The secondary stock market refers to the circulation market, which is the place where issued stocks are traded;
the third-tier market is a stock exchange market in which non-exchange members conduct over-the-counter transactions on common stocks listed on national exchanges.
Stock Market, the abbreviation of stock market, is the place where issued stocks are transferred, traded and circulated, including exchange market and OTC market.
1. Functions of the circulation market:
The stock circulation market includes all activities of stock circulation. The existence and development of the stock circulation market has created a favorable financing environment for stock issuers, and investors can buy and sell stocks at any time according to their own investment plans and market changes.
As investors' worries are relieved, they can participate in the subscription activities in the stock issuance market with confidence, which is conducive to the company's raising of long-term funds, the smooth circulation of stocks and the positive promotion of stock issuance.
for investors, through the activities of the stock circulation market, long-term investment can be shortened, and stocks can be converted between cash and stocks at any time, thus enhancing the liquidity and security of stocks.
The price in the stock circulation market is a barometer reflecting economic trends, which can sensitively reflect the changes of capital supply and demand, market supply and demand, industry prospects and political situation, and is an important indicator for forecasting and analysis;
for enterprises, the transfer of equity and the fluctuation of stock market are indicators of their operating conditions, and can also provide enterprises with a lot of information in time, which is helpful for their business decision-making and improvement of management. It can be seen that the stock circulation market plays an important role.
2. Stock trading mode
The method and form of transferring stocks for buying and selling is called trading mode, which is the basic link of stock circulation trading. There are many kinds of trading methods in modern stock circulation market, which can be divided into the following three categories from different angles:
(1) bargaining and bidding
According to the difference between buyers and sellers in determining prices, they can be divided into bargaining and bidding. Bargaining is a one-on-one interview between the buyer and the seller, and a business transaction is reached through bargaining.
it is a common way in over-the-counter trading. Generally, it is adopted when the stock can't be listed on the market, the trading volume is small, and it needs to be kept secret or in order to save commission.
Bidding refers to a transaction in which both buyers and sellers are groups of several people, and both sides openly compete in two directions, that is, there is not only competition between buyers and sellers for bids and asking prices, but also fierce competition within buyers and sellers, and finally a transaction is made between the buyer with the highest bid and the seller with the lowest asking price.
in this kind of competition, the buyer can freely choose the seller, and the seller can also freely choose the buyer, which makes the transaction fairer and the price more reasonable. Bidding is the main way to buy and sell stocks in the stock exchange.
(2) Direct transactions and indirect transactions
According to the different ways of concluding transactions, they are divided into direct transactions and indirect transactions. Direct trading is a direct negotiation between buyers and sellers, and the stocks are also cleared and delivered by the buyers and sellers themselves, and no intermediary is involved in the whole trading process.
OTC transactions are mostly direct transactions. Indirect trading is a trading method in which buyers and sellers do not meet and contact directly, but entrust an intermediary to buy and sell stocks. The broker system in the stock exchange is a typical indirect transaction.
(3) Spot trading and futures trading
According to different delivery periods, they are divided into spot trading and futures trading. Spot trading refers to the settlement procedures immediately after the stock transaction is completed, and the money and goods are cleared on the spot. Futures trading is a trading method in which the stock is settled after a certain period of time according to the price and quantity stipulated in the contract.