Ten thousand words summary: basic knowledge of financial market

Posted by BSkopnik on Fri, 18 Feb 2022 18:53:08 +0100


1, People's Bank of China
 2, China's multi-level capital market
 3, Securities Investor
 4, Business of securities companies
 5, Refinancing of securities finance companies
 6, Self regulatory organization
 7, Significance, objectives and principles of securities market supervision
 8, Definition, characteristics and classification of stocks
 9, Dividend policy, stock value
 10, Factors of stock price change, stock type
 11, Stock issuance system, recommendation and underwriting system
 12, Securities custody and depository, entrustment method, entrustment process
 13, Bidding, market maker, stock cost
 14, Shanghai Hong Kong stock connect, time value of money
 15, Bond nature and characteristics, international bonds, factors affecting national bonds
 16, Repurchase transaction, asset securitization
 17, Fund, open-end fund, closed-end fund, ETF,LOF
 18, Bond valuation model
 19, Fund parties, fund valuation, fund risk
 20, Financial derivatives, financial forward
 21, Futures, options
 22, Option type, convertible bond, exchangeable bond
 23, Risk classification, risk management method
 24, Stock trading rules, securities analysis methods, investment analysis steps

1, People's Bank of China

The main functions of the central bank:

Issuing bank
 Bank of the bank
 Government bank

Embodiment of the bank:

1,Concentrate the deposit reserve of commercial banks.
2,Act as lender of last resort in the banking industry.
3,Support the national inter-bank clearing business.
4,Preside over the foreign exchange position selling and covering business.

The embodiment of the government's Bank:

Acting as Treasury, issuing government bonds and financing for the government.

The central bank's three major policy instruments:

1,Deposit reserve policy: the interest rate of legal deposit reserve (the most violent instrument Policy) is reversed. Improve: tight monetary policy
2,Rediscount policy: money supply increases the financing cost of commercial banks in reverse. (main way) improve: tight monetary policy
3,Open market business: securities purchased by the central bank--Increase the money supply. Sale of securities--Reduce the money supply. (common)

2, China's multi-level capital market

By trading place, inside and outside the market:

Floor Market: National SME share transfer system, gem, SME board and main board.
Over the counter Market: regional equity trading market, private equity fund market, inter agency private equity product quotation and service system, brokerage counter market, etc.

Main board Market:

The main trading stock market. Shanghai: Code 600,601,603. Shenzhen: 000
 Shanghai Stock Exchange: December 19, 1990
 Shenzhen Stock Exchange: July 3, 1991
 Types of listed companies: large and mature enterprises: PetroChina, Sinopec, etc.
Status: macroeconomic barometer, the most important part of the capital market.

Small and medium-sized board:

Shenzhen Stock Exchange, agreed to set up time: May 2004. Modules erected under the main board
 Type of listed company: small and medium-sized enterprises with prominent main business and growth and scientific and technological content.

Main contents:
Two unchanged: 1. Comply with laws and regulations; 2. Meet the listing standards and information disclosure requirements of the main board market
 IV. independent: 1. Independent main board trading operation. 2. Independent supervision. 3. Stock code independent 002. 4. Exponential independence.


Shenzhen Stock Exchange. The second board market is not on the main board market. Official business hours: October 23, 2009.
Types of listed companies: entrepreneurial enterprises, small and medium-sized enterprises and high-tech enterprises.
Features: forward looking, high-risk, strict regulatory requirements, obvious high-tech industry orientation.

National SME share transfer system: new third board market. Listed transactions.

Listing conditions:

1,It is established according to law and has been in existence for more than 2 years.
2,The business is clear and has the ability of sustainable operation.
3,Sound corporate governance mechanism, legal and standardized operation, clear equity, etc.
2015 It was designated to enter the internal market in July.

Main board, small and medium-sized board, gem and new third board. These four are collectively referred to as the four board market.

