Broker's proprietary trading is a business activity in which securities companies buy and sell securities in their own names and funds, and obtain benefits from them.

The trading places of proprietary business of securities companies are divided into two categories: 1. OTC proprietary trading:

OTC proprietary trading refers to the securities trading in which clients and securities companies directly negotiate and conclude transactions one-on-one through OTC trading.

2. On-market (stock exchange) proprietary trading:

On-market proprietary trading refers to the proprietary trading of securities by securities companies on the stock exchange.

introduction of securities companies:

a Securities Company is a legal person enterprise specializing in the trading of securities, which can be divided into securities management companies and securities registration companies. In a narrow sense, a securities company refers to a securities business company, which is an institution that specializes in securities business after being approved by the competent authority and obtaining a business license from the relevant administration for industry and commerce. It has the membership of the stock exchange and can underwrite the issuance, self-trading or self-trading and acting as an agent to buy and sell securities. Ordinary investors' securities investment must be carried out through securities firms.

Classification of securities:

There are two concepts of securities in broad sense and narrow sense. The broad sense of securities includes commodity securities, currency securities and capital security.

1. Commodity securities:

Commodity securities are documents that prove that the holder has the ownership or use right of commodities. Obtaining such securities is equivalent to obtaining the ownership of such commodities, and the holder's ownership of commodities represented by such securities is protected by law. Commodity securities include bills of lading, waybills, warehouse bills, etc.

2. Currency securities:

Currency securities refer to securities that enable the holder or a third party to obtain the right to claim money. Currency securities mainly include two categories: one is commercial securities, mainly including commercial bills and commercial promissory notes; The other is bank securities, mainly including bank drafts, cashier's checks and checks.

3. capital security:

capital security refers to securities generated by financial investment or activities directly related to financial investment. The bondholder has a certain right to claim income from the issuer, which includes stocks, bonds and their derivatives such as fund securities and convertible securities.

capital security is the main form of securities, and the narrow sense of securities refers to capital security. In daily life, people usually refer to the narrow sense of securities-capital security directly as securities and even securities.