The stock exchange is a highly organized securities trading market and the most important securities trading place.
1. The establishment and types of stock exchanges
Management in various countries generally adopts three types : The first is the franchise system, such as Japan; the second is the registration system, such as the United States; the third is the recognition system, such as the United Kingdom.
The stock exchanges established in various countries can be roughly divided into two legal types: membership system and corporate system: (1) Membership stock exchanges
It is voluntarily formed by various securities firms. Participants are members, and members jointly bear the costs of the exchange, such as the United States.(2) Corporate stock exchange
Generally adopts the organizational form of a joint-stock company, which is A for-profit legal person, that is, a stock exchange is organized and operated in the form of a company and is responsible for its own profits and losses, such as in Hong Kong.
2. Obtaining securities dealer qualifications
Investors cannot engage in securities trading directly, but should go through Securities dealers. One type is securities brokers, and the other type is securities dealers.
To obtain securities dealer qualifications, some countries (such as Japan) adopt a franchise system, and some countries (such as the United States) implement a registration system. Some countries (such as the United States) also require applicants to pass an examination before they can obtain securities dealer qualifications.
3. Conditions for securities listing
Not all publicly issued securities can enter the securities market For exchanges to be traded, the legislation of various countries stipulates that certain conditions must be met for the listing of securities. Different countries and different stock exchanges in the same country have different regulations on the specific conditions for the listing of securities.
** In addition to meeting certain conditions, a securities issuer must obtain approval from the securities management department and submit a prospectus to list securities on a specific stock exchange. Each country Legislation imposes continuous disclosure obligations on issuers.
Advantages and Disadvantages of Corporate Stock Exchanges
Corporate stock exchanges do not directly participate in the trading of securities and are in a It has a neutral status, so it helps ensure the fairness of transactions; at the same time, because its main responsibility is to provide various material conditions and services required by the stock exchange, its business activities are relatively simple, which is conducive to providing securities dealers with the most complete trading facilities possible. and services.
However, corporate stock exchanges also have certain shortcomings. Since the revenue of corporate stock exchanges mainly comes from the transaction volume of securities transactions between buyers and sellers, , the amount of securities trading volume is directly related to the interests of the exchange, thus making the stock exchange a third party independent of securities buyers and sellers. In order to increase revenue, the stock exchange may artificially promote certain securities trading activities, which is easy to form Securities speculation under the influence of stock exchanges affects the normal operation of the securities trading market. At the same time, some securities trading participants may transfer listed securities to avoid the expensive listing fees and commissions of corporate stock exchanges. Enter the OTC market to trade.
