|Foreign name||Parallel market|
|Effect||Securities trading, transfer and circulation|
- The secondary market refers to the market formed by the trading of various securities between different investors after the issuance of securities, also known as the circulation market or the secondary market. For example, the Shanghai Stock Exchange and the Shenzhen Stock Exchange belong to the secondary market. The income from the sale of securities in the secondary market belongs to the investor who sells the securities and not to the company that issued the securities.
- Secondary market
- The secondary market is a capital market that allows for the sale or purchase of financial securities that have been publicly issued or privately issued. In other words, the secondary market is the trading market for any old financial commodity that provides funding for the initial investor of financial commodities. Liquidity. Financial goods here can be stocks, bonds, mortgages, life insurance, etc.
- The secondary market exists after the new securities are issued, sometimes referred to as the "aftermarket". Once the newly issued securities are listed on the stock exchange, the market maker starts bidding and After the new securities are offered, investors and speculators can trade more easily.
- The stock market of each country is generally a secondary market. Compared with Western countries such as the United States, the secondary market for financial products such as mortgages and life insurance has not yet formed in China.
- See also: Primary market
- The stock exchange market is divided into two categories: one is large, active and orderly on-floor transactions, that is, transactions conducted on stock exchanges; the other is over-the-counter transactions without fixed locations, mostly on the telephone.
- Stocks are sold by issuers and publicly sold in stocks and reach the public investing in two different stages. Stock markets in capitalist countries
- In the primary securities market, there are new securities issued by enterprises and countries. The trading here is dominant. In the secondary securities market, there are two pre-issued or supplementary issued securities. In this market, The exchange plays a major role. The Securities and Exchange Commission stipulates that the broker who buys and sells stocks on the exchange must be a member of the exchange organization. The stocks traded on the exchange must be approved listed stocks because of the cost of trading stocks on the exchange. High, thus the listing of transactions by non-exchange member brokers outside the exchange trading channels. This stock exchange listed on the exchange, but in the OTC market trading market, known as the "third market." In addition, various investment companies, insurance companies, annuity funds, mutual savings associations and other professional financial institutions buy and hold stocks in large quantities, which has become a pivotal force in the stock exchange market. These large institutions and some giant companies are willing to pay high prices to buy exchanges. In order to more favorably engage in various stocks, bond trading activities, this way of stock trading has formed a singleThe market, known as the "fourth market."
- 1. The stock exchange is dominated by securities investors, which are mainly holders of securities and currency holders who are prepared to purchase securities. In addition, securities issuers and securities intermediaries are also participants in the stock exchange market, but The role is to assist investors in conducting and completing transactions, rather than independent participants in securities trading activities. As an exception, securities intermediaries may also act as investors.
- 2. The stock exchange market mainly adopts the form of tangible market, and there are also a few intangible markets.
- Stock exchanges are typical tangible markets with fixed locations, facilities, equipment and professionals; other stock exchanges, such as over-the-counter markets, often use decentralized transactions, but generally rely on securities company counters and trading networks. Completion, it is also a tangible market in a broad sense. According to the composition and existence of the stock exchange market, the stock exchange market can be subdivided into stock exchanges and over-the-counter markets.
- 3. The stock exchange market and the securities issuance market are interdependent.
- The dependence of the stock exchange market on the securities issuance market, first of all, because the stock exchange market uses the issued securities as the transaction object, and the securities exchange
- The secondary market is to provide liquidity for securities. Maintaining the liquidity of securities allows securities holders to sell their securities at any time and realize them. (For example, securities holders cannot always take their own hands. The realization of securities will result in unattended purchase of securities.) It is precisely because of the way to realize the realization of securities, the secondary market can also price the securities to show the securities market to the securities holders. price.
- China's new share issuance adopts an approval system. In the history of A shares, there are 8 IPO suspensions and 7 restarts. According to the latest research report of GF Securities, the historical data statistics and analysis are summarized as follows:
- (1) Before and after the IPO restart or suspension, the market mostly continues the trend before the change. The IPO is not the turning point of the market, but it is the accelerator of its rise or fall. Overall, the impact of the IPO restart on the Shanghai Composite Index is negative; IPO Pause is biased towards the front.
- (2) The IPO was suspended, and the impact on the GEM was basically the same. The small and medium-sized board index showed a 30% rise during the three suspension periods. Both restarts were in the bull market background and did not change the trend of continuing to rise.