OTC market:

Regional equity trading markets: such as Hefei, Tianjin, Shenyang, etc.
Private equity market
 Inter agency private placement product quotation and service system
 Brokerage counter market, etc

3, Securities Investor

By subject:

Individual investors
 institutional investor
 government organs
 financial institution


Qualified foreign investors meet the relevant provisions of China and obtain the quota approval of the State Administration of foreign exchange,
China's overseas fund management institutions, insurance companies, securities companies and other asset management institutions.
A single investor cannot hold more than 10 shares%,All investors 30%. Strategic investment is not limited.
Enterprise law human institutional investors
 Fund institutional investors

4, Business of securities companies

Securities companies are intermediaries. Securities issuance and services need to comply with the securities law and the company law and be approved by the Securities Regulatory Commission. Title: both China and Japan are securities companies. United States: investment bank. UK: merchant bank.

Nine businesses:

1,Securities brokerage business. Securities companies: target customers. Charge a certain percentage as commission.
2,Securities investment consulting business.
3,Financial advisory business related to securities trading and securities investment activities:
4,Securities underwriting and recommendation business: Securities Companies: promise to sell, guarantee and recommend listed transactions. Underwriting, full underwriting, balance underwriting, consignment,
5,Securities proprietary business. Self owned funds or funds raised by securities companies:
6,Securities asset management business: providing services to investors to maximize returns; Support single or multiple special purpose asset management businesses.
7,Margin trading.
8,IB business
9,Private investment fund business and alternative investment business. (originally direct investment business)

5, Refinancing of securities finance companies

The financing and securities lending business of securities companies to securities finance companies.

Securities finance company: it must be a joint stock limited company with a registered capital of 6 billion + paid in currency.

Special account for refinancing business:

1,Securities registration and clearing institution

Special securities account: special securities account for refinancing, guaranteed securities account for refinancing and securities settlement account for refinancing.

2,Commercial Banks:
Special fund account: special fund account for refinancing.

3,Securities registration and clearing institution
 Special fund account: refinancing guarantee fund account and refinancing fund settlement account.

6, Self regulatory organization

Securities market self regulatory organizations: 4.

1,stock exchange
2,Securities Industry Association
3,Securities registration and Clearing Company
4,Securities Investor Protection Fund

Stock Exchange:

1,Where there is land, that is, to provide a place.
2,If you have something, you provide equipment
3,Organization, i.e. supervising member transactions.

Organizational structure of stock exchange:

General assembly (supreme authority)
Council (decision-making body)
Supervisory committee
 general manager

Securities Association: combination of compulsory membership and voluntary membership.

Organization structure of Securities Association:

General assembly (supreme authority)
Council (decision-making body)
Supervisory committee
 Standing Council
 President's Office

Securities Depository and Clearing Company:

Rich: its own funds shall not be less than 200 million yuan.
Land: have necessary places and facilities.
Some people: the main managers and employees have professional qualification certificates.

Securities investor protection fund company:
Source of Securities Investor Protection Fund:

The risk fund of Shanghai and Shenzhen Stock Exchange reaches the specified upper limit, and the handling fee is 20%%Included in the fund.
For all securities companies registered in China, 0% of their operating income.5% - 5%Pay the fund.
Interest income from issuing stocks, convertible bonds, etc. and applying for frozen funds.
Recover income from relevant responsible parties and income from bankruptcy liquidation of securities companies.
Donations from institutions, organizations and individuals at home and abroad.
Other legal income.

7, Significance, objectives and principles of securities market supervision

Principles of securities market supervision:

1,Principle of legal supervision
2,Principle of fairness, impartiality and openness
3,Principle of protecting the interests of investors
4,The principle of combining supervision with self-discipline

Objectives of securities market supervision:

1,Use and give play to the positive role of the securities market mechanism and limit its negative role.
2,Protecting the interests of investors (the most important goal)
3,Prevent artificial manipulation and maintain the normal order of the securities market
4,Adjust and control the scale of securities market and securities trading according to the needs of national macroeconomic management
5,Guide investment direction

Means of securities market supervision:

1,Legal means (the strongest deterrent and shock)
2,economic means
3,administrative means

8, Definition, characteristics and classification of stocks

Stock is not only a part of the ownership of a joint-stock company, but also a certificate of ownership issued by the joint-stock company. It is a kind of securities issued by the joint-stock company to each shareholder as a certificate of shareholding in order to raise funds and obtain dividends and bonuses. Each share represents the basic ownership of the enterprise. Every listed company issues shares. Each share of the same class represents equal ownership of the company. The ownership share of the company owned by each shareholder depends on the proportion of the number of shares it holds in the total share capital of the company. Stock is a component of the capital of a joint-stock company, which can be transferred and traded. It is the main long-term credit tool in the capital market, but the company cannot be required to return its capital contribution.

