I. Opening an account

Before buying and selling securities, investors should open an account with a securities broker, and only after opening an account can they be qualified to entrust a broker to buy and sell securities on their behalf.

when opening an account, both a securities account and a capital account should be opened. When investor A buys securities and investor B sells them, the securities will be transferred from investor B's securities account to investor A's account after the transaction, and the corresponding funds will be transferred from investor A's capital account to investor B's capital account after deducting the expenses.

(I) Securities account

A securities account is an account book set up by the securities registration authority for investors to accurately register the types, names, quantities and corresponding changes in rights and interests of securities held by investors.

China's securities accounts are divided into individual accounts and legal person accounts.

★ An individual must hold a valid certificate to open an account.

★ The documents provided by a legal person to open an account include: valid legal person certificate (business license) and its copy, legal representative certificate and its ID card, legal person power of attorney and agent ID card.

★ General securities accounts can only conduct spot transactions of A shares, funds and securities; For B-share trading and bond repurchase trading, it is necessary to open an account separately and handle related parties.

investors who want to invest in Shanghai and Shenzhen stock markets need to open securities accounts in Shanghai Stock Exchange and Shenzhen Stock Exchange respectively.

★ Shanghai securities account is opened at Shanghai Securities Central Depository and Clearing Corporation or its entrusted securities registration institution or securities operation institution;

★ Shenzhen account shall be opened by Shenzhen Securities Clearing Company or its authorized securities registration company or securities operation institution.

Securities accounts are used all over the country, and investors can entrust trading in any securities business department that has opened securities trading business in Shanghai or Shenzhen.

(II) Capital account

A capital account is a special fund account opened by an investor at a securities firm, which is used to deposit the funds needed by the investor to buy securities or the funds obtained by selling securities, and to record the currency, balance and changes of securities trading funds. A capital account is similar to a bank's current passbook. Investors can withdraw their deposits at any time and get interest on current deposits.

2. Entrusting

investors to buy and sell securities must be done through members of the stock exchange. When an investor entrusts a securities broker to buy or sell a certain kind of securities, he should sign an entrustment contract and fill in the basic information such as age, occupation, ID number, mailing address and telephone number. The power of attorney should also be clear about what kind of stock to buy and sell, what price, the quantity and time to buy and sell, etc. The final signature and seal will take effect.

according to the different contents of investors' entrustment, securities entrustment can be classified in different ways.

in terms of the number of securities bought and sold, there are integer entrustment and zero entrustment.

★ Integer entrustment means that the number of securities that investors entrust brokers to buy or sell is based on a trading unit or an integer multiple of a trading unit. A trading unit is called "first hand". The concept of "hand" comes from the initial stage of securities trading, and has now developed into a standard hand. For example, Shanghai and Shenzhen stock exchanges stipulate that the standard hand of A shares, B shares and funds is one hand for every 1 shares or 1, fund units; One bond is denominated in 1 yuan, and 1 bonds are denominated in 1 yuan.

★ Zero-share entrustment means that the number of securities entrusted for trading is less than one trading unit. If one hand is equal to 1 shares as a trading unit, then 1-99 shares are zero shares. Generally speaking, only when the transaction amount reaches an integer multiple of a trading unit or trading unit can it be traded in the exchange, and the odd shares can only be traded after the brokers have collected them into integer shares.

from the price of entrustment, there are market entrustment and limit entrustment.

★ Market entrustment means that when an investor sends an entrustment instruction to a broker, only the name and quantity of a certain security are specified, and the price is quoted by the broker without restriction.

★ Limit order refers to the price range for buying or selling a certain security when the investor issues an order. When the broker executes it, he must sell at or above the minimum price or buy at or below the maximum price.

from the way of entrustment, under the electronic transaction mode, it can be divided into counter delivery entrustment, telephone automatic entrustment, computer automatic entrustment and remote terminal entrustment.

★ The entrustment of delivering documents at the counter refers to that the investor holds the ID card and account card, and the investor fills in the power of attorney for buying or selling at the counter of the securities firm and submits it to the counter staff for examination and implementation.

★ Automatic entrustment by telephone means that investors dial by telephone through the automatic entrustment system at the counter of securities firms, and input entrustment instructions with the numbers and symbol keys on the telephone.

★ Automatic entrustment by computer means that investors personally give orders to buy or sell by using the over-the-counter computer entrustment terminal set up by the securities firm in the business hall or special account room.

