[b] fund category [/b]

1. Open-end fund

Refers to an investment fund whose scale is not fixed, but can issue new shares or be redeemed by investors at any time according to market supply and demand.

2. Closed-end funds

Refers to an investment fund whose fund size has been determined before issuance and fixed within a specified period after issuance.

3. Shrinking funds.

Investment funds are established by fund sponsors, fund managers and fund custodians in accordance with certain trust deed principles. The fund manager is responsible for the operation and management of the fund according to laws and regulations and fund contracts; The fund custodian is responsible for keeping the fund assets, executing the relevant instructions of the manager and handling the fund transactions under the name of the fund; Investors enjoy fund investment income by purchasing fund shares.

4. Corporate funds.

Investors with common investment objectives invest in specific objects (such as various securities and currencies) for the purpose of making profits according to the provisions of the Company Law, and form a joint-stock investment company. Fund holders are both fund investors and company shareholders.

5. Umbrella fund

Fund management companies regard a group of funds under their own names as "parent funds", and then form a number of "sub-funds" under the "parent funds" to facilitate and attract investors to choose and change freely. Its biggest feature is that it is beneficial for investors to switch funds, and it does not charge or charge less switching fees, thus stabilizing the investment team.

6. Fund's fund.

Its characteristic is to invest in other fund units. It further disperses and reduces risks by diversifying investments in its own funds or funds of different management groups.

7. hedge funds

The original meaning is "risk hedge fund", which originated in the United States in the early 1950s. The original intention of the operation is to avoid and resolve the risk of securities investment to some extent by using financial derivatives such as futures and options, as well as the operational skills of buying and selling related stocks and hedging risks. After decades of evolution, hedge funds have lost the original connotation of risk hedging and become an investment model that makes full use of the leverage effect of various financial derivatives, undertakes high risks and pursues high returns.

8. Venture capital

Refers to those funds raised by professional investment managers or institutions, which are invested in enterprises, technologies, products or markets in the early stage of starting a business in order to obtain high returns in the future.

9. Equity funds

Stock fund is an investment fund with stocks as the investment object, and it is the main type of investment fund. The main function of stock funds is to concentrate the small investments of mass investors into large funds. Investing in different stock portfolios is the main institutional investment in the stock market.

10, bond fund

Bond fund is a kind of securities investment fund with bonds as its investment object. It concentrates the funds of many investors, makes portfolio investment in bonds and seeks stable returns.

1 1, money market fund

Money market funds refer to funds that invest in short-term securities in the money market. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds and other short-term securities.

12, fund sponsor

Fund sponsors refer to the institutions that initiate the establishment of funds and play an important role in the process of fund establishment. In China, according to the Interim Measures for the Administration of Securities Investment Funds. The main sponsors of the fund are securities companies, trust and investment companies and fund management companies established in accordance with relevant state regulations, and the number of fund sponsors is more than 2. According to the Interim Measures for the Administration of Securities Investment Funds and the relevant provisions of the China Securities Regulatory Commission, the main responsibilities of fund sponsors include: (1) formulating relevant legal documents and submitting applications for the establishment of funds to the competent authorities, and preparing for the establishment of funds; (2) Subscribing for or holding a certain number of fund shares; (3) When the fund cannot be established, the fund sponsors shall bear the fund raising expenses and return the raised funds plus bank deposit interest to the fund subscribers within the specified time.

13, fund manager

A fund manager refers to an institution with special knowledge and experience, which uses the managed fund assets to make investment decisions according to laws and regulations, fund articles of association or fund contracts, and scientific portfolio principles, so as to continuously increase the value of the managed fund assets and enable fund holders to obtain as much income as possible. China's "Interim Measures for the Management of Securities Investment Funds" stipulates that the responsibilities of fund managers mainly include: investing and managing fund assets in accordance with the provisions of the fund contract; Pay the fund income to the fund holder in time and in full; Keep the accounting books of the fund for more than 15 years; Prepare the financial report of the fund, announce it in time, and report to the China Securities Regulatory Commission: calculate and announce the net asset value of the fund and the net asset value of each fund unit; Other duties stipulated in the fund contract: the manager of the open-end fund shall also handle the subscription and redemption of the fund in a timely and accurate manner in accordance with the relevant provisions of the state and the provisions of the fund contract.

