Securities are all kinds of economic rights and interests certificates. Therefore, the securities market in a broad sense refers to all places where securities are issued and traded. In a narrow sense, the most active securities market refers to capital security market, currency securities market and commodity securities market. It is a place where stocks, bonds, commodity futures, stock futures, options, interest rate futures and other securities products are issued and traded.
The securities issuance market, also known as "primary market" or "primary market", is a market formed by issuers selling securities to investors for the purpose of raising funds in accordance with certain legal provisions and issuance procedures. As an abstract market, the securities issuance market is not limited to a fixed place. The securities issuance market reflects the market relationship of securities flowing from issuers to investors.
The competition between issuers and investors is an opportunity for the formation of the securities issuance market. In the securities issuance market, not only securities flow from issuers to investors, but also monetary funds flow from investors to issuers. Therefore, the securities issuance market is not only a market for issuers to raise funds, but also a market for investors to provide investment opportunities.
The stock exchange market is the place where the issued securities are circulated and transferred through transactions. Compared with the issuing market, the securities trading market is also called "secondary market" or "secondary market". Securities enter the circulation market after underwriting in the issuance market, which reflects the market relationship between new and old investors' investment withdrawal and investment entry. Therefore, the securities circulation market has two functions: one is to provide a place for securities holders to sell their securities at market prices when they need cash; The second is to provide investment opportunities for new investors. The stock exchange market can be divided into tangible exchange market and intangible OTC market.