Brief introduction of securities companies
A securities company is a legal person enterprise specializing in securities trading. Divided into securities management companies and securities registration companies. In a narrow sense, a securities company refers to a securities business company, which is an institution that specializes in securities business after being approved by the competent authority and obtaining a business license from the relevant administrative department for industry and commerce. Having the membership of a stock exchange, you can underwrite the issuance, self-management or agent trading of securities. Ordinary investors must invest in securities through securities companies.
In different countries, securities companies have different names. In the United States, securities companies are called investment banks or securities brokers. In Britain, securities companies are called commercial banks. On the European continent, Germany is the representative. Because of the mixed operation system, investment bank is only a department of universal bank. In East Asia, represented by Japan, it is called a securities company.
Classification of securities companies
Judging from the functions of securities companies, it can be divided into:
bill broker
That is, the securities brokerage company. Securities institutions that buy and sell securities accept the entrustment of investors to buy and sell securities on their behalf, and charge a certain commission, such as Soochow Securities Suzhou Sales Department and jianghai securities Brokerage Company.
Securities dealer
That is, comprehensive securities companies can buy and sell securities on their own, in addition to the licensing rights of securities brokerage companies. They are well-funded and can directly enter the exchange to buy and sell stocks for themselves. Such as Guotai Junan Securities.
Securities underwriter
An institution that helps issuers sell securities by underwriting or consignment. In fact, many securities companies operate these three businesses at the same time. According to the current practice in various countries, all member companies of a stock exchange can conduct proprietary trading in the trading market, but few securities companies specialize in proprietary trading.
In addition, some certified innovative securities companies also have the authority to create warrants, such as CITIC Securities.
A securities registration company is a service organization for centralized registration and transfer of securities. It is an indispensable part of securities trading and has the nature of administrative management. It can only be established after examination and approval by the competent authority.
Characteristics of securities companies
1, most of which are state-controlled enterprises, and the gift of assets must comply with the relevant regulations of the state-owned assets management department;
2. Most of them are unlisted companies with limited share circulation and no market price, but they have listing plans, which can meet the relevant regulations of listed companies.
Therefore, stock options and employee stock ownership are more suitable for Chinese securities companies. Characteristics of securities companies