The five characteristics of stock: shorthand pithy formula: participation in income and immortality.

Profitability (the most basic feature)

Stock classification: according to the rights enjoyed by shareholders: ordinary shares and special shares (preferred shares are only one type of special shares)

Ordinary shareholders: one share, one right, right to know, right to dispose, etc
 Special shareholders: no voting rights, super voting rights, different rights for the same share, gold shares (one vote veto, privatized state-owned enterprises).
Special stock representatives: Alibaba, jd.com, Baidu.

According to whether the names of shareholders are recorded or not: stock company name, stock certificate number

Registered shares: name, address, number of shares held by shareholders and date of acquisition. It's not easy to transfer and safer. It supports payment in installments
 Bearer shares: total number of shares, total amount, issue date. The transfer is convenient and the security is poor. It must be paid in a lump sum.

According to whether the amount is indicated on the face of the stock:

Shares with par value: it is convenient to make it clear that each share represents the proportion of equity and the par value
 No par stock: also known as proportional stock, which is convenient for stock segmentation. (relatively few, no par value shares are allowed to be issued in China)

9, Dividend policy, stock value

If the joint-stock company makes profits, as a shareholder, it can enjoy: that is, dividend policy

1,Cash distribution: the essence of cash distribution reduces the company's assets and shareholders' equity, resulting in cash outflow of the enterprise.
2,Share offering (original shareholder): the essence is that there is no change in the share and value of shareholders' equity in the company.
3,The shareholding ratio of capital reserve converted into share capital (income from share issuance premium, gifts received, appreciation of assets, and net assets of other companies accepted in merger) remains unchanged. What changes is that the company's registered capital and total share capital become more.

Four dates of dividend payment:

declaration date 
Equity registration date
 Distribution day
 Ex dividend and ex right date

Stock value:

Face value
 book value
 Liquidation value
 intrinsic value

Par value:

 If the price is higher than the nominal price at the time of issuance, it is called premium issuance, and other cases are parity issuance,
 Discount issue(**Discount issuance is not allowed in China**). If the issue premium,
 Will be put into the capital reserve account.

Book value:

Equal to net assets per share / Number of shares outstanding

Liquidation value:

Less than book value, bankruptcy liquidation

Intrinsic value:

The intrinsic value of a stock is the present value of its future earnings.
Stocks fluctuate around their intrinsic value.
The price is determined in the market.

10, Factors of stock price change, stock type

The factors affecting the change of stock price are: the first three are basic factors

1,The company's operating conditions: good operation is easy to rise, bad operation is easy to fall.
2,Industry and department factors: popular industries are easy to rise and sunset industries are easy to fall.
3,Macroeconomic and policy: economic prosperity, recession, depression, recovery, prosperity. Generally in line with the economic cycle.
4,Monetary policy: loose monetary policy>>rich>>More investment>>Stock rise; Tight monetary policy>>No money>>Less investment>>Stocks fell.
5,Fiscal policy: broad rise, tight fall.
6,Market interest rate: the market interest rate rises, there are more deposits in banks, and the stock price decreases.
7,Other factors: psychological factors, human manipulation, politics and force majeure (war, epidemic, disaster), policies and systems (price limit)

Stock type:

state share

Legal person status: legal person or social institution
 Social public shares
 Foreign shares: foreign and Hong Kong, Macao and Taiwan

Source of funds for the national unit:

1,The net assets owned by the existing state-owned enterprises reorganized into joint-stock companies.
2,Funds that have the right to invest on behalf of the state at this stage.
3,Funds of investment companies, asset management companies, economic entity head offices and other institutions authorized to represent the state.