14, gold custodian

The fund custodian shall open an independent bank deposit account for the fund and be responsible for the management of the account. That is, the fund custodian is also responsible for the receipt and payment of funds in the fund bank account and the transfer of funds. After the fund invests in securities, the fund custodian is responsible for the fund settlement of securities transactions. The fund custodian mainly has the following responsibilities: ① Safe custody of all fund assets; (2) execute the investment instructions of the fund manager; (3) Supervise the investment operation of the fund manager, and have the right to report to the securities regulatory agency if it is found that the fund manager has violated the rules. And urge the fund manager to correct it; ④ Check the net asset value of the fund calculated by the fund manager and the prepared financial statements.

Mergers and acquisitions

15, friendly acquisition

When the hunter company has reason to believe that the management of the prey company will agree to the merger, make friendly acquisition suggestions to the management of the prey company. A thorough goodwill acquisition proposal is made by the hunter company to the prey company in private and does not need to be publicly disclosed.

16. Hostile takeover

Regardless of the interests and difficulties of the board of directors and managers of the prey company, hunters directly launch bidding in the market without prior communication and little warning to induce the shareholders of the prey company to sell their shares.

17, tender offer

It refers to the acquisition method that the acquirer sends a written expression of intention to acquire the shares of the acquired company to shareholders, and acquires the shares of the target company according to the acquisition conditions, purchase price, acquisition period and other specific matters specified in the acquisition offer announced by the acquirer according to law.

18, leveraged buyout

Its essence is debt acquisition, that is, debt capital is the main financing tool, and these debt capitals are mostly raised with the assets of the prey company as the guarantee.

19, golden parachute

According to the golden landing agreement, once the directors, presidents and other senior managers are dismissed due to the merger and acquisition of the company, the company will provide quite generous dismissal fees, stock option income and extra allowances as compensation. This constitutes an obstacle to hostile takeover, which reduces the profit of the takeover or brings heavy cash payment burden to the acquirer.

20. Tin parachute

Generally speaking, when companies merge, ordinary employees are paid several weeks to several months according to their seniority. Tin landing units are small, but sometimes it can effectively prevent hostile takeovers.

2 1, white squire

The prey company sells a large number of voting securities to friendly companies, and signs an irrevocable agreement with friendly companies that act as white guards, which allows white guards to subscribe for shares at preferential prices or obtain higher return on investment when the prey company is acquired. To prevent hostile takeover.

22. The white knight.

When the prey company has no choice but to avoid the control of the hostile acquirer, it can find a friendly company, which will come forward to launch a bidding war with the hostile acquirer. This strategy can avoid the large-scale acquisition and anti-takeover war between the prey company and the hostile acquirer, but finding the receiver will eventually lead to the loss of independence of the prey company.

financial derivatives

23. Financial derivatives

Usually refers to financial instruments derived from the underlying assets. Because many financial derivatives transactions have no corresponding subjects on the balance sheet, they are also called "off-balance sheet transactions". According to the product form, it can be divided into four categories: forward, futures, options and swaps.

24. Swap contracts

A swap contract is a contract signed by two parties to an internal transaction to exchange certain assets with each other in a certain period of time in the future. He said, more accurately, the swap contract is a contract signed by both parties to exchange cash flows that they think are of equal economic value in a certain period in the future.

25. Option contract

After paying a certain amount of royalties to the seller, the buyer of the option obtains this right, that is, the right to sell or buy a certain number of subject matter (physical objects, securities or futures contracts) at a certain price (exercise price) within a certain period of time.

26. Futures contracts

Futures contract refers to the standardized contract made by the futures exchange to deliver a certain quantity and quality of physical or financial goods at a specific time and place in the future.

