Will the securities company go bankrupt?

Generally speaking, formal large securities companies will not, because securities companies are equivalent to intermediary companies. As long as there is a stock market and stocks, securities companies generally will not go bankrupt. However, some small securities companies do not operate in a formal way, which will lead to the risk of bankruptcy.

What is a securities company:

Securities companies are legal entities specializing in securities trading, which are divided into securities management companies and securities registration companies. In a narrow sense, a securities company refers to a securities management company approved by the competent authority and recognized by the competent authority.

An institution that has obtained a business license with the approval of the administrative department for industry and commerce and specializes in securities business. 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 broker-dealers. ; In Britain, securities companies are called commercial banks); ; In continental Europe (represented by Germany), because of the mixed operation system, investment banks are only a part of universal banks. In East Asia (represented by Japan), it is called a securities company.

How to dispose of investors' funds after the bankruptcy of securities companies;

If investors only use securities accounts for stock trading, the third-party depository system shall be implemented for the funds in personal securities accounts, even if the securities company goes bankrupt, it will not affect personal funds; If investors participate in other businesses of the company, such as purchasing wealth management products issued by securities companies, they may get some compensation after the bankruptcy and liquidation of securities companies.

In a word, investors should try their best to choose securities companies with large scale, high rating and strong management ability when choosing securities companies to open accounts.