Foreign shares:

domestically listed B shares in foreign currencies:  B Shares, RMB special stocks. Foreign capital subscription.
Overseas listed foreign shares: H Shares, listed in Hong Kong. L Shares: London. N Shares: New York shares. S Shares: Singapore.

11, Stock issuance system, recommendation and underwriting system

Stock issuance system:

1,Examination and approval system: government, administrative intervention, examination and approval color, low transparency, low degree of freedom and low efficiency.
2,Approval system: government and intermediary agencies. Emphasize regulatory audit and the current situation.
3,Registration system: Europe and America, relatively free. The intensity of post supervision can meet the requirements.

Sponsor system: sponsor > securities companies issue shares to listed companies.

1,Due diligence recommendation stage: review whether the credit is good and whether the business norms comply with various regulations.
2,Continuous supervision stage: instruction, supervision, guidance and guarantee.
3,Double guarantee requirements: mutual inspection between the sponsor and the sponsor.

Underwriting system: issuing securities on behalf of securities issuers

1,Underwriting: full underwriting and balance underwriting
2,Consignment: acting as an agent to sell bonds, and returning all unsold bonds to the issuing institution.

12, Securities custody and depository, entrustment method, entrustment process

1. Investors - > Securities Companies: investors entrust securities companies to help manage securities rights and interests affairs.

2. Securities companies - > securities registration and settlement institutions: keep investors' securities, hand over their own securities to securities registration and settlement companies, and help manage securities rights and interests affairs.

Entrustment method:

1,Counter entrustment: business hall
2,Non counter entrustment: Online entrustment; self-help; Telephone automatic entrustment; Fax and manual entrustment.

Entrustment process:

Issue application  --
Entrusted acceptance (verification and examination of documents, inspection of funds and securities)--
Entrusted execution (declaration principle: time first, customer first)--
Revocation of entrustment (it can be revoked if the transaction has been completed, and it can be revoked if it has not been successful)--
Transaction feedback (transaction report, cancellation feedback).

13, Bidding, market maker, stock cost

Principle of bidding:

1,The price that can realize the maximum trading volume;
2,The price of all transactions between the purchase order higher than the price and the sale order lower than the price;
3,The total transaction price of at least one buyer or seller with the same price.

Continuous bidding: matching one by one

1,Bidding principle 1: the highest buying order is the same as the lowest selling order, and the transaction is concluded at this price.
2,Bidding principle 2: when the purchase order price is higher than the immediately disclosed minimum selling order price, the immediately disclosed minimum selling order price shall be the transaction price. The lower you buy, the better.
3,Bidding principle 3: when the selling order price is lower than the immediately revealed maximum purchase order price, the immediately revealed maximum purchase order price shall be the transaction price. The more expensive you sell, the better.

Market maker system: the source of income is the price difference between buying and selling securities, according to its own securities or funds.

1,Strong financial strength
2,Ability to manage commodity inventory
3,Have accurate quotation ability, be familiar with their own goods, and have strong analysis ability.

Market maker:

It is a securities firm that connects buyers and sellers of securities. The purchase price and selling price are given by the market maker,
Conduct two-way quotation of securities according to the trading power of the market and its own situation

Share fee:

 Stamp duty (first given to the government in the Netherlands)

Commission: to securities companies
1,Commission: the commission charged by the broker to the client shall not be higher than 3% of the amount of securities‰
2,commission: A If the Commission for each transaction of shares is less than 5 yuan, it shall be charged at 5 yuan,
B If the Commission for each transaction of shares is less than US $1 or HK $5, it shall be charged at US $1 or HK $5.

Transfer of ownership: a transfer fee is required to provide stock transfer services. (to securities registration and clearing institutions)
1,Shanghai Stock Exchange: A The share transfer fee is 1% of the transaction face value‰,The starting point is 1 yuan,
B The settlement fee of the shares is 0% of the transaction amount.5‰

2,Shenzhen Stock Exchange: A The share transfer fee is included in the transaction handling fee and is not charged separately.
B The settlement fee of the shares is 0% of the transaction amount.5‰,Up to HK $500.

