A securities firm is a securities company. A securities firm is a financial institution established in the securities market approved by the securities regulatory authority to engage in agency securities issuance business, agency securities trading business, self-operated securities trading business, and agency securities repayment of principal and interest and payment of dividends.

It mainly consists of legal entities.

Securities dealers can be divided into two major categories. One type is securities dealers in the securities issuance market and belongs to securities underwriters; the other type is securities dealers in the securities circulation market and belongs to securities brokers.

Securities brokers can be divided into two categories: securities dealers on the stock exchange and securities dealers on the over-the-counter market.

A securities broker is a securities firm that engages in the business of buying and selling securities on behalf of clients and is an intermediary between securities investors participating in the securities market.

The source of profit for securities brokers is the fee income collected from investors who entrust securities trading, called commission. Countries generally have certain regulations on commission income.

Securities brokers have rich professional knowledge and securities investment experience, and have extensive sources of information and high efficiency. Ordinary investors have little understanding of the securities market, small investment amounts, and cannot directly enter the securities trading market. It is best to buy and sell through securities brokers as agents.

A possible path.

In layman's terms, an investment fund is a type of fund that collects the funds of many dispersed investors and entrusts investment experts (such as fund managers) to conduct unified investment management according to their investment strategies to benefit many investors.

investment tools.

Investment funds gather public funds to jointly share investment profits and risks. It is a collective investment method with maximum benefit sharing and maximum risk sharing.

Securities investment funds raise funds through the public issuance of fund units and use the funds for securities investment.

Holders of fund units enjoy asset ownership, income distribution rights, residual property disposal rights and other related rights to the fund, and assume corresponding obligations.

Simple chart of investment fund operation process Investment fund operation process: 1.

Investors' funds are pooled into funds; 2.

The fund entrusts investment experts - fund managers to invest and operate; among them, (1) investors, fund managers, and fund custodians establish trust agreements through fund contracts, establishing that investors contribute capital (and enjoy returns and bear risks), and the fund

There is a trust relationship between the manager who is entrusted with financial management and the fund custodian who is responsible for the custody of funds.

(2) The fund manager and the fund custodian (mainly banks) establish the responsibilities and rights of both parties through a custody agreement.

3.

Fund managers distribute investment income to investors through professional financial management.

In our country, the fund custodian must be a qualified commercial bank, and the fund manager must be a professional fund manager.

Fund investors enjoy the benefits of securities investment funds but also bear the risk of losses.

Contract funds and corporate funds Contract funds are relative to corporate funds.

Depending on the organizational form and legal status of the fund, there are basically two types of securities investment funds: contractual and corporate.

Contractual fund: Contractual fund, also known as trust investment fund, is an investment fund established by issuing beneficiary certificates based on a trust contract.

This type of fund generally enters into a trust contract between the fund manager, fund custodian and investors.

The fund manager can serve as the sponsor of the fund and raise funds to form trust property by issuing beneficiary certificates. According to the trust contract, the fund custodian is responsible for the custody of the trust property and the specific handling of securities, cash management and related agency business; investment

The investor is also the holder of the beneficiary certificate. By purchasing the beneficiary certificate, he participates in fund investment and enjoys the investment benefits.

The beneficiary certificate issued by the fund indicates the investor's rights and interests in the investment fund.

Corporate funds: Corporate funds are established in accordance with company law and invest concentrated funds in various securities through the issuance of fund shares.

The organizational form of corporate investment funds is similar to that of a joint-stock company. The assets of the fund company are owned by investors (shareholders). The shareholders elect the board of directors, and the board of directors first appoints a fund manager, who is responsible for managing the fund business.

The establishment of corporate funds must be registered with the industrial and commercial administration department and the Securities and Exchange Commission, and must also be registered at the place where the stock is issued and traded.

The organizational structure of a corporate fund mainly includes the following parties: fund shareholders, fund companies, investment consultants or fund managers, fund custodians, fund conversion agents, and fund lead underwriters.

my country's current securities investment funds are all established as contractual funds.

Closed-end fund A closed-end fund means that the sponsor of the fund determines the total issuance amount in advance when establishing the fund. When more than 80% of the total amount is raised, the fund is declared established and closed, and no new investors will be accepted during the closed period.

invest.

For example, Kaiyuan (4688), a fund listed on the Shenzhen Stock Exchange, was established in 1998 with an issuance amount of 2 billion fund shares and a duration (closed period) of 15 years.