In principle, there is no difference between stock market institutions and main players.
In stock market investment transactions, stock market institutions are the main force, and institutional investors refer to legal entities that specialize in securities investment, generally including fund companies, insurance companies, syringe companies, etc. Institutional investors have large amounts of funds and are often able to dominate stock trends. They also have many channels for obtaining information and can respond quickly to the dynamics of the stock market.
The stock market is a place for stock issuance and trading, including the issuance market and the circulation market. By issuing stocks to the public, joint-stock companies quickly concentrate a large amount of funds to achieve large-scale production operations; while the dispersed capital surplusers in society invest in joint-stock companies and seek wealth based on the principle of "maximum benefit sharing and maximum risk sharing" value added.
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. Investors can buy and sell stocks at any time according to their own investment plans and market changes.
Since investors are relieved of their worries, they can safely participate in subscription activities in the stock issuance market, which is conducive to companies raising long-term funds, and smooth stock circulation also plays a positive role in promoting stock issuance.
For investors, through the activities of the stock circulation market, long-term investments can be short-term, and they can be converted between stocks and cash at any time, which enhances the liquidity and safety of stocks. The price in the stock circulation market is a barometer that reflects economic trends. It can sensitively reflect changes in capital supply and demand, market supply and demand, industry prospects and political situations. It is an important indicator for prediction and analysis. For enterprises, equity The transfer of stocks and the rise and fall of the stock market are indicators of their business conditions. They can also provide companies with a large amount of information in a timely manner, which is helpful for their business decisions and improvement of business management. It can be seen that the stock circulation market plays an important role.
2. Stock trading method
The method and form of transferring stocks for buying and selling is called trading method, which is the basic link in stock circulation transactions. There are many types of buying and selling methods in the modern stock circulation market, which can be divided into the following three categories from different perspectives:
(1) Negotiation buying and selling and bidding buying and selling
The prices are determined by both buyers and sellers. Different, divided into negotiation buying and selling and bidding buying and selling. Bargaining is a one-on-one negotiation between the buyer and the seller, and they conclude a sale through bargaining. It is a commonly used method in OTC trading. It is generally used when the stock cannot be listed on the market, the trading volume is small, confidentiality is required or to save commissions.
Auction buying and selling refers to a transaction in which both buyers and sellers are a group of several people, and both parties openly engage in two-way competition. That is, the transaction not only involves bidding and asking price competition between buyers and sellers, but also among the buyer group. There is also fierce competition within the seller group, and in the end the transaction is concluded between the buyer with the highest bid and the seller with the lowest asking price. In this kind of two-party competition, the buyer can freely choose the seller, and the seller can also freely choose the buyer, making the transaction fair and the price generated more reasonable. Bidding is the main way to buy and sell stocks on the stock exchange.
(2) Direct transactions and indirect transactions
According to different methods of reaching transactions, they are divided into direct transactions and indirect transactions. Direct trading is a trading method in which buyers and sellers negotiate directly, and the stocks are cleared and delivered by the buyers and sellers themselves. There is no intermediary involved in the entire transaction process. Most OTC transactions are direct transactions.
Indirect trading is a trading method in which the buyer and the seller 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, it is divided into spot trading and futures trading. Spot trading means that after a stock transaction is completed, the delivery and clearing procedures are immediately carried out, and the money and goods are cleared on the spot. Futures trading is a trading method in which the stock is traded according to the price and quantity specified in the contract, and then delivery and clearing is carried out after a certain period of time.