- How big is the impact of IPO restart on IPO
- (1) Due to the current small and medium-sized board, the proportion of new shares in the GEM has increased significantly. The number of new shares applied for listing continues to increase, and the number of listed shares will continue to remain high. Analysts expect 20-30 homes/month.
- (2) The issued share capital is getting smaller, and the scale of single financing is getting smaller.
- (3) After the previous restarts, the market is generally sought after for new stocks. At the beginning, the rate of winning is low. After the new stocks are sufficient, they will gradually increase.
- (4) After the restart, the P/E ratio is initially higher, but it will continue to decline gradually, and is expected to remain around 20 times.
- (5) The first day after the restart, the increase was higher, but it should be alert to the risk of continuing to fall after listing in 2012.
- (1) Promote the conversion of short-term idle funds into long-term construction funds;
- (2) Adjusting the supply and demand of funds, guiding the flow of funds, and providing channels for direct financing of commerce;
- (3) The stock price changes in the secondary market can reflect the economic situation of the whole society;
- (4) Maintain reasonable prices of stocks, free trade, well-informed, and meticulous management to ensure that the interests of both buyers and sellers are strictly protected.
- Investors who need to enter the market should open a securities account card in advance. Open the Shenzhen Securities Account Card and the Shanghai Securities Account Card respectively.
- Shenzhen Securities Account Card
- Investor: You can apply through the local securities business department or securities registration agency. You need to provide your valid ID card and photocopy. If you entrust someone to do it, you need to provide the ID card and photocopy of the agent.
- Legal person: Hold business license (and photocopy), legal person power of attorney, legal representative certificate and manager ID card.
- Securities investment fund, insurance company: Opening an account card is required to go directly to the Shenzhen Stock Exchange.
- Account opening fee: 50 yuan per person / per account; agency 500 yuan / per account.
- Securities trading
- Shanghai Securities Account Card Investors: You can go to the Shanghai Securities Central Registration and Clearing Corporation at the account opening agency of each place to apply for the opening of a securities account, with valid ID documents and photocopies.
- Legal person: The original or copy of the legal person business license, or the original and photocopy of the legal person registration certificate issued by the civil affairs department and other competent departments; the legal representative's power of attorney and the valid identification of the manager and a copy of it.
- Entrusting others to do so: You must provide the agent's identification and a copy of it, and the client's power of attorney.
- Account opening fee: personal paper card 40 yuan, personal magnetic card local 40 yuan / each account, 70 yuan / each account; agency 400 yuan / each account.
Securities account opening
- After investors apply for the Shenzhen Stock Exchange account card, they must first open an account in the securities business department before going to the securities business department to buy and sell securities. The account opening is mainly at the business counter of the securities company's sales department or the designated bank to open an account, and then the securities can be bought and sold.
- Account opening procedure
- (1) The original and photocopy of the ID card must be provided for the personal account opening, and the original and copy of the Shenzhen Securities account card.
- If it is an agent, it is also necessary to sign the "Power of Attorney" with the client and provide the original and photocopy of the agent's ID card.
- Opening of the legal person institution: The business license and photocopy of the legal person shall be provided; the legal representative certificate; the original and photocopy of the securities account card; the original and copy of the legal person's power of attorney and the authorized person's ID card; Also need to provide overseas business registration certificate and director's certificate
- (2) Fill in the account opening information and sign the "Securities Sale Entrustment Contract" (or "Securities Entrustment Agreement") with the Securities Business Department, and sign the "Designated Transaction Agreement" for the Shanghai Stock Exchange.
- (3) The securities business department opens a fund account for investors
- (4) Investors who need to open the function of the bank transfer business of the securities business department, pay attention to the instructions of the securities business department regarding the use of such business functions.
- Choose a trading method
- While opening an account, investors need to choose the trading methods and access methods they use in the future, and sign the corresponding opening procedures and agreements with the securities business department. For example: telephone entrustment, online trading, mobile phone stock trading, bank transfer Wait.
- Opening the "Silver Pass" requires going to the bank to go through the relevant formalities.
- The account opening steps are as follows:
- 1. Bank outlets to open an account: Hold a valid ID card, the bank's same name savings passbook (if no, can be opened on the spot) and the Shenzhen and Shanghai shareholder code cards to the bank outlets that have opened the "Bank of China" business to open an account.
- 2. Fill in the form: Fill in the "Securities Entrustment Agreement" and the "Golden Securities Entrustment Agreement".
