Refers to the securities institutions that buy and sell securities as agents, and brokerage companies that accept the entrustment of investors to buy and sell securities on their behalf and charge a certain commission. In China, investors are retail investors, and the investment target is relatively simple. Usually mainly do stock and fund transactions. Generally speaking, brokers are securities companies. In fact, the business scope of securities companies is more than that of brokers.
Most brokers are fully licensed financial service providers, and only a few small brokers are relatively simple brokers. So in China, brokers can be considered as securities companies. Its main business is to provide various securities financial services, also known as non-banking business, such as brokerage business, asset management business, margin trading business, issuance and underwriting.
Common businesses are as follows:
1 brokerage business.
Acting as an agent to buy and sell securities in Shanghai and Shenzhen stock markets. Investors must open accounts with securities companies and use the trading channels provided by securities companies to conduct securities transactions with the exchange. Securities companies charge service commissions.
2. Self-operated business.
Using the talent advantage, information advantage and market experience of securities companies to invest and operate with their own funds.
3 Asset management business.
Short for asset management business. By virtue of many advantages of securities companies in investment, they provide investment services to customers, that is, help customers manage their finances and earn financial management service fees from them, and customers who lose money bear their own risks. Its representatives are all kinds of financial products provided by securities companies.
4. Margin trading.
Lend money to customers to buy securities or sell securities to customers, and charge customers a service fee.
5IB business.
That is, agent futures business.
6. Issuance and underwriting business.
The shares of joint-stock companies need the guidance and recommendation of securities companies to go public, which involves very professional financial services. Can only rely on the services of securities companies. After listing, help joint-stock companies underwrite in the primary and secondary markets.
7 equity mortgage. You can make a certain scale of equity pledge loans.