27. Commodity futures

Commodity futures refer to futures contracts with physical goods as the subject matter. Commodity futures have a long history and a wide variety, mainly including agricultural and sideline products, metal products and energy products.

28. Financial futures

Refers to futures contracts with financial instruments as the subject matter. As a kind of futures trading, financial futures has the general characteristics of futures trading, but compared with commodity futures, its contract subject matter is not physical goods, but traditional financial goods.

29. Interest rate futures

Interest rate futures refer to futures contracts with interest rates as the subject matter. Interest rate futures mainly include long-term interest rate futures with long-term treasury bonds as the subject matter and short-term interest rate futures with two-month short-term deposit rates as the subject matter.

30. Currency futures

Currency futures refer to futures contracts with exchange rate as the subject matter. Currency futures are produced to meet the needs of countries engaged in foreign trade and financial business, with the aim of avoiding exchange rate risks.

3 1, stock index futures

Stock index futures refer to futures contracts with stock indexes as the subject matter. Stock index futures do not involve the delivery of the stock itself, its price is calculated according to the stock index, and the contract is delivered in the form of cash settlement.

32. Option

Call option means that the option buyer has the right to buy a certain number of subject matter at the exercise price within the validity period of the option contract.

33. Put option

Put option means that the buyer of the option has the right to sell a certain number of the subject matter at the exercise price within the validity period of the option contract.

34. European options

European option refers to the option that can only be exercised on the expiration date of the contract.

35.american options

American option refers to any option that can be exercised within the validity period after trading.

36. Foreign exchange deposit transactions

Foreign exchange deposit transaction refers to a long-term foreign exchange transaction between financial institutions and between financial institutions and investors. At the time of trading, the trader can only pay a deposit of 1% ~ 10%, and then trade at the limit of 100%.

37. Futures margin

In the futures market, traders can pay a small amount of money according to a certain proportion of the price of futures contracts as financial guarantee for the performance of futures contracts and participate in the trading of futures contracts. This kind of money is the futures margin.

38, the daily mark-to-market system of futures trading

The daily mark-to-market system of futures trading refers to the settlement system in which the settlement department calculates and checks the balance of the margin account after the daily closing, and keeps the margin balance above a certain level by issuing a notice of additional margin in time to prevent debt. The specific implementation process is as follows: after the end of each trading day, the settlement department of the exchange calculates the settlement price of the day according to the trading situation of the whole day, and accordingly calculates the floating profit and loss of each member's position, and adjusts the available balance of the member's margin account. If the adjusted margin balance is lower than the maintenance margin, the exchange will issue a notice before the opening of the next trading day, requesting additional margin. If the member unit fails to add the margin on time, the transaction ownership will be forced to close the position.

39, futures positions, positions and positions

The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. An open contract after opening a position is called an open contract or an open contract, also known as a position. Before the end of the last trading day, choose the right time to sell the bought futures contract or buy back the sold futures contract, that is, write off the original futures contract through a futures transaction with the same amount and opposite direction, thus ending the futures transaction and relieving the obligation of physical delivery at maturity. This behavior of buying back a sold contract or selling a bought contract is called liquidation.

40, warehouse quota system

The position limit system is a system for futures exchanges to prevent excessive concentration of market risks on a few traders, prevent market manipulation and limit the number of positions held by members and customers.

4 1, large household declaration system

The big account reporting system is another system closely related to the position limit system, which is used to control trading risks and prevent big accounts from manipulating the midfield. After the futures exchange established the position limit system. When the speculative positions of members or customers reach the number specified by the exchange, they must report to the exchange. The application contents include customer account opening, transaction, source of funds, etc. Trading motives, etc. It is convenient for the exchange to examine whether there are excessive speculation and market manipulation behaviors and trading risks of large households.

