On September 26th, 1986, Jing 'an Securities Business Department, the first securities trading counter in China, opened, marking the official start of stock trading in New China.
1990 and 12 months later, the Shanghai Stock Exchange and the Shenzhen Stock Exchange were announced and opened one after another, which opened the prelude to China stock trading.
1992, the China Securities Regulatory Commission was formally established, which made the stock trading in China gradually embark on the track of standardization and legalization.
The stock market is the place where issued stocks are transferred, traded and circulated, including exchange market and OTC market. Because it is based on the distribution market, it is also called the secondary market. The structure and trading activities of the stock market are more complicated than the issuance market (primary market), and its role and influence are also greater.
The stock market originated from 1602 when the Dutch bought and sold the shares of the Dutch East India Company on the Amster River Bridge. The formal stock market first appeared in the United States. The stock market is a place where speculators and investors are active, and it is a thermometer of economic and financial activities of a country or region. Bad phenomena in the stock market, such as short selling of goods, will lead to various hazards such as the stock market crash. The only constant thing about the stock market is that it keeps changing. There are three trading markets in Chinese mainland: Shanghai Stock Exchange, Shenzhen Stock Exchange and North Stock Exchange.
The method and form of transferring stocks for trading is called trading mode, which is the basic link of stock circulation trading. There are many trading methods in the modern stock circulation market, which can be divided into the following three categories from different angles:
Bargaining and bidding
From the different prices determined by buyers and sellers, it can be divided into bargaining and bidding. Bargaining is a one-on-one interview between buyers and sellers, and a business transaction is reached through bargaining. It is a common way in over-the-counter trading. Generally, it is used when the stock cannot be listed, the trading volume is small, it needs to be kept secret or in order to save commission. Bidding refers to the fact that both buyers and sellers are groups composed of several people, and both sides openly conduct two-way competitive transactions, that is, there is not only competition between buyers and sellers, but also fierce competition within buyers and sellers, and finally the highest bidder and the lowest bidder conduct transactions. In this kind of competition, the buyer can choose the seller freely, and the seller can also choose the buyer freely, which makes the transaction fairer and the price more reasonable. Bidding is the main way for stock exchange to buy and sell stocks.
Direct and indirect transactions
According to the different ways of reaching a transaction, it can be divided into direct transaction and indirect transaction. Direct trading is direct negotiation between buyers and sellers, and stocks are also cleared and delivered by buyers and sellers themselves. There is no intermediary involved in the whole trading process. Most over-the-counter transactions are direct transactions. Indirect trading is a trading method in which buyers and sellers do not meet directly, but entrust an intermediary to buy and sell stocks. The broker system of the stock exchange is a typical indirect transaction.
Spot trading and futures trading
According to the different delivery periods, it can be divided into spot trading and futures trading. Spot trading refers to the settlement procedures immediately after the stock transaction is completed, and the currency and goods are liquidated on the spot. Futures trading is a kind of trading method to settle the stock after a certain period of time according to the price and quantity stipulated in the contract.