Trading tools
Securities market activities must be realized with the help of certain tools or means, which are securities trading tools, that is, securities trading objects. Securities trading instruments mainly include government bonds (including central government bonds and local government bonds), financial bonds, corporate (enterprise) bonds, stocks, funds, and financial derivative securities.
stock exchange
There are two types of securities trading venues: the on-exchange market and the over-the-counter market. The OTC market refers to the securities trading activities carried out in the stock exchange, which is the normative organizational form of the securities trading venue; the OTC market refers to the securities trading activities outside the stock exchange, which includes the OTC market (also called the storefront trading market), the third market, the fourth market, and other forms.
Feature
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The securities market has the following three salient features:
First, the securities market is a place for direct exchange of value. Marketable securities are direct representations of value and are essentially just a direct representation of value. Although the objects of securities transactions are various securities, because they are the direct manifestation of value, the securities market is essentially a direct exchange place for value.
Second, the securities market is a place for the direct exchange of property rights. The transaction objects in the securities market are securities such as stocks, bonds, and investment fund certificates as certificates of economic rights and interests. They are only representatives of a certain amount of property rights. Therefore, they represent the ownership or claims of a certain amount of property and related Usufruct. The securities market is actually a direct exchange of property rights.
Third, the securities market is a place where risks are directly exchanged. Marketable securities are not only representatives of certain income rights, but also representatives of certain risks. The exchange of negotiable securities not only transfers a certain right of income but also transfers the unique risks of the negotiable securities. Therefore, from the perspective of risk, the securities market is also a direct exchange place for risks.
the difference
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The difference between the securities market and the general commodity market
The difference between the securities market and the general commodity market is mainly reflected in:
1. Transaction objects are different. The transaction objects of the general commodity market are various commodities with different use values that can meet certain specific needs of people. The trading objects in the securities market are securities such as stocks, bonds, and investment fund certificates that are economic equity certificates.
2. The purpose of the transaction is different. The purpose of securities trading is to realize investment income or to raise funds. The main purpose of purchasing goods is to meet certain consumption needs.
3. The price of the trading object is determined differently. The price of the commodity market, which is essentially the monetary expression of the commodity value, depends socially. The securities price in the securities market is essentially the division of profits, the market performance of expected returns, and is closely related to market interest rates.
4. Market risks are different. Because the general commodity market implements the principle of equivalent exchange, the price fluctuation is small, and the market prospect is more predictable, so the risk is small. However, the factors affecting the securities market are complex and changeable, the prices are volatile and unpredictable, and whether investors can obtain expected returns from their investment has greater uncertainty, so the risk is greater.