1) London Stock Exchange.
London Stock Exchange is a world-famous stock exchange and one of the major stock exchange centers in the world. It has the longest history among the three major stock exchanges in the world (new york Stock Exchange, Tokyo Stock Exchange and London Stock Exchange), with a history of more than 200 years.
The London Stock Exchange originated from the open-air market on Exchange Street in London at the end of 17, and was the "Royal Exchange" for buying and selling government bonds at that time. 1773, the open-air market moved into Svarding Street for trading and was named London Stock Exchange. 1973, London Stock Exchange is located in Grasl, Liverpool, Manchester, Birmingham and Ireland. The current London Stock Exchange is located between Old Broadway Street and Slum Street, in a 26-story building in the City of London. The London Stock Exchange stands out among the stock exchanges in Britain. There are ***200 securities brokerage companies in Britain with 65,438+500,000 employees. Among the 124 member companies of the London Stock Exchange, there are 1 1O securities brokerage companies, accounting for more than 50%, and 14 are securities wholesale companies. The London Stock Exchange has 1600 executives and 4,200 exchange staff. Of the seven stock exchanges in Britain, only London is national and the other six are local.
(2) Organization of London Stock Exchange.
The London Stock Exchange is a company limited by shares. Most shareholders are members of the Exchange, and each shareholder shall not hold more than 200 shares. At present, its membership is about 4,500, which is three times that of new york Stock Exchange.
The organization of the London Stock Exchange is a membership system, and its leading body is a board of directors elected by members. The board of directors is responsible for managing, recruiting new members, formulating trading rules, determining the proportion of handling fees and arbitrating related disputes, as well as supervising the business of the exchange and preventing speculative activities. The board of directors has special committees on business, arbitration, personnel and finance, among which the business Committee is the most important and can decide whether the securities are listed or not. 1974 the London stock exchange has established the post of "president" to preside over the daily work of the exchange. The source of funds for the board of directors is the membership fees paid by members, not the business of the exchange.
Members of the London Stock Exchange were initially divided into two categories, one is brokers and the other is proprietary traders. Brokers are mainly engaged in buying and selling on behalf of customers. They buy and sell securities according to customers' requirements, and their income comes from commissions paid by customers. Bankers buy and sell securities themselves, and the income is the difference between buying and selling. In addition, they are forbidden to deal directly with customers. However, after the major reform of 1986, these two types of members have merged into one, and the ban on direct trading with customers has also been lifted.
Members of the London Stock Exchange can basically be divided into two categories: brokers and salespeople. Shop assistants are professionals who master the securities market and handle securities transactions at all trading counters of the exchange. Brokers are the backbone of the stock exchange. Brokers are divided into individual brokers and corporate brokers. Individual brokers are usually limited by age, education, reputation, business experience and asset guarantee. Company brokers are legally registered banks, trust companies, securities companies, investment companies, finance companies and other institutions, and their capital has a minimum. According to the regulations, a company broker must appoint a representative with the same qualifications as an individual broker, but no asset guarantee is required.
(3) transaction method.
The London Stock Exchange is divided into eight trading desks, and the listed securities belong to each trading desk. When trading securities, when the client's entrustment to buy or sell a certain kind of securities reaches the broker, the broker immediately goes to the trading desk of this kind of securities in the trading hall and asks the business personnel to put forward the buying price and selling price respectively. Brokers sell to the highest bidder and buy from the lowest bidder in the bids of various traders. The bidding right in the stock market belongs to the business personnel of the exchange, and the brokers have no bidding right.
Customers (including enterprises or individuals) buy and sell stocks, bonds and other securities through brokerage companies, that is, corporate brokers. Customers who want to buy or sell securities can call the brokerage company or contact the information department of the exchange by letter, and the information department will recommend suitable brokers to customers. Whether by telephone or letter, it is necessary to make clear the types and quantities of securities to be bought and sold. Because of the fierce competition among brokers, in order to expand their business, they must win customers, so they generally try their best to make suggestions for customers and strive for high selling price or low buying price. At this point, the goals of brokers and customers are the same. If brokers can sell as high as possible and buy as low as possible, it will also help to improve their reputation in order to attract more customers. General brokers will call their brokers in the exchange immediately after receiving the entrusted phone call from customers or the notice from the information department of the exchange. After receiving the notice from the company, the broker immediately went to the trading hall to carry out trading activities for customers. If the transaction is completed, he will call the customer to fill in the stock (or bond) purchase and sale form, and the customer will pay or collect money.