42. Physical delivery of futures

Physical delivery refers to the behavior of the buyers and sellers of futures contracts to close the positions of the expired open contracts by transferring the ownership of the subject matter of futures contracts in accordance with the rules and procedures formulated by the exchange. Commodity futures trading generally adopts the way of physical delivery.

43. Cash delivery of futures

Cash delivery means that when futures contracts are closed at the end of the period, the profit and loss of open contracts are calculated at the settlement price, and futures contracts are finally settled by cash payment. This delivery method is mainly used for financial futures and other futures contracts that cannot be delivered in kind, such as stock index futures contracts. In recent years, some foreign exchanges are also exploring the use of cash delivery for commodity futures trading. China's commodity futures market does not allow cash delivery.

44. Interest rate ceiling

If the loan interest rate exceeds the prescribed upper limit interest rate, the provider of the interest rate ceiling contract will compensate the difference between the actual interest rate of the contract holder and the upper limit interest rate to ensure that the net interest rate actually paid by the contract holder does not exceed the upper limit stipulated in the contract.

45. Lower interest rate limit

If the loan interest rate drops to the lowest interest rate, the provider of the lowest interest rate contract will compensate the difference between the actual interest rate of the contract holder and the lowest interest rate to ensure that the net interest rate actually paid by the contract holder will not exceed the lowest interest rate stipulated in the contract.

Category of securities issuance

46. yankee bonds.

Foreign bonds issued in the US bond market, that is, bonds denominated in US dollars issued by governments, financial institutions, industrial and commercial enterprises and international organizations outside the United States in the US domestic market. Yankee bonds has the following characteristics: 1, long term and large amount. 2. The American government has strict control, and the application procedures are far more complicated than ordinary bonds. 3. Issuers are mainly foreign governments and international organizations. 4. Investors are mainly life insurance companies, savings banks and other institutions.

47. samurai bonds

Foreign bonds issued in the Japanese bond market, that is, bonds denominated in yen issued by governments, financial institutions, industrial and commercial enterprises and international organizations outside Japan in the Japanese domestic market. Samurai bonds are all unsecured, with a typical maturity of 3 ~ 10 years, and are generally traded on the Tokyo Stock Exchange.

48. Dragon bonds

Foreign bonds issued in currencies of Asian countries or regions other than Japanese yen. Dragon bond is the product of rapid economic growth in East Asia. Since 1992, dragon debt has developed rapidly. Its typical repayment period is 3-8 years. Dragon debt has higher credit requirements for issuers, generally the government and relevant institutions.

49. Blue chip stocks

The shares of large companies that occupy an important leading position in their respective industries, have excellent performance, are active in trading and have rich dividends are called blue chips. The word "blue chip" comes from western casinos. In western casinos, there are three colors of chips, of which blue chips are the most valuable.

red chip stocks

The concept of red chips was born in the Hong Kong stock market in the early 1990s. Hong Kong and international investors refer to those stocks with Chinese mainland concept registered overseas and listed in Hong Kong as red chips. The early red chips were mainly formed after some China companies acquired small and medium-sized listed companies in Hong Kong, such as CITIC Pacific. Later, red chips were mainly formed by the listing of some mainland provinces and cities in Hong Kong after the reorganization of window companies, such as "Beijing Holdings".

50. Depositary receipts

Refers to the negotiable instruments that represent the securities of foreign companies circulating in a country's securities market. Taking stocks as an example, depositary receipts are generated in this way: a listed company in a certain country entrusts a certain number of stocks to an intermediary institution (usually a bank, called a depositary bank) for safekeeping, and the depositary bank informs the foreign depositary bank to issue depositary receipts representing the stocks locally, and then the depositary receipts begin to be traded on foreign stock exchanges or over-the-counter markets.

5 1, transfer of rights

It is a unique product of China stock market. The holders of state-owned shares and legal person shares give up the rights issue and transfer the rights issue to other legal persons or the public with compensation. The new shares subscribed by these legal persons or the public when exercising the corresponding rights issue are called rights issue.