Stamp duty: 1 only for the transferor‰The tax rate shall be levied, and it shall not be levied on the transferee. (received from the seller)

14, Shanghai Hong Kong stock connect, time value of money

Shanghai Hong Kong stock connect: Shanghai Stock connect, Hong Kong stock connect. Opening time: November 17, 2014,

Also known as the Shanghai Hong Kong stock market trading interconnection mechanism.
Shanghai Stock connect: Hong Kong buys shares on the Shanghai stock exchange through the stock exchange:
Range>The constituent stocks of SSE 180 Index and SSE 380 index are listed on the Shanghai Stock ExchangeA+HShares.

Hong Kong stock connect: mainland investors buy Hong Kong stocks on the Shanghai Stock Exchange:

Range>Components of Hang Seng Composite large stock index,
The constituent stocks of Hang Seng Composite medium-sized index are also listed on the stock exchange and Shanghai Stock ExchangeA+Hthigh

Investment conditions of Shanghai Hong Kong stock connect: required by the Hong Kong Securities Regulatory Commission (at the initial stage of the pilot)

1,Institutional investors:
2,Individual investors: the sum of capital accounts and securities accounts shall not be less than 500000 yuan.

Time value of money:

100 -- 10% -- 1 year -- 2 year -- 100 year

present value PV interest rate i Number of periods n final value FV future value

Seeking simple interest: pv * (1+i*n) = fv
 Compound interest: pv * (1+i)n Power= fv
 Calculate the present value: simple interest discount: calculate the present value when the final value is known. fv / (1+i*n)
Calculate the present value: compound interest discount: calculate the present value when the final value is known. fv / (1+i)n Power

15, Bond nature and characteristics, international bonds, factors affecting national bonds

Nature of bonds:

1,Bonds are securities.
2,Bond is a kind of virtual capital.
3,Bonds are the performance of creditor's rights.

Characteristics of bonds:


Characteristics of international bonds:

1,Wide sources of funds and large issuance scale.
2,There is exchange rate risk.
3,It is guaranteed by national sovereignty.
4,Take the freely convertible currency as the measurement currency (US dollar, euro, Japanese yen, British pound, Swiss franc, etc.)

International Bond classification:

1,Foreign bonds: ABB,XX The country's face value is stated in US dollars in the United States. (Yankee bonds)
2,Foreign bonds: ABB,XX China's face value is marked in Japanese yen in Japan. (samurai bond)
3,Foreign bonds: ABB,XX The face value of China is indicated in RMB. (panda bond)
4,Eurobonds: ABC,China's face value is indicated in U.S. dollars in Britain.

Factors affecting the selling price of treasury bonds:

1,Market interest rate: reverse
2,The utilization level of comparable treasury bonds in the circulation market, that is, market competition: inverse ratio
3,The bid winning cost of underwriters underwriting treasury bonds: proportional
4,The fund recovery rate expected by the underwriter: inverse ratio
5,The handling fee income of bond underwriters is inversely proportional. 6. The cost of other bond distribution processes is directly proportional.
Primary distributor, secondary distributor,...

16, Repurchase transaction, asset securitization

Classification of repurchase transactions:

1,Pledge type Repurchase: movable property and rights. Short term financing business with bonds as pledge of rights
. The ownership has not been transferred, and the buyer has only the pledge.

2,Outright Repurchase: movable property and rights. Sell bonds to bond buyers
. When the ownership is transferred, the buyer has the ownership.

Sell first and then sell as the repurchase party. Buy first and sell later is the reverse repurchase party.

Asset Securitization: package the future income into securities for financing, referred to as ABS.

