Securities market

What is the securities market
SEC also said that the securities market circulation market, the secondary market (security secondary market), the secondary market is that the issue has been the sale of securities, transfer and circulation of the market. In the secondary market sales income securities belonging to sell securities investors, and not to distribute the securities company.
Securities and Exchange market in two forms

In some developed countries abroad, the Securities and Exchange market transactions at the market and the OTC market in two forms.
1, the transactions of the exchange market at the trading market 'refers to the organization by the Stock Exchange on trading markets, the transactions have a fixed place and time transactions, in most countries it is the only place of securities transactions, it is the most important, most concentrated securities market. Stock Exchange for acceptance and compliance with the relevant provisions of the Act listed for trading securities, investors through the Stock Exchange of Securities Dealers for securities trading.
Stock Exchange is not only buyers and sellers of publicly traded places, and provide a wide range of services for investors, the Stock Exchange to keep the investors listed on the Stock Exchange of securities transactions, such as transaction price, quantity, etc.; securities issued to provide financial enterprises announced , for investors. Stock Exchange to develop rules to participate in the transaction brokers and dealers strict management, supervision of securities trading activities to prevent market manipulation, insider trading, fraud, and other illegal and criminal activities. Stock Exchange to continuously improve the systems and facilities to ensure that normal trading activity continued, and efficient manner.
2, OTC market known as OTC market transactions or store counter trading market, the means of the Securities Exchange buyers and sellers face-to-face bargaining contract market, it did not have fixed places, the main use of the telephone transaction, the Securities and Exchange not listed in the securities based, in certain circumstances also listed on the Stock Exchange in OTC securities. OTC market in the securities of Securities Dealers both dealers and agents of double identity. As dealers, he can sell his holdings of securities customers or clients to buy the securities, and to make a bid; as agents, can be an agent, the identity of other dealers to buy securities sold . In recent years, some foreign OTC market has undergone significant changes, they used a large number of advanced electronic trading technology to enable the market to more extensive coverage, market efficiency has greatly improved. This regard, the United States and the Nasdaq market as typical examples.
The characteristics of the securities trading market

1, the securities to investors in securities trading places as the main participants, it is mainly holders of securities and the currency to buy the securities holders. In addition, the issuance of securities and securities intermediaries are also participants in the securities trading market, but its mandate is to support investors and the completion of the transaction, rather than an independent securities trading activities participants. As an exception, securities intermediaries may also act as investors.
2, the securities market has mainly taken the form of physical market, there are also a small number of invisible market.
Stock Exchange is a typical physical market, it has a fixed sites, facilities, equipment and professionals; other trading venues such as counter trading market, often in the form of a decentralized transactions, but in general securities companies must also rely on the counter and trading network to complete. this is the physical market is generalized. In accordance with the composition of the securities trading market and the existing form of securities trading, the market can be subdivided into Stock Exchange and the OTC market.
3, securities market and the issuance of securities market interdependence.
Securities market on the issuance of securities market-dependent, first of all, because the securities trading market for securities issued to trading partners, the Securities and Exchange market trading partners have been outstanding securities, but not yet issued securities. In this sense, the issuance of securities market is the premise of the securities trading market. On the other hand, China's current public offering of shares by the majority of the Stock Exchange's trading network, to "online distribution", which makes the issuer of the securities market also rely on market transactions. Issuance of securities markets and the relationship between the abnormal trading market complex, whether it is the types of securities issued by the price, quantity and size and other factors, are to a certain extent subject to the Securities and Exchange market conditions. China "Securities Act" allows the issuance of securities and the securities companies consultations pricing, resulting in the distribution market prices and trading market prices gradually aligned with the rest of the link between the two markets become more closely. It can be said that the issuance of securities markets and exchange markets between interactive role.
The functions of the securities trading market
First, to provide holders of the securities will be realisable securities place;
Second, the new investors investment opportunities. The market opened by the Stock Exchange and the Stock Exchange market securities companies set up by the OTC market. Various types of securities in the secondary market for the smooth flow is conducive to the formation of a fair and reasonable price, and the realization of monetary capital securities capital conversion.