This chapter is divided into three sections, namely, securities and securities market, securities market participants and the status and function of securities market.
The first section starts with the basic concept of securities, and expounds seven classifications of securities and their respective concepts. According to different issuers, securities can be divided into corporate securities, financial securities, government securities and international securities. According to the different marketability, it can be divided into marketable securities and priceless securities; According to listing or not, it can be divided into listed securities and unlisted securities; According to whether the income is fixed or not, it can be divided into fixed income securities and variable income securities; According to different regions or countries, it can be divided into domestic securities and international securities; According to different issuance methods, it can be divided into public securities and private securities; According to different nature, it can be divided into stocks, bonds and other securities. Securities have the characteristics of property right, term, profitability, liquidity and risk. The securities market is the market where securities are issued and traded. Compared with commodity market and lending market, securities market has its obvious characteristics. The securities market can be classified according to different standards. According to different functions, the securities market can be divided into distribution market and circulation market; According to the different nature of securities, it can be divided into stock market and bond market; According to the different forms of trading organization, it can be divided into exchange market and OTC market.
The emergence of securities market is closely related to the development of socialized mass production and commodity economy, especially the development of joint-stock companies and credit system. The period of rapid development of the securities market is from the early 20th century to the 1920s. After experiencing the economic crisis in the late 1920s and early 1930s and the two world wars, the securities market has been highly prosperous since the late 1970s, showing brand-new features of financial securitization, corporatization of securities investors, diversification of securities trading, liberalization of securities market, internationalization of securities market and computerization of securities market. The future development of the securities market will present a new trend of further deepening financial innovation and internationalization of the securities market in developing countries and regions.
The second section mainly expounds the participants in the securities market. Participants in the securities market include securities market entities, securities market intermediaries, self-regulatory organizations and securities regulatory agencies. The main body of the securities market includes securities issuers and investors. Issuers are the government and its institutions, financial institutions, companies and enterprises. Investors are mainly divided into institutional investors and individual investors. Institutional investors mainly include government departments, enterprises and institutions, financial institutions and public welfare funds. Intermediaries in the securities market include securities operating institutions and securities service institutions. Securities institutions refer to securities underwriters, securities brokers and securities dealers. Securities service institutions mainly refer to securities registration and settlement companies, securities investment consulting companies, credit rating agencies, accounting firms, asset appraisal agencies, law firms and securities information companies. Self-regulatory organizations include securities associations and stock exchanges. Securities regulatory agencies can be divided into government regulatory agencies and self-regulatory agencies. According to the different settings, there are two types of government regulatory agencies: independent agency management and government agency management. The current government regulatory agency in China is the China Securities Regulatory Commission and its subordinate regional securities and futures regulatory departments.
The third part mainly expounds the position and function of the securities market. According to the division of the whole financial market system, the securities market belongs to the capital market and is an important part of the financial market. At the same time, the securities market is closely related to the money market, and the funds in the securities market are often short-term funds. According to the financing mode, the long-term financial market is divided into indirect financing market and direct financing market, and the securities market belongs to direct financing market, which can reduce financing costs and raise stable capital supply for enterprises and governments, and occupies an important position in the financial market. The basic economic functions of the securities market are: raising funds, pricing securities assets, allocating resources and serving the transformation of state-owned enterprises.
Chapter II Stocks
This chapter is divided into four sections, namely, joint stock limited company, stock characteristics and classification, common stock and preferred stock, and the current stock types of listed companies in China.
The first section mainly introduces the basic knowledge of a joint stock limited company, including its nature, establishment, organization, financial accounting, merger, division, bankruptcy, dissolution and liquidation. A joint stock limited company has the general nature of a joint stock company, that is, it has the qualification of an independent legal person, is established by means of share financing, has the permanence of share investment, and has the separation of ownership and management rights. There are two ways to establish a joint stock limited company, one is to initiate the establishment, and the other is to raise the establishment. The organization of a joint stock limited company includes shareholders' meeting, board of directors, board of supervisors and manager. The goal of financial management of joint stock limited company is to maximize the wealth of shareholders, and the content of financial management is divided into fund raising, capital investment and income distribution. By issuing shares, a joint stock limited company separates the ownership of shareholders from the corporate property rights of the enterprise, so issuing shares is the basic content of the operation of a joint stock limited company.
The second section introduces the characteristics and types of stocks, including the nature, characteristics and types of stocks. The essence of stock lies in its attributes in the securities system. Stock has the characteristics of profitability, risk, liquidity, persistence, participation and volatility. Common stock classification methods include common stock and preferred stock, registered stock and bearer stock, nominal stock and non-nominal stock, circulating stock and non-circulating stock.
The third section introduces common stock and preferred stock, mainly including the characteristics of common stock, the rights enjoyed by shareholders of common stock, the characteristics of preferred stock and the types of preferred stock. Common stock is the most basic and important stock, the standard stock and the most risky stock, and its shareholders have the right to participate in the company's business decision-making, the right to distribute the company's profits and remaining assets, and the preemptive right. Preferred stocks are characterized by fixed dividend yield, priority in dividend distribution and priority in surplus assets distribution, and generally have no voting rights. The types of preferred stocks are divided according to different additional conditions, which can be roughly divided into cumulative preferred stocks and non-cumulative preferred stocks.
The fourth part is the stock types of listed companies in China at present. Since the pilot joint-stock enterprises in China began to appear in the mid-1980s and have increased rapidly in recent years, the types of shares in China are complicated at present, including state-owned shares, legal person shares, public shares and foreign shares.