1, which have different summaries:

(1)ETF Overview: Transactional open-end index fund, commonly known as exchange-traded fund (ETF), is an open-end fund with variable fund shares listed on the exchange.

(2) Overview of the primary market: The primary market, also known as the issuance market or the primary market, is the market formed when the fund demanders sell securities to the public for the first time.

(3) Overview of the secondary market: The secondary market refers to the market formed by the trading and circulation of various securities among different investors after the issuance of securities, also known as the circulation market or the secondary market.

2. The relevant requirements of the three are different:

(1)ETF-related requirements: The stock exchange issued the Notice on Relevant Matters Concerning Exchange-traded Funds as Securities for Margin Trading, and accordingly adjusted the scope of exchange-traded open index funds as securities for Margin Trading. This notice came into effect on May 22nd, 20 12.

(2) Relevant requirements of the primary market: The primary stock market refers to the primary stock market, that is, the issuance market, where investors can subscribe for shares issued by the company. Issuers raise funds needed by the company through the primary market, and investors buy shares of the company and become shareholders of the company to realize the process of converting savings into capital.

(3) Requirements of the secondary market: the income from the sale of securities in the secondary market belongs to the investors who sell securities, not to the companies that issue securities.

3. The functions of the three are different:

(1) Functions of ETF: As an indexed product, ETF trading also provides investors with opportunities to invest in specific sectors, specific indexes, specific industries and even specific regions. Those industry-specific indexes will not only continue to reveal prices, but also be used as investment tools for investors.

Moreover, this kind of ETF without cash management can greatly improve the efficiency of fund assets, avoid the transaction cost and tax burden increased by constantly adjusting the portfolio in response to regular redemption, and help protect the long-term interests of fund investors.

(2) The role of the primary market: promoting the short-term idle funds to be converted into long-term construction funds; Adjust the supply and demand of funds, guide the flow of funds, and communicate the financing channels of savings and investment.

(3) The role of the secondary market: The secondary market provides liquidity for securities. Maintain the liquidity of securities, so that securities holders can sell their securities and realize them at any time. Because it provides a way for the realization of securities, the secondary market can also price securities to show the market price of securities to the holders.

Second, the trading method:

1, ETF trading method: investors can buy ETFs in two ways: they can buy from fund managers according to the net value of the fund on that day (the same as ordinary open-end funds), but the minimum subscription share of ETFs is usually relatively large, which makes it difficult for ordinary investors to buy in this way.

ETF can also be traded directly with other investors on the stock exchange. The trading process is similar to stock trading. The transaction price is determined by both buyers and sellers, which is often different from the net value of the fund at that time (like ordinary closed-end funds).

2. primary market transactions: the primary market is the issuance market of securities and does not participate in securities transactions.

3. Secondary market transactions: Both buyers and sellers participate in securities trading activities in the secondary market.

Baidu Encyclopedia-Trading Open Index Fund

Baidu encyclopedia-secondary market

Baidu encyclopedia-primary market