Now it is an economic and financial society, and many people around us are directly or indirectly engaged in financial work, and securities is one of them. The following is the knowledge I brought to you about the main business of securities companies. Welcome to reading.
What is a securities company?
When it comes to the main business of a securities company, we must first understand what a securities company is. Securities companies are the main intermediaries in the securities market and play an important role in the operation of the securities market. On the one hand, securities companies are providers of investment and financing services in the securities market, providing specialized intermediary services for securities issuers and investors, such as securities brokerage, investment consulting, sponsorship and underwriting. On the other hand, securities companies themselves are also important institutional investors in the securities market.
Main business of securities companies
Securities companies have eight major businesses, mainly including securities brokerage business, securities investment consulting business, financial consulting business related to securities trading and investment activities, securities underwriting and sponsorship business, securities proprietary business, securities asset management business, margin trading and securities lending business, securities company intermediary introduction (IB) business and direct investment business. In order to help friends understand these businesses, here is a brief introduction:
1, securities brokerage business
Securities brokerage business, also known as agent buying and selling securities business, refers to the business that securities companies buy and sell securities on behalf of customers. In securities brokerage business, securities companies only charge a certain percentage of commission as business income. At present, China's public offering and listing of stocks, corporate bonds, warrants and other securities are conducted in an open and centralized way. Securities companies engage in brokerage business mainly through the stock exchange to buy and sell securities on behalf of customers.
2. Securities investment consulting business
Securities investment consulting business refers to the activities of institutions and their consultants engaged in securities investment consulting business to provide securities investment analysis, prediction or advice to securities investors or customers. Consulting services paid directly or indirectly.
3. Financial consulting business related to securities trading and securities investment activities.
Financial consulting business refers to consulting, suggesting and planning business related to securities trading and securities investment activities. Specifically including:
(1) Provide consulting services such as reorganization, asset reorganization and pre-counseling for enterprises to apply for securities issuance and listing;
(2) Providing consulting services for major investments, mergers and acquisitions and related transactions of listed companies;
(three) to provide consulting services for legal persons, natural persons and other organizations to acquire listed companies and related asset restructuring and debt restructuring;
(4) Providing consulting services for listed companies to improve corporate governance structure, design executive stock options, employee stock ownership plans, investor relations management, etc.
(5) Providing consulting services in financing planning, scheme design and roadshow promotion for capital operations such as refinancing, asset restructuring and debt restructuring of listed companies;
(six) to provide consulting services for creditors and debtors in debt restructuring, asset restructuring and related equity restructuring of listed companies, and other business forms recognized by the China Securities Regulatory Commission.
4. Securities underwriting, underwriting and consignment business
Securities underwriting refers to the behavior of securities companies issuing securities on behalf of securities issuers. Where the securities publicly issued by the issuer to unspecified objects should be underwritten by a securities company according to laws and administrative regulations, the issuer shall sign an underwriting agreement with the securities company. Securities underwriting business can be commissioned or underwritten.
Securities underwriting refers to the underwriting method in which a securities company buys all the securities of the issuer according to the agreement or buys all the remaining securities after selling by itself at the end of the underwriting period. The former is underwritten in full, and the latter is underwritten in balance.
Securities consignment refers to the underwriting method in which securities companies sell securities on behalf of issuers and return all unsold securities to issuers at the end of the underwriting period.
China's Securities Law also stipulates the underwriting method of the underwriting syndicate. According to the provisions of the Securities Law, if the total face value of securities issued to unspecified objects exceeds 50 million yuan, it shall be underwritten by an underwriting syndicate, which consists of the lead underwriter and the securities companies participating in the underwriting.
5. Securities proprietary business
Securities proprietary business refers to the behavior of securities companies to buy and sell securities listed and traded on domestic stock exchanges, government bonds, RMB bonds of international development institutions, central bank bills, financial bonds, short-term financing bonds, corporate bonds, medium-term notes and corporate bonds, as well as securities approved or filed by China Securities Regulatory Commission and traded over the counter of domestic financial institutions.
6. Securities asset management business
Securities asset management business refers to the behavior that securities companies, as asset managers, provide investors with investment management services of securities and other financial products in accordance with the relevant laws and regulations and the asset management contracts signed with investors, in accordance with the ways, conditions, requirements and restrictions stipulated in the asset management contracts, so as to maximize asset returns.
7. Margin trading business
Margin trading refers to the business that securities companies lend money to customers to buy securities or issue securities for customers to sell securities. Securities transactions arising from margin trading are called margin trading. Margin trading can be divided into two types: margin trading and margin trading. When a customer borrows money from a securities company to buy securities, it is called margin financing and securities lending, and when a customer borrows securities from a securities company and sells them, it is called margin financing and securities lending.
8. Intermediary introduction of securities companies (IB) business
IB (Introduction Broker) refers to the business model that an institution or individual accepts the entrustment of a commission agent to introduce customers to the commission agent and charge a certain commission. Intermediary introduction (IB) business of securities companies refers to the business activities of securities companies to introduce customers to futures trading and provide other related services by accepting commissions.
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