Legal analysis: With the development of economy and the improvement of people's consciousness, people no longer just keep their personal funds in the bank, but begin to look for various ways to reserve funds, such as bonds, stocks and investing in real estate. , so as to increase the value of their own funds to fight inflation or as a means of making a living. Entrusted stock trading between individuals has also quietly become a common social phenomenon. When making a profit, both parties are happy. When making a loss, both parties have disputes and it is inevitable to go to court. However, whether this entrustment contract for stock investment is valid or not, I think the consequences of entrustment behavior should be attributed to the client, and the loss stipulated in the entrustment agreement for stock trading should be borne by the trustee; Private lending lenders need to deliver loans to borrowers, but in the entrusted stock trading, the entrusting party only temporarily transferred the control of funds and did not lose the ownership of funds. Entrusted stock trading has some characteristics of well-known contracts such as principal-agent and private lending, but they are not exactly the same. It has the dual characteristics of financing and fund management, and belongs to anonymous contract. From a legal point of view, as long as the two parties have signed a contract agreement, and its contents do not conflict with the law, the contract agreement will be effective after being signed by both parties.

Legal basis: Article 502 of the Civil Code of People's Republic of China (PRC), a contract established according to law shall come into effect upon its establishment, unless otherwise stipulated by law or agreed by the parties.

In accordance with the provisions of laws and administrative regulations, if the contract should go through the approval procedures, such provisions shall prevail. If the failure to go through the formalities such as approval affects the effectiveness of the contract, it will not affect the performance of the obligation clauses such as approval and the effectiveness of relevant clauses in the contract. If the party that should go through the formalities for approval fails to perform its obligations, the other party may require it to bear the responsibility for violating its obligations.

The modification, assignment and dissolution of a contract shall be subject to the provisions of laws and administrative regulations, and the provisions of the preceding paragraph shall apply and shall be subject to approval.