★ remote terminal entrustment means that investors give orders to buy or sell through remote terminals connected to the computer system of the securities firm's counter or in parallel.

from the perspective of the validity period of entrustment, there are indefinite entrustment and fixed entrustment.

★ Unscheduled entrustment is also called effective entrustment, that is, the investor does not specify the effective period of the instruction when issuing the entrustment instruction, and the instruction remains valid as long as it is not announced to cancel the entrustment.

★ term entrustment, also known as time-limited entrustment, means that when an investor issues an order for entrusted trading, there is a certain limit on the trading time. If the time limit is exceeded, the order will automatically become invalid, regardless of whether the trading is completed or not. If investors are still interested in buying and selling, they need to re-submit the entrustment. The validity period in China's securities trading can be divided into two types: valid on the same day and valid within 5 days.

III. Bidding and Closing

After accepting the entrustment of investors, brokers will declare bidding according to the instructions of investors, and then make a final decision.

judging from the development of securities trading, there are several ways to declare bidding, such as oral bidding, board bidding, written bidding and computer bidding.

★ Oral bidding means that the floor traders shout out the price and quantity of the securities they buy and sell at the trading counter or in the designated area until the transaction is completed. At the same time, it is supplemented by gestures, indicating different numbers with finger movements, palm inward indicating buying and palm outward indicating selling.

★ board bidding means that both the buyer's bid and the seller's asking price are written on the trading board, and the broker bids through the board until the transaction is completed.

★ written bidding means that the floor traders fill in the trading requirements on the trading registration form and hand them over to the intermediary of the exchange, through which the transaction is made.

★ Bidding declaration by computer terminal means that the traders of securities companies input the buying and selling quotations into the computer mainframe of the exchange on the computer terminal, and then the computer mainframe matches the transaction. At present, this is the main bidding method adopted by stock exchanges all over the world.

so how is the transaction price determined? What are the principles for determining the transaction price?

At present, in all securities or securities derivatives markets in the world, the decision of transaction price is basically divided into continuous bidding and call auction according to whether the price is formed continuously, and the corresponding trading markets are divided into continuous market and collective market.

★ continuous market means that when investors of buyers and sellers continuously entrust to buy or sell securities, as long as they meet the transaction conditions, the transaction can take place at any time during the trading period, and the transaction price constantly changes according to the supply and demand of buyers and sellers.

★ The collective market refers to a bidding transaction after the investors of buyers and sellers have accumulated trading declarations for a long time. Most securities markets in the world use continuous bidding for most of the trading time.

continuous market can be divided into order-driven market and quotation-driven market according to the dominant market forces that form prices.

★ The main feature of the order-driven market is that the market price directly reflects the supply and demand of market investors. For example, the securities markets in Japan, South Korea, Singapore and Hong Kong are all order-driven markets, and the Shanghai and Shenzhen stock exchanges in China are also order-driven markets.

★ The main feature of quotation-driven market is that the market price directly reflects the number of market intermediaries, such as Nasdaq in the United States and London in the United Kingdom.

At present, call auction and continuous bidding are adopted in Shanghai and Shenzhen stock exchanges. From 9: 15 a.m. to 9: 25 a.m. on each trading day, the computer matching system will conduct call auction processing on all valid commissions received, and conduct continuous bidding processing on valid commissions in other trading hours.

★ call auction's price determination:

First, within the effective price range, select the price at which all effective consignments generate the largest turnover. If there are more than two such prices, the transaction price shall be selected according to the following rules: all valid consignments of buyers above the selected price and all valid consignments of sellers below the selected price can be completed, and all consignments with the same selected price must be completed. If there are still more than one price meeting the above requirements, select the price closest to the closing price of the previous day.

secondly, centralized matching processing is carried out. All buyers' valid consignments are arranged according to the order of consignment price limit from high to low, and those with the same price limit are arranged according to the time of entering the matching host. All the effective consignments of the entrusted sellers are arranged in the order of the consigned price limit from low to high, and those with the same price limit are arranged in the order of entering the match, that is, the transaction is made in the order of "price first, time first at the same price" until the transaction conditions are not met. All transactions are made at the same transaction price.