According to the classification of underlying assets:

1,Real estate securitization
2,accounts receivable securitization 
3,Credit Asset Securitization
4,Future income Securitization
5,Bond portfolio Securitization

According to the regional classification of Asset Securitization:

1,Domestic asset securitization
2,Offshore Asset Securitization

According to the attribute classification of asset securitization products:

1,Equity securitization
2,Debt Securitization
3,Hybrid Securitization

17, Fund, open-end fund, closed-end fund, ETF, LOF

Characteristics of the Fund: the manager and the trustee cannot be the same subject and restrict each other

1,Collective finance, professional management
2,Portfolio investment, risk diversification
3,Benefit sharing and risk sharing
4,Strict supervision and transparent information
5,Independent trusteeship to ensure safety

According to the operation mode:

1,Closed end Fund: it cannot be redeemed during the closed period.
2,Open end Fund: redeemable.

Main differences:

Different term
 Share restrictions vary
 Different trading places
 Different price formation methods
 Share NAV is published at different times
 Different transaction costs
 Different incentive and restraint mechanisms
 Different investment strategies

ETF: Trading open-end Index Fund

Exchange traded open-end index funds are also known as exchange traded funds
(Exchange Traded Fund,abbreviation ETF),It is a kind of that is listed and traded on the exchange
 An open-end fund with variable fund shares. First one ETF――SSE 50 ETF,Shanghai Stock Exchange will
 The SSE 50 index is authorized to be used by Huaxia Fund. Like closed-end funds, there is no stamp duty.
(Basket stock buying fund),There is a minimum share limit of 500000 copies and 1 million copies.

LOF Fund: the full English name is "Listed Open-Ended Fund", and the Chinese name is "Listed Open-end Fund"

Investors can purchase and redeem fund units at designated outlets,
The fund can also be traded on the exchange. (cash buy fund)

18, Bond valuation model

Bond valuation is the process of determining the Fair value of bonds. Like other capital investments, the fair price of a bond is the present value of its expected future cash flow. Therefore, the fair price of bonds is the present value of the expected cash flow of bonds discounted at an appropriate discount rate.

Present value = ∑ par value * coupon rate / (1 + yield to maturity) t + par value / (1 + yield to maturity) n

Valuation principle editor

The basic principle of discounted bond valuation is cash flow.

(1) Determination of bond cash flow

(2) Determination of bond discount rate

The discount rate of bonds is the minimum rate of return required by investors for the bonds, also known as the necessary rate of return:

Necessary rate of return of bonds = real risk-free interest rate + expected inflation rate + risk premium

19, Fund parties, fund valuation, fund risk

Fund parties include fund investors, fund managers and fund custodians

1,Fund Investor: fund unit holder
2,Fund manager: relationship with fund investors: fund contract, trustor, beneficiary and trustee
3,Fund custodian: and fund investor: custody contract, entrustment, entrustment

Total value of fund assets: - Fund liabilities = net value of fund assets.

1,negotiable securities
2,Deposit principal and interest
3,Subscription receivables

Net value of fund units: net value of fund assets / total fund units.

Fund valuation principles:

1,There is an active market: there is a market price, and the market price is adopted; No market value, recent market price, major changes, refer to similar varieties.
2,No active market: generally recognized and reliable valuation technology.
3,Negotiate with the custodian bank.

The fund cannot be valued:

1,The exchange is closed and cannot be valued
2,Force majeure, epidemic, war, etc., cannot be valued
3,The proportion of investment varieties is large, and significant changes have taken place, which cannot be valued
4,The manager believes that it is an emergency and cannot be valued
5,Other information recognized by the CSRC and the fund contract

Fund advantages:

1,Centralized funds
2,Professional management
3,Diversify investment and reduce risk

External risks of the Fund:

1,Systemic risk: market risk, policy risk,
2,Non systematic risk: credit risk, business risk

Internal risk of the Fund:

1,Qualified risk
2,Operational risk
3,Professional moral hazard
4,Management risk: management level, management means and management technology

20, Financial derivatives, financial forward

Similar to soybeans, tofu and soybean milk. Soybeans are basic products, and the basic products in the financial market are stocks, bonds and so on. Bean milk, bean curd derivatives,

Similar futures and options are derivatives. Financial derivatives are characterized by intertemporal, leverage, linkage, uncertainty and high risk.