52. Guarantee

Issued by a listed company, giving investors with warrants the right to buy a certain number of shares of the company at a predetermined price at a certain time or period in the future. Its essence is a call option.

53. Covered warrants

It also gives the holder the right to buy a certain stock at a certain price, but unlike general warrants, covered warrants are issued by a third party other than listed companies, and the issuer is usually a reputable financial institution.

54. Blue chip stocks

Blue chip is the stock of outstanding companies, but there are different definitions of blue chip at home and abroad. In China, the main indicators for investors to measure blue-chip stocks are after-tax profit per share and return on net assets. Generally speaking, the after-tax profit per share is in the upper-middle position among all listed companies, and the stocks whose return on net assets has greatly exceeded 10% for three consecutive years after listing belong to blue-chip stocks.

55. Junk stocks

The junk stock index refers to the stocks of companies with poor performance. Some of these middle and upper-level companies even entered the ranks of losses because of poor industry prospects or poor management. Its stock performance in the market is sluggish, the stock price is sluggish, trading is inactive, and the year-end dividend is poor.

56.a shares

The official name of A shares is RMB common stock. It is common stock issued by me and domestic companies for domestic institutions, organizations or individuals (excluding investors from Taiwan, Hong Kong and Macao) to subscribe and trade in RMB.

57.b shares

The official name of B shares is RMB special shares, which are denominated in RMB, subscribed and traded in foreign currency, and listed and traded on domestic (Shanghai, Shenzhen) stock exchanges. Its investors are limited to foreign natural persons, legal persons and other organizations, natural persons, legal persons and other organizations in Hongkong, Macau and Taiwan Province Province, and China citizens who have settled abroad. Other investors as stipulated by China Securities Regulatory Commission.

58.h shares, N shares and S shares

H shares, that is, foreign shares registered in the mainland and listed in Hong Kong. The English of HOngKOng is Hong Kong, and the foreign shares listed in Hong Kong are called H shares. By analogy, new york's initials are N, Singapore's initials are S, and stocks listed in new york and Singapore are called N shares and S shares respectively.

59. State shares

State-owned stock indexes have the right to invest in the company with state-owned assets on behalf of departments or institutions that invest in the same family. Including the shares converted from the company's existing state-owned assets. Because most of China's joint-stock enterprises are restructured from the original large and medium-sized state-owned enterprises, state-owned shares account for a large proportion of the company's shares.

60. Corporate Unit

Corporate Stock Index Shares formed by legal persons, enterprises, institutions and social organizations investing their legally operated assets in the non-tradable shares of the Company.

6 1, social public shares

Social public shares refer to the shares formed by individuals and institutions in China who invest their legal property in the company's tradable shares.

62. Employee shares of the company

The employee shares of the company are the shares subscribed by the employees of the company at the issue price when the company issues shares to the public. In accordance with the Interim Regulations on the Administration of Stock Issuance and Trading. The share capital of the company's employee shares shall not exceed 10% of the total share capital to be issued to the public. The employee shares of a company can be listed and circulated six months after the company's shares are listed.

63. Internal Staff Unit

In the initial stage of the pilot joint-stock system in China, a number of joint-stock limited companies that do not publicly issue shares to the public but only raise shares for corporate legal persons and internal employees are called directional offering companies, and the shares issued by companies with internal employees as investors are called internal employee shares. 1993, the State Council officially issued a document, clearly stipulating to stop the approval and issuance of internal employee shares.

64. Shareholders' equity

Shareholders' equity, also known as net assets, refers to the remaining part of the company's total assets after deducting liabilities. Shareholders' equity includes the following five parts: first, capital stock, that is, capital stock calculated at face value. The second is capital reserve. Including the premium of stock issuance, the revaluation and appreciation of legal property, and the value of assets donated. The third is surplus reserve, which is divided into statutory surplus reserve and arbitrary surplus reserve. According to 10% of the company's after-tax profit, the statutory surplus reserve is forcibly withdrawn. The purpose is to deal with business risks. When the accumulated amount of statutory surplus reserve fund reaches 50% of the registered capital, it may not be withdrawn. The fourth is the statutory public welfare fund, which draws 5%- 10% from after-tax profits. Used for company welfare facilities expenditure. Fifth, undistributed profits refer to the profits reserved by the company for distribution or to be distributed in future years.