Brokerage companies (brokers) generally collect commissions from customers after brokers complete the business entrusted by customers. The commission is charged according to the size of the transaction amount and the length of the transaction time. The commission is charged in the following three ways:
1 bargaining type. Generally, small stocks, bonds or short-term bonds adopt this method, which is more flexible.
② Quota formula. Exchanges with medium trading volume generally adopt this method.
(3) Charge by rate. This method is generally used for transactions with large transaction amount.
As an investor, customers buy and sell securities, in addition to paying commissions to brokers, they also have to bear other expenses, such as stock transfer and stamp duty.
The most basic securities trading methods in London Stock Exchange can be divided into spot trading and futures trading. Among all kinds of securities, the transaction of government bonds must be delivered on the same day. In addition to spot trading and futures trading, there are other trading methods in the London Stock Exchange, such as option trading, TradedOption trading, bookkeeping trading, and replenishment and extension trading. The following are descriptions respectively.
(1) securities options trading. Options trading in London Stock Exchange is similar to options trading in American stock market. In the lobby of the London Stock Exchange, there is a trading desk dedicated to this kind of transaction. The main contents of option trading include: investors, as buyers of options, need to pay the fees for purchasing options to securities companies that operate options; Investors (buyers) choose a contract period (usually 3 months) and the price of the securities agreement within the contract period; During the validity of the contract, investors have the right to choose favorable opportunities to buy and sell the shares stipulated in the agreement at the agreed price according to the changes in market conditions. If the change of stock price is unfavorable to the investor, he can give up the option. Giving up options means that investors lose the cost of buying options. Option trading can be divided into "call option", "put option" and "put option".
(2) Securities option trading. Option trading right is easily confused with option trading. In essence, the buying and selling of options is a kind of buying and selling of withdrawal fees, and it is the transfer of options in option trading. Option trading is different from option trading. Option trading refers to profit from buying and selling stocks within the validity period of the contract, and option trading refers to profit from transferring and selling its agreement. For example, investor A bought 65,438+000 "put options" from a securities company at an agreed price of 60 pounds, and the stock fell to 40 pounds within the validity period of the contract. A will demand to sell 65,438+000 shares at the agreed price of 60 pounds, and the securities company must undertake this obligation. If the option fee is 2 pounds per share, A can make a profit of 2,000 pounds by selling shares, and after deducting the option fee (excluding commission and other factors for the time being), it can make a profit of 65,438 pounds+0,800 pounds. This is option trading. A can also sell "put option" agreements to securities companies or other investors instead of selling stocks. According to the above statement, the price of "put option" can rise to 20 pounds per share, and A still makes a profit of 2,000 pounds. After deducting the cost of buying put options from 200 pounds, you can get a net profit of 1800 pounds. This kind of transaction is called option trading. It can be seen that option trading is a trading method for investors to buy "call options" or "put options" according to their own judgments on the stock market. If the market rises or falls as expected during the validity of the contract, the investor will sell the option itself back to the securities company or other investors. To sum up, there is no essential difference between option trading and option trading. The options trading business of London Stock Exchange started from 1978 and developed rapidly. The main reason is that this investment method is small in scale and its income is not lower than that of option trading, which is very attractive to speculators.
(3) Bookkeeping transactions and covering positions. This trading method, also called swap trading, is a way for investors to speculate. The basic ways of this trading method are long (short) and short (short). When speculators think the stock market is bullish, they will do more, that is, buy and sell after the price rises. By the delivery date, if the price rises as expected, you can earn differential income or speculative profits after making ends meet. But if the price rises as expected, he will lose money. In this case, if the stock continues to fall, he will not swap. However, if through the analysis of all kinds of information, he thinks that the stock may stop falling and rebound in a few days, then on the delivery day, he will inform the brokerage firm to sell the original stock and buy the same stock at the same time. At the next delivery, brokers will find relevant brokers to transfer their shares, that is, they will settle the accounts according to the current transaction and then register in the next trading period, which is actually to postpone (or transfer) the current delivery to the next delivery. By the delivery date of the current period, speculators should pay the brokerage commission and the price difference (that is, the price difference loss caused by the current stock price decline). The above are bulls (bears). Similarly, short positions are just the opposite, but the principle is the same. The function of this method is to change the physical delivery of futures trading into bookkeeping, and speculators can save a lot of money to buy stocks on the delivery date and receive the same results as physical delivery. Speculators use book-entry trading and make-up time to speculate on stocks, and often adopt the method of paying equal attention to both bulls and bears, that is, from the perspective of speculators, bullish stocks are long and bearish stocks are short, so as to achieve the effect of making up for one loss.