★ Price determination of continuous bidding:

After the call auction is over, the entrustment that failed to clinch a deal in call auction will automatically enter into continuous bidding. When entering an entrustment, if the transaction can be concluded, the bidding will be conducted according to the following rules for determining the transaction price; If you can't close the deal, wait for the party in the order of "price first, time first". For the effective entrustment that has entered the matching system, match one by one according to the following rules for determining the transaction price, until all the existing transactions in the system cannot be closed, that is, the existing orders reach a balanced state. Then deal with the new commissions entering the system one by one. This goes on and on until the market closes.

according to the following rules for determining the transaction price, select two valid commissions for bidding and matching. For a new incoming commission, select the lowest commission hawking order at the front of the queue. For a new sales order commission, select the highest effective commission at the front of the queue.

if the bid-asking limit is greater than or equal to the bid-asking limit, a new and latest transaction price can be won, resulting in a transaction. At this time, the rules for determining the transaction price are as follows: a new buyer is effectively entrusted, and if the transaction can be concluded, the transaction price is taken as the seller's asking price; Effective entrustment for a new seller. If the transaction can be concluded, the transaction price shall be the buyer's asking price. The buyers and sellers who can make a deal in this bidding will make a deal at the selected transaction price.

iv. clearing and delivery

the clearing and delivery of securities is the follow-up treatment after a securities transaction is concluded, and it is the process of price settlement and securities delivery. Clearing and delivery, collectively referred to as the settlement of securities, is a key link in securities trading, which is related to the settlement of the rights and responsibilities of both parties after the sale is reached, directly affects the smooth progress of the transaction, and is the basis and guarantee for the continuous market trading.

there are two ways to settle securities: one-by-one settlement and net settlement.

★ Transaction settlement refers to the settlement of securities and funds receivable and payable by the buyer and the seller once after each transaction is concluded, which can be carried out through a settlement institution or directly by the buyer and the seller, and is more suitable for the securities market and trading mode with a large number of transactions. For example, CEDEL International Settlement Center adopts this method.

★ Net settlement refers to the settlement of the transactions reached by the buyers and sellers within the agreed time limit, and the settlement is based on the net amount of funds and securities. This method is more suitable for the securities market and trading mode with scattered investors, frequent trading times and small trading volume. The net settlement usually needs to go through two settlements, that is, the first settlement is made between the clearing center of the stock exchange and the securities firm, which is called primary settlement; Then the settlement between the securities firm and the investor is called secondary settlement.

the timing of securities settlement varies in different stock exchanges due to their traditions and trading methods. At present, there are two kinds of settlement purpose arrangements.

★ First, the settlement on the accounting day means that all transactions occurring in a period are settled on the date specified by the exchange. If Belgium arranges the settlement according to the scheduled date of the exchange, the Austrian securities market will arrange the settlement on the following Monday, and the Indian securities market will arrange the settlement once a week.

★ The second is rolling settlement, which means that all trading arrangements and transactions are completed within a fixed number of days after the trading date, and this method is adopted in most countries' securities markets. Some regulations call it the T+l rule on the first business day after the transaction date, and some regulations call it the T+4 rule on the fourth business day after the transaction date, and so on.

as it is of great significance to complete the settlement as soon as possible to improve market efficiency and prevent settlement risks, it is the direction advocated by the international securities industry to adopt the rolling settlement method and shorten the settlement period, and finally realize the T+ settlement.

at present, China implements T+l settlement for A shares and T+3 settlement for B shares.

V. Transfer of shares

The so-called "paperless trading" has been implemented in China's stock exchanges. For the transfer of shares, the completion of settlement means the transfer of shares, and all the transfer procedures are completed by the computer automatic transfer system of the exchange at one time, without the need for investors to go through other transfer procedures.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ In Yinying Securities Laboratory, students can simulate the whole process of securities trading and truly experience the dribs and drabs of being securities investors. Let's take stock trading as an example to demonstrate the procedures of stock trading.

Opening an account

First of all, before trading, investors should choose a local securities business department to open an account, apply for a shareholder account card of the Shanghai and Shenzhen Stock Exchanges with their ID cards (the account opening fee requires 9 yuan), sign a designated trading power of attorney, get a fund account card, deposit a certain amount of money, and start online trading business if necessary, and then make all the preparations before trading.

(show your ID card, fill in the fund account, fill in the securities account, specify the power of attorney for trading, and make the power of attorney for online trading)

Next, entrust. The methods of entrustment are counter entrustment, telephone entrustment, self-service entrustment and online entrustment. Ordinary investors can go to the securities business department where they open an account for self-service entrustment by computer, and only need to use the shareholder account card and enter the trading password on the self-service entrustment terminal. Investors enter the short name of the stock to be bought or sold on the computer, such as Shanghai Pudong Development Bank, or the stock code, such as 6, enter the quantity and price of buying and selling, and the computer will automatically execute your entrustment instructions. In the process