Let's talk about what compound interest means first. Compound interest simply means that the principal generates income, your principal continues to generate income, and the income continues to generate income. For example, the net value of your fund is 1, and you bought 1 10,000 yuan. In the second year, the net fund value increased from 10% to 1. 1, and your 1 ten thousand yuan became 1. 1. In the third year, the net fund value increased from 10% to 1, and yours was 1. What if it's simple interest? Because your principal is only 10000 yuan, the annual income in the third year is still only 1000 yuan, and your principal and income will become1200,000 yuan in the third year, which is different from compound interest 1000 yuan. Your income can also generate income for you. This is called compound interest, which has been reflected in your net assets. Pure theory, some friends may be puzzled. Take China Merchants Zhongzheng Liquor as an example: 20 19, with an increase of 57.08 in the first quarter, 10.59% in the second quarter, 4.53% in the third quarter and 2.89% in the fourth quarter. If calculated by pure profit, it is 57.08%.

Stock trading is the buying and selling of stocks. There are two main forms of stock trading, one is to buy and sell stocks through the stock exchange, which is called floor trading; The other is to buy and sell stocks without going through the stock exchange, which is called OTC. Most stocks are bought and sold on the stock exchange, while over-the-counter trading is perfect only in the United States, and other countries either don't have it or are still in the initial stage. The main process of stock trading (floor trading) is as follows: (1) Opening an account. If customers want to buy or sell stocks, they should first open an account with a brokerage company. (2) Through instructions, after opening an account, customers can buy and sell stocks through their brokers. Every time a stock is bought or sold, the customer gives an order to the brokerage company, and the brokerage company quickly transmits the customer's order to its broker in the exchange, and the broker executes the order. (3) During the trading process, as soon as the brokers in the exchange receive the instructions, they will quickly go to the trading desk (trading hall) where the stocks are bought and sold to execute the instructions. (4) Delivery: After stock trading, the buyer pays cash to obtain the stock, and the seller hands over the stock to obtain the cash. Some delivery procedures are carried out after the transaction, and some are completed through clearing companies within a certain period of time, such as a few days to dozens of days. (5) After the transfer and delivery, the new shareholder shall go through the transfer formalities with the issuing company where he holds the shares, that is, register his name and the number of shares held in the company's register of shareholders. When this step is completed, the stock exchange is finally completed.

The first thing that new shareholders should do is to open a stock account (that is, a shareholder card) for themselves. A stock account is equivalent to a "bank account", and investors can only buy and sell securities by opening a stock account.

If you want to buy and sell stocks listed in Shanghai and Shenzhen, investors need to open stock accounts in Shanghai Stock Exchange and Shenzhen Stock Exchange respectively. The opening of Shanghai and Shenzhen A-share stock accounts must be handled by the securities registration company or its authorized account-opening agency.

There are many different kinds of stock accounts. Individual investors need to open A-share accounts if they want to buy and sell A-shares in Shanghai and Shenzhen stock markets.