65. Shareholders' equity ratio

The ratio of shareholders' equity is the ratio of shareholders' equity to total assets. The proportion of shareholders' equity should be moderate. If the equity ratio is too small, it means that the enterprise is heavily in debt, which is easy to weaken the company's ability to resist external shocks, and the equity ratio is too large. It means that enterprises have not actively used financial leverage to expand their business scale.

66. Phnom Penh bonds

As early as the17th century, with the approval of Parliament, the British government began to issue government bonds with tax guarantee to pay principal and interest, which has high credibility. The British government bonds issued at that time had Phnom Penh, so they were called "Phnom Penh bonds". Phnom Penh bonds refer to all bonds issued by the central government, that is, national debt.

67. Local government bonds

In many countries, local governments and local institutions with fiscal revenue also issue bonds, which are local government bonds. Local government bonds are generally used for the construction of local public facilities such as transportation, communication, housing, education, hospitals and sewage treatment systems. Local government bonds are generally based on the tax capacity of local governments as a guarantee for repayment of principal and interest.

68, junk bonds

The investment interest is high (generally 4 percentage points higher than the national debt), the risk is high, and the protection of investors' umbrella funds is weak. Junk bonds originated in the United States and existed in the 1920s and 1930s. Before 1970s, junk bonds were mainly issued by some small companies to raise funds for business development. There are few buyers because the credit of this bond is in doubt. In the early 1970s, its circulation was less than $2 billion. Since the end of 1970s, junk bonds have gradually become the investment tools sought after by investors. In the mid-1980s, the junk bond market expanded rapidly and reached its peak. The early 1980s was a period of large-scale adjustment and reorganization of American industry. It is far from enough to rely on the stock market for the funds needed for renewal and merger. In addition, during the period of industrial adjustment, these enterprises are facing greater risks, and commercial banks aiming at profit cannot fully meet their capital needs, which is an important background for the timely rise of junk debt.

69. International bonds

International bonds refer to bonds denominated in foreign currencies issued by governments, financial institutions, industrial and commercial enterprises or international organizations in foreign financial markets to raise funds. An important feature of international bonds is that issuers and investors belong to different countries, and the funds raised come from foreign financial markets. Leaping bonds can be divided into foreign bonds and European bonds according to the currency and place of issue.

70.foreign bonds

Foreign bonds are bonds denominated in local currency issued by the government, financial institutions, industrial and commercial enterprises or international organizations of another country.

7 1, Eurobonds

Eurobonds are bonds issued by a country's government, financial institutions, industrial and commercial enterprises or international organizations in foreign bond markets with the face value of a third country's currency.

72. Certificate bonds

Voucher-type treasury bonds are savings bonds, a country, which can be registered to report the loss. The creditor's rights are recorded in "voucher-type treasury bonds receipts", which cannot be listed and circulated, and interest will accrue from the date of purchase.

73. Bearer (physical) bonds

Bearer (physical) treasury bonds are a kind of physical bonds, which record creditor's rights in the form of physical certificates, have different face values, are bearer, have no loss report, and can be listed and circulated.

74. Book-entry treasury bonds

Book-entry treasury bonds record creditor's rights in the form of accounting, issuance and trading through the trading system of the stock exchange, and can be registered for loss reporting.

75. Discounted national debt

Discounted national debt refers to the national debt without interest, which is issued at a price lower than the face value of the bond at a prescribed discount rate, and the principal and interest are paid at face value at maturity. Discounting the difference between the issue price of the same bond and its face value is the interest of the bond.

76. Interest-bearing government bonds

Interest-bearing national debt refers to a bond with coupon, which pays interest according to the interest rate and payment method specified on the face of the bond.

