Legal analysis: Securities companies specialize in the issuance and trading of these securities. Members who own stock exchanges can underwrite the issuance (investment banking business), buy and sell securities on their own or as agents. The business scope of securities companies includes: securities underwriting and sponsorship business: it refers to the recommendation of securities companies on the issuance, market and sales of securities when enterprises conduct initial public offering. Self-operated business: refers to a securities company that has sufficient funds and can directly enter the exchange to buy and sell stocks; In addition, it also provides financial services for customers' idle funds.
Legal basis: Article 122 of the Securities Law of People's Republic of China (PRC) stipulates that the establishment of a securities company must be examined and approved by the securities regulatory authority of the State Council. Without the approval of the State Council securities regulatory authority, no unit or individual may engage in securities business.