The specific functions of securities institutions include: engaging in self-operated securities business, buying and selling securities on behalf of investors, and issuing and selling securities on behalf of securities issuers.
There are three kinds of securities institutions: securities underwriters, securities brokers and securities dealers. A securities underwriter is a securities business organization that operates the agency securities issuance business. Securities underwriters underwrite or sell securities on a commission basis, all of which act as bankers' agents. The funds raised by issuing bonds shall be owned by the issuer except for underwriting fees. A securities broker is a securities operating institution that directly represents both buyers and sellers of securities to enter the exchange to participate in transactions and collect commissions. A securities firm refers to a securities operating institution that invests and buys securities on its own, takes risks independently, and obtains the difference income or investment income from the securities it invests and buys.