77. Corporate bonds

Corporate bonds, also known as corporate bonds, are bonds issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time.

78. Financial bonds

Financial bonds are bonds issued by banks and non-bank financial institutions.

79. Convertible corporate bonds

Convertible corporate bonds (convertible bonds for short) are bonds that can be used at a specific time. Special corporate bonds converted into common stock under certain conditions. Convertible bonds have the characteristics of both bonds and stocks.

80. Public sale of securities

Public offering refers to the issuer's extensive sale of securities to an unspecified public through intermediaries. In the case of public offering. All legal social investors can participate in the subscription.

8 1, private placement

Private placement, also known as private placement or internal issuance, is a way to issue securities to a few specific investors. There are roughly two kinds of private placement: one is individual investors, such as the old shareholders of the company or the employees of the issuer; The other type is institutional investors, such as large financial institutions or enterprises closely related to issuers. Private placement has a certain number of investors, and the issuance procedure is simple, which can save the issuance time and cost. The disadvantage of private placement is the limited number of investors and poor liquidity, which is not conducive to improving the issuer's social reputation.

82. Fair price

Parity issue, also known as equal issue or par issue, means that the issuer takes the par value as the issue price.

83. Premium issuance

Premium issue means that the issuer issues stocks or bonds at a price higher than the face value. Premium issuance can be divided into current price issuance and middle price issuance. Current price issue, also known as market price issue, refers to the determination of stock issue price based on the circulation price of the same or related stocks. The middle price issue refers to the issue of shares at a price between the face value and the current price. When a joint-stock company in China issues shares to its old shareholders. Basically, it is issued at the middle price.

84. Sell at a discount

Discount refers to the sale of new shares at a price lower than face value, that is, the issuance of shares after a certain discount at face value. In China, Article 131 of the Company Law of People's Republic of China (PRC) clearly stipulates: "The issue price of shares may be based on the par value, or it may exceed the par value, but it shall not be lower than the par value."

85. Insurance

When an issuer raises funds through the securities market, it needs to hire a securities business institution to help it sell securities. Securities institutions are unwilling to help their reputation and business outlets in the securities market and sell securities within the prescribed period of validity. This process is called underwriting. According to the different responsibilities and risks of securities institutions in the underwriting process, underwriting can be divided into two forms: consignment and underwriting.

86. Insurance

Underwriting means that the issuer signs a contract with the underwriting institution, and the underwriting institution buys all or the remaining securities and bears all the sales risks.

87. consignment sales

Consignment means that the securities issuer entrusts a securities operation institution (also called underwriting institution or underwriter) to sell securities to investors on its behalf. The lead underwriter shall issue the shares in accordance with the prescribed issuance conditions. Try your best to promote sales within the agreed time limit. If all the securities are not sold by the sales deadline, the unsold part will be returned to the issuer, and the underwriter will not bear any issuance risk.

88. Securities underwriting group

For securities with particularly large circulation, such as national debt or bulk stock issuance, underwriting institutions are often unwilling to bear the risk of issuance alone. At this time, an underwriting syndicate will be organized, and a number of institutions will jointly act as underwriters, thus reducing the risks borne by each underwriting institution alone. 1The Interim Regulations on the Administration of Stock Issuance and Trading issued by the State Council in April, 1993 stipulates: "If the par value of the shares to be publicly issued exceeds 30 million yuan or the estimated sales amount exceeds 50 million yuan, they shall be underwritten by the underwriting syndicate. The lead underwriter is determined by the issuer through bidding or negotiation in accordance with the principle of fair competition. "

89. Lead underwriter

The lead underwriter refers to the securities business institution that exclusively underwrites or leads the underwriting syndicate in stock issuance. Internationally, the lead underwriters are generally commercial banks (UK), investment banks (USA) and large securities companies with good reputation and strength.

90. List references

An issuing company must obtain the approval of one or two people when applying to the stock exchange for listing.