Different in nature. A securities finance company, also known as a securities financing company, refers to a legal person institution established in the securities market according to law and specializing in securities financing business. However, a securities company is a place that is approved by the competent authority and has a legal business license and specializes in securities business.
The mechanism of management decision-making is different. The decision-making bodies of the stock exchange are the general meeting of members and the board of directors, and the securities companies are the general meeting of shareholders and the board of directors. Securities finance companies obtain funds from the stock market or banks, and then provide these funds to investors who need financing, and provide the stocks guaranteed by financing to investors who borrow securities according to regulations. As a medium between investors and securities companies, it promotes the activity and perfection of the financial system in the trading market. For investors, they only have direct contact with securities companies. If they need to buy or sell stocks, they can go to the securities company for entrustment. After accepting the entrustment, the salesman of the securities company will immediately notify the resident traders of the stock exchange. After receiving the entrustment notice, the resident trader shall make a public declaration in a certain way according to the entrustment requirements and complete the transaction.
Different responsibilities. Securities trading provides a corresponding guarantee for organizing fair centralized trading. The main responsibility of securities companies is to design and plan the stock inspection and listing of restructured enterprises, and more importantly, to provide corresponding intermediary services for ordinary investors to buy and sell stocks. The main functions of securities finance companies are financing and lending for securities companies, and they are not engaged in securities trading business; Securities companies can also be called securities management companies, underwriting issuance, self-supporting or self-supporting and buying and selling securities as agents. A securities company is a legal person enterprise specializing in securities trading. 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.