The securities market is the product of the development of the market economy to a certain stage. It is a market created to solve the contradiction between capital supply and demand and liquidity. The securities market realizes the connection between financing and investment through the issuance and trading of securities, effectively resolving the contradiction between capital supply and demand and the problem of capital structure adjustment. In a developed market economy, the securities market is an important part of the complete market system. It not only reflects and regulates the movement of monetary funds, but also has an important impact on the operation of the entire economy.

Securities are a collective term for a variety of economic equity certificates. Therefore, in a broad sense, the securities market refers to the place where all securities are issued and traded. In a narrow sense, the most active securities market refers to the capital securities market. , currency securities market and commodity securities market. It is a place for the issuance and trading of securities products such as stocks, bonds, commodity futures, stock futures, options, and interest rate futures.

The components of the securities market mainly include three aspects: securities market participants, securities market trading tools and securities trading venues.

The securities market has the following three distinctive characteristics:

First, the securities market is a place for direct exchange of value. Marketable securities are direct representations of value, which are essentially just a direct expression of value. Although the objects of securities transactions are various securities, because they are direct expressions of value, the securities market is essentially a direct exchange place for value.

Second, the securities market is a place where property rights are directly exchanged. The trading objects in the securities market are securities such as stocks, bonds, investment fund certificates, etc. as evidence of economic rights and interests. They themselves are only representatives of a certain amount of property rights. Therefore, they represent the ownership or claims of a certain amount of property and related Right to income. The securities market is actually a place for direct exchange of property rights.

Third, the securities market is a place where risks are directly exchanged. Marketable securities not only represent certain income rights, but also represent certain risks. The exchange of securities not only transfers certain income rights, but also transfers the risks unique to the securities. Therefore, from a risk perspective, the securities market is also a direct exchange place for risks.