- 3. Set the password: After the form has been verified, enter the transaction password on the spot, and receive the agreement client. You can query and commission the transaction.
- The first step: with the valid identity document to the original foreign exchange deposit bank to transfer its cash deposits and foreign currency cash deposits to the securities firm in the same city, peer B-share margin account. Domestic commercial banks should issue credits to domestic residents. Single, and issue a statement to the securities institution;
- Step 2: Open a B-share fund account with the valid identity certificate and my account voucher to the securities institution, and the minimum amount for opening the B-share fund account is equivalent to US$1, 000;
- The third step: With the newly opened B-share fund account, apply to the securities trading institution to open a B-share stock account.
- Shenzhen B shares account
- As the legal registration agency of Shenzhen B shares, China Securities Depository and Clearing Corporation Shenzhen Branch is responsible for the B-share investor opening business. At the same time, it is authorized to some securities business departments, and some banks or other agent account opening accounts open B-share accounts. Current online real-time B The opening of the stock allows domestic and foreign agents and overseas agents to open accounts. Some securities business departments act as Shenzhen B-share account brokers, and can also act as agents for B-share accounts. Investors can go to the B-share business of Shenzhen Stock Exchange. Qualified securities business department, the account opening agency entrusted by Shenzhen Stock Exchange handles B-share securities account. Account opening:
- 1. Domestic individual investors are required to submit:
- (1) A voucher of foreign exchange funds with an amount of HK$7, 800 (equivalent to US$1, 000) and a copy thereof;
- (2) Domestic resident ID card and its copy.
- Note: Domestic individual investors must apply for B-share account opening personally, and may not be handled by others. Domestic legal persons are not allowed to open B-share accounts. Foreign individual investors may entrust others to act on their behalf, and each investor can only open one account.
- 2. Foreign individual investors are required to submit: Overseas ID card or passport, other valid ID documents and their photocopies.
- 3. A foreign institutional investor must provide: a business registration certificate, a power of attorney, a certificate of identity of the director and a copy of it, the identity document of the manager and a copy of it.
- Account opening fee: 120 Hong Kong dollars per household; institutional investors 580 Hong Kong dollars per household.
- Shanghai B-share account opening
- With the B-share fund account certificate, members of the Shanghai Stock Exchange who are qualified to operate B-shares in China apply to open a B-share stock account. When opening an account, you must submit:
- I have a valid identification document, a bank entry voucher of more than US$1, 000, an application form for the Shanghai B-share domestic resident account opening registration, and other materials that the Shanghai Stock Exchange and the registration company believe need to provide.
- Account opening fee: If a domestic resident individual opens a B-share stock account, the handling fee shall be paid according to the regulations. The handling fee shall be charged according to the standard of 19 USD/household.
- Securities Business Department B shares account
- The investor opens a B-share margin account in the securities business department of the securities company:
- Investors must provide the original and a copy of the following documents, and sign all relevant account opening documents, reserve a seal or password:
- (1) B-share shareholder account confirmation (ie B-share code card);
- (2) The valid identity certificate of the individual or the effective business license of the institution and the authorized agency letter signed by the legal representative of the institution and the identity document of the agent;
- (3) The head of the account opening account gives the agent a certificate of various authority;
- (4) The Shanghai Stock Exchange must handle the designated transaction.
- Once the issued shares are listed, they enter the secondary market. Investors buy and sell stocks according to their own judgments and needs. The transaction price is determined by the buyer and the seller. The price of the investors buying the shares on the same day is different. The secondary market is closely related to the primary market (primary market) and is interdependent and mutually constrained. The types of securities provided by the primary market and the types and types of securities issued by them determine the size of the securities in the secondary market. Structure and speed, while the secondary market, as a place for securities trading, plays an active role in promoting the primary market. The well-organized, well-managed, well-served secondary market distributes the securities issued in the primary market quickly and efficiently. Transfer, make it flow to other more needy, more appropriate investors, and provide real possibility for the realization of securities. In addition, the supply and demand situation and price level of securities in the secondary market will have a strong impact on the primary market. The issuance of securities. Therefore, without a secondary market, the issuance of securities is unlikely to proceed smoothly, and the primary market is unsustainable. It is even more impossible to expand the issuance.
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What Links Here
- Wang Chongrun. Financial Market Studies: Higher Education Press, 2014
- Impact of IPO restart on secondary market. . Date of reference 2014-02-07