Extended information:
Stock market, the abbreviation of stock market, is the place where issued stocks are transferred, traded and circulated, including exchange market and OTC market.
The stock market is the place where stocks are issued and traded, including the issuance market and the circulation market. By issuing shares to the society, the company quickly concentrated a large amount of funds and realized the large-scale operation of production; Those who have dispersed the surplus funds in society invest in joint-stock companies in the principle of "sharing interests and risks" and seek wealth appreciation.
Exchange is the most important part of the stock circulation market, and it is also the place where exchange members, securities dealers or securities brokers buy and sell listed stocks in the stock market, and it is the main body of the secondary market. Specifically, it has a fixed exchange and fixed trading hours.
And accept and handle stock listing matters according to relevant laws, so that original stock holders and investors have the opportunity to freely buy and sell, close positions, settle accounts and deliver through brokers.
Securities companies are also one of the important financial intermediaries in the secondary market. Its most important function is to buy and sell stocks and other securities for investors, provide securities preservation, margin financing and securities lending services for customers, and provide securities investment information for customers.
OTC market is also called OTC market or OTC market. Together with the exchange, it constitutes a complete securities trading market system. In fact, the OTC market is an abstract securities trading market composed of thousands of securities companies. In the OTC market, each securities company has the dual identity of broker and dealer, and can quickly reach a deal with investors who buy and sell securities at any time through direct contact or telephone or telegram. Brokers, as self-dealers, have the function of creating markets.
Brokers often choose several trading partners according to their own characteristics. As a brokerage securities company, securities companies conduct transactions with securities trading companies for customers. Here, the broker is only the agent of the customer. He doesn't take any risks and only charges a small fee as compensation.
In the stock market, the trend of stock price depends on the movement of funds. Large financial institutions can influence or even manipulate the rise and fall of stock prices to a certain extent.
They can make use of their own financial strength and take various ways to create a false market and profit from it, thus making the stock market speculative. But this does not represent the whole stock market, nor does it reflect the essence of the stock market.