A securities company refers to a financial institution established in accordance with the Company Law and approved by the the State Council Securities Regulatory Authority, which specializes in securities business and has independent legal personality. The main businesses are brokerage business, proprietary business, asset management business, margin trading, IB business, issuance underwriting business and equity mortgage.
To put it simply, it is actually the agent of the Shanghai Stock Exchange and the Shenzhen Stock Exchange, which is equivalent to an intermediary. If you want to buy stocks or floor funds, you must open an account with a securities company.
Types of securities companies
1, securities broker
That is, securities brokerage companies, mainly securities institutions that buy and sell securities as agents, accept the entrustment of investors to buy and sell securities on their behalf and charge a certain handling fee, that is, commission.
2. Securities dealers
That is, comprehensive securities companies, in addition to the authority of securities brokerage companies, can also enter the exchange to buy and sell securities at their own risk. Generally, they are well funded, such as Guotai Junan Securities.
3. Securities underwriters
An institution that helps issuers sell securities by underwriting or consignment.