to invest on the other. Through the securities issuance market, investors' idle capital is transformed into productive capital. The issuance market consists mainly of issuers of securities, subscribers and intermediaries. The issuers of securities include governments, financial institutions, companies and public institutions (e.g., foundations); subscribers, i.e. investors, include both institutions and individuals; and intermediaries refer to general securities firms and certified public accountants, lawyers and asset valuers that service the issuance of securities.
The liquid market for securities refers to the market for buying and selling issued securities, also known as the secondary market and the sub-market. It consists of a stock exchange and an over-the-counter market. It is the place where issued securities are traded through purchase and sale transactions to achieve liquidity. The securities circulation market generally consists of two sub-markets: the stock exchange market, which has a fixed place and fixed trading hours and is the most important centralized securities circulation market; and the over-the-counter market, which is a securities trading counter opened by securities management institutions, where securities not listed on the stock exchange can apply for trading over-the-counter.
II, securities market financing is direct financing or indirect financing
The securities market is direct financing. Listed companies issue shares through the stock exchange, and investors can buy and sell shares directly on the stock exchange, without going through a third party.
Funds, wealth management, etc. belong to indirect financing, while bonds and stocks belong to direct financing.
III, Which markets are included in the securities market
The securities market can be divided into the following markets.
1, The structural relationship formed by the order in which securities enter the market. They can be divided into issuance markets and trading markets.
2, according to the types of listed companies served and covered, they are divided into global markets, national markets and regional markets.
3, Divided into main board market, second board market (GEM or Hi-tech Enterprise Board), etc. according to the differences in the size of listed companies and regulatory requirements.
4, Formed according to the variety of marketable securities. Divided into stock market, bond market, fund market and derivatives market.
5, According to whether the trading activities are carried out in fixed places, there are tangible markets and intangible markets. The tangible market is called the "over-the-counter market", which refers to the market of the stock exchange with a fixed place. The birth of the tangible market is one of the important signs of the centralization of the securities market. The invisible market is called the "over-the-counter market", which refers to the stock exchange market without a fixed place.
6,The composition of the securities market can be divided into the issuing market and the trading market according to the order in which the securities enter the market.
7,The structure of the securities market is based on the structure of the securities market, including the stock market, the bond market, the fund market and the derivative securities market, and the sub-markets are interlinked with each other.