Derivative financial assets are also called financial derivatives. Financial derivatives, also known as "financial derivatives", is a concept corresponding to the basic financial products. It refers to the derivative financial products based on the basic products or basic variables, and its price changes with the price (or value) of the basic financial products.

The basic product mentioned here is a relative concept, including not only spot financial products (such as bonds, stocks, bank time deposit certificates, etc.), but also financial derivatives. As the basis of financial derivatives, variables include interest rate, exchange rate, various price indexes, inflation rate and even weather (temperature) index

Financial derivatives can be classified according to the types of basic instruments, risk return characteristics and their own trading methods.

Financial derivatives can be classified according to the types of basic instruments, risk return characteristics and their own trading methods.

(1)According to the classification of product form, financial derivatives can be divided into independent derivatives and embedded derivatives.
(2)According to the classification of trading places, financial derivatives can be divided into exchange traded derivatives and OTC Derivatives traded.
(3)According to the classification of basic instruments, financial derivatives can be divided into equity derivatives, currency derivatives, interest rate derivatives, credit derivatives and other derivatives.
(4)According to the transaction methods and characteristics of financial derivatives, they can be divided into financial forward contracts, financial futures, financial options, financial swaps and structured financial derivatives.

In reality, two methods are usually used to classify derivatives.

(1)According to the product type, financial derivatives can be divided into four types: forward, futures, options and swaps.
(2)According to the nature of the original assets of derivatives, financial derivatives can be divided into stocks, interest rates, exchange rates and commodities.

Financial forward: financial forward contracts are the most basic financial derivatives. It is a contract between the two sides of the OTC market to buy and sell certain underlying financial assets on the agreed future date (delivery date) at the agreed price through negotiation in the OTC market.

21, Futures, options

Futures, whose English name is futures, is completely different from spot. Spot is actually tradable goods (commodities). Futures are not goods, but standardized tradable contracts based on certain mass products such as cotton, soybeans, oil and financial assets such as stocks and bonds. Therefore, the subject matter can be a commodity (such as gold, crude oil, agricultural products) or a financial instrument. The date of delivery of futures can be a week later, a month later, three months later, or even a year later. A contract or agreement for buying and selling futures is called a futures contract. The place where futures are traded is called the futures market. Investors can invest or speculate on futures. It belongs to the standardized trading of the floor exchange and is subject to strict supervision.

Products: cotton, soybean, petroleum, etc.

The difference between futures and ordinary financial forward:

1,The trading place is different from the trading organization form
2,Different degrees of transaction supervision
3,Different degrees of standardization
4,Margin system and daily settlement system lead to different default risks


Option refers to a contract, which originated in the American and European markets in the late 18th century. The contract gives the holder the right to buy or sell an asset at a fixed price on or before a specific date. The key points of option definition are as follows:


1,Option trading object is a kind of right
2,Option trading has a strong timeliness
3,Option supply and demand sides have asymmetric rights and obligations
4,Option investment has leverage effect
5,The purchaser of the option has the option.

22, Option type, convertible bond, exchangeable bond

According to the nature of options:

1,Call option: hope to buy, call right.
2,Put option: hope to sell, put option.

According to the performance time specified in the contract

1,European option: it can only be exercised on the maturity date
2,American option: it can be exercised on any business day before the expiration date.
3,Modified American option: within the specified date before the expiration date.

Convertible bonds: convertible bonds are bonds that the bondholders can convert the bonds into the company's common shares at the price agreed upon at the time of issuance.

Elements of convertible bonds:

1,Coupon rate or dividend rate
2,Limited term: 1-6 Year, conversion period: convertible within 6 months after issuance
3,Price: conversion ratio=Convertible bond % Conversion price
4,Terms of sale or redemption
5,Conversion price amendment clause

Convertible bonds have the characteristics of dual options: conversion or non conversion, redemption or non redemption.

Exchangeable bond

The exchangeable bonds issued by the major shareholder of company A are converted into the shares of another company, and the shares of another company held by the major shareholder.

