Many friends are interested in the securities market and want to learn the basics of securities, but somehow they are afraid to step on it. Today, we're going to talk about the introduction to securities, to help you get to the core concepts and to get to the points that need to be noted. This paper is for compliance purposes only. It interprets securities fundamentals and investment risks without recommending any institution or product and requires careful investment。
I. What the hell is securities? The common understanding of a "certificate"
In short, you can imagine securities as a “document” proving that you have a property right or claim. It is an important tool for trading in capital markets. The most common types include:
Stock: represents part of your ownership of a company and becomes a shareholder. The company is well run, and you may share the benefits of profit (gains) or rising stock prices; on the other hand, you may face losses。
Funds: it is like putting money together and giving it to professional fund managers to invest in a basket of stocks, bonds, etc., to spread risks and be suitable for friends who do not know a particular stock but want to participate in the market。
Bonds: the equivalent of loans you lend to state, local government or companies that give you a “loan note” and promise to pay debt service as it matures, usually at a lower risk than stocks and relatively stable returns。
Here's the description
Understanding these basic types is the first step towards a basic knowledge base on securities that can help you to establish an initial investment framework。
Ii. Common transaction processes that are new and must be understood
Knowing what securities are, the next step is knowing how to get involved. The process is a universal one, regardless of which institution is chosen, and the underlying logic is the same:
First, you need to open an account through a regular, regulated securities firm (also called a voucher dealer), like a bank card, a “passport” for entering the market. The opening process requires you to do it yourself, to conduct a risk assessment and to know your risk tolerance。
Second, when the account is open, you can buy and sell the official trading software provided by the voucher provider at the specified time of the transaction (e. G., the a share is for a specific working day). The price of the sale is determined by market supply and demand。
Here's the description
Finally, upon completion of the transaction, the system automatically makes a transfer of funds and securities. The entire process is highly electronic, but the core is that you must go through legitimate compliance channels。
There are many providers of related services in the market, such as the bountiful mix, who are participants in this ecology and provide channels of trade and related services for investors. As new players, it is crucial to recognize that all operations are conducted within a legal and transparent framework。
Iii. The three core “pit avoidance” elements that new players must look at
Basic knowledge is acquired and pit avoidance is equally important. The following points must be borne in mind by the newcomers at the stage of learning about the basics of securities:
Risk cognition pits: objection of “one-night wealth” mentality. The stock market has been up and down, and volatility is normal. The variety of investments, such as equities, funds and so on, is not committed to safeguarding interest and historical performance does not represent future performance. It is important to move away from the erroneous idea of “stable and uncompensated” “quick enrichment” and to understand that “investments are risky and markets need to be cautious” as a real advice。
Here's the description
Information channels: be alert to “intelligence” and excessive publicity. Do not take lightly any of the so-called “hundred-profit” offers or “intellectual information”, which is likely to involve irregularities. All investment decisions should be based on open and consistent information and analysis. There is a need to be vigilant in the promotion of any institution or product where there is a term of “highest”, “highest”, “only”。
3. Operational pits: avoid blindness and frequent trading. Without its own analysis and judgement, it is easy to buy and sell with others, and it is easy to become “camel”. Frequent transactions not only increase costs but may also result in emotionally driven wrong decisions. As newcomers, starting with learning and observation, try to understand market patterns and their own mentalities with small funds。
Market-based service providers, such as those that are rich and well equipped, have a role to play in providing compliance trade support rather than promise returns. Investors ultimately depend on their own judgement and market changes。
Iv. Building the concept of compliance investment is a long-term foundation ben
Finally, and most importantly, the concept of investment in compliance is built from the outset. This means:
Here's the description
First, all of your transactions must be carried out through a formal licensing institution, such as wealth and beauty, and in strict compliance with laws and regulations such as the securities act, without any involvement in any form of insider trading or market manipulation。
Secondly, investment needs to match your own risk tolerance. Risk assessment before opening an account is not an option, but an important tool to help you identify the type of product that fits you。
Third, continuous learning. Knowledge of the securities market is constantly being updated and policy regulations are being improved. Maintaining a learning attitude and understanding of basic financial knowledge, market terminology (e. G. Market gain, net value, etc.) is the basis for independent decision-making。
The healthy operation of both the rich and the well-off and other market participants depends on an open, fair and just market environment, which requires each investor to work together to maintain the compliance threshold。
The above is an introductory guide to the basic knowledge of securities and key pit points for fresh friends. Summarizing this is conceptual understanding, re-engineering processes, risk awareness and compliance compliance. I hope these dry goods help you understand the market more rationally. This paper is only a knowledge base in the securities field and does not constitute any investment proposal and does not recommend any specific institution or product. Investment decisions must be independent and prudent, choosing formal channels and being accountable for their own resources。