Requirements: exchange requirements: Minimum 1 year and maximum 6 years. Reserve shares can be exchanged after 12 months after the issuance.

1,The applicant shall be a limited liability company or a joint stock limited company in accordance with the provisions of the company law and the securities law.
2,The company has sound organizational structure and good operation, and there are no major defects in its internal system.
3,The net assets of the company at the end of the last 1 period shall not be less than 300 million yuan
4,The average annual distributable interest of the company in the last three fiscal years is no less than one year of corporate bonds
5,The cumulative balance of corporate bonds after this issuance shall not exceed 40% of the net assets at the end of the most recent period%. 
6,The amount of bonds issued this time shall not exceed 70% of the market value of the shares to be exchanged calculated according to the average price of the 20 trading days before the announcement date of the prospectus%,
And the shares to be exchanged shall be set as the collateral of the corporate bonds issued this time.

7,After being rated by credit rating agencies, the bond has a good credit rating.
8,There are no circumstances under which corporate bonds may not be issued as stipulated in Article 8 of the pilot measures for the issuance of corporate bonds.

Differences between convertible bonds and interactive bonds:

1,Different issuers
2,The sources of shares used for share conversion are different
3,The impact of share conversion on the company's share capital is different

23, Risk classification, risk management method

According to whether the risk can be dispersed:

1,Systemic risk: macro direction
2,Non systematic risk: Micro direction, which can reduce certain risks through decentralized investment

According to the consequences of risk:

1,Pure risk: no benefit, disaster, epidemic, etc.
2,Speculative risk: may lose or earn

According to different risk factors:

1,Liquidity risk:
2,Market risk: market price, interest rate, commodity price, exchange rate, stock price, derivative price, etc
3,Credit risk: default, non payment of credit card, etc.
4,Operational risk: operational error, etc
5,Reputation risk: negative impact of events, etc.

Risk management method:

1,Risk prevention: audit, due diligence, etc
2,Risk aversion: give up or not take the initiative.
3,Risk diversification: diversification of investment
4,Risk hedging: Trading Strategies for hedging in the spot market and futures market.
5,Risk transfer: transfer to insurance. Non insurance transfer: guarantee, etc
6,Risk compensation: compensation by providing higher returns.

24, Stock trading rules, securities analysis methods, investment analysis steps

Stock is a shareholder's certificate issued by a joint stock limited company, which indicates that it has ownership of part of the capital of the joint stock company. It belongs to marketable securities and can be listed, circulated and transferred.

Netherlands: 1602, Amsterdam 417.
United States: 1790, Philadelphia, 229
 Domestic: 1993, Shanghai, 27 years.

Transaction time:

1. 9:30-11:30 a.m. and 13-15 p.m. from Monday to Friday (except legal holidays).

Trading unit: the trading unit of stock is: shares, 100 shares = 1 hand, and the number of entrusted purchases must be 100 shares or an integral multiple thereof.

Stock market trading rules:

Fluctuation system

Within a trading day, except for the securities listed on the first day, the rise and fall of the trading price of each stock relative to the closing price of the previous trading day shall not exceed 10%. An entrustment exceeding the rise and fall limit is an invalid entrustment.

T+1 transaction

T represents the transaction, and T+1 represents the second day of the transaction day.

T+1 trading system means that the securities bought by investors on the same day cannot be sold on the same day and can be sold only the next day.

A shares are T+1 and B shares are T+3

Main methods of securities analysis:

1,Fundamental analysis: focus on long-term analysis, prospectus and financial report. Dividend announcement, etc.
2,Technical analysis: trading volume and transaction price. Inflow and outflow.
3,Capital analysis: inflow and outflow.

Main steps of securities investment analysis

1,Collection and sorting of information
2,General trend study and judgment
3,Stock selection: industry, region, concept, growth and development.
4,Make operation plan
5,Determine the buying and selling time

Basic knowledge of technical analysis:

1,Basic elements of technical analysis
2,The biggest advantage of technical analysis
3,Main methods of technical analysis
4,Scope of application of technical analysis

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