What is a stock exchange? Check it out now reputable stock exchanges and the largest in the Vietnamese market in the article below.
What is a stock exchange?
The stock exchange is where securities trading activities take place on the market, including the exchange, purchase, sale and transfer of certified stocks and bonds. In addition, the exchange also provides support services for stockbrokers.
Reputable stock exchanges The stock exchange creates a dynamic and rich stock market. In addition, it also acts as an intermediary for many other activities such as listing, issuing, and redeeming securities, paying profits and expenses, issuing debt or capital to investors, and paying dividends.
The role of reputable stock exchanges
If the securities transaction does not take place on reputable stock exchanges, investors will face many risks, because no one can guarantee that the transaction object is trustworthy. When there are no regulations or rules binding the participating parties, the risk of loss is entirely possible. Below are some important roles that only the exchange can perform.
Capital raising
The stock exchange is where investment money flows. People use their idle money to invest in companies to own their securities. This leads to a reasonable allocation of resources. Instead of mainly using money for living and consumption or saving, money will now be mobilized and used in business operations. Thanks to that, the development of the economy is promoted, achieving higher growth rates.
Create environment
Thanks to reputable stock exchanges, companies and organizations have been able to raise large amounts of capital, creating opportunities to expand, grow their businesses and increase their market share. Furthermore, organizations can easily carry out mergers and acquisitions through stock market deals. For this reason, most businesses in the market strive to meet the requirements to participate in the stock exchange.
Redistribution
The stock exchange plays an important role in reducing income inequality among investors. Becoming a member of the exchange gives you ownership of shares issued by the company, which increases the number of co-owners of the business, and therefore everyone has the opportunity to receive dividends from the organization's business activities. Whether you are a professional investor or a beginner, you share in the profits when the stock price increases.
Management cooperation
When organizations issue securities to the public, they accept that the business will be owned by more investors. This improves the efficiency of corporate management and creates the necessary tightness to ensure the benefits for investors as well as maintain the development of the organization. Therefore, the management cooperation between the company and shareholders becomes much more effective than private companies in the market.
Investment opportunity
On the stock market, investment opportunities are open to all members. Whether you are a large investor with a significant amount of capital or just a beginner with limited capital, there are still securities that suit your needs and personal strategies. You can invest in your favorite stocks and bonds or participate in intermediary financial funds. Although each person's income source will be different, you still have the opportunity to invest from reputable stock exchanges in Vietnam.
Project capital
The stock exchange is also a place where the government can raise and supplement capital for various large and small projects. Instead of applying high taxes to increase revenue for the budget, the government can adopt debt contracts on the stock exchange. reputable stock exchanges to obtain the necessary capital when the public purchases these contracts.
Economic measure
The price movements of securities on the stock exchange are an important indicator of the general trend of the economy. Most securities issued by companies are affected by market factors. If the price increases, it shows that the economy is stable. Conversely, if the price decreases, the market may be facing some challenges and concerns.
Top 3 reputable stock exchanges in Vietnam
In Vietnam, the increasing appearance of stock exchange makes investors feel uncertain about the quality and reputation when participating. In this article, let's explore with HVA Group the The most prestigious stock exchange in Vietnam so you can invest with confidence.
HoSE Stock Exchange
The Ho Chi Minh City Stock Exchange (also known as HoSE) was established in 2000. HoSE is under the State Securities Commission and is responsible for managing the listed securities trading system in Vietnam. This exchange has the stock code VN30, which is the most valuable stock index code on the market today.
All securities listed on the HoSE are very reputable, as they are issued by companies that meet the exchange's strict listing standards. In addition, with direct management from the state, investors can rest assured about the reputation and safety when participating in this exchange.
HNX Floor
This is reputable stock exchange in Vietnam, was established in 2009. The floor is responsible for organizing and managing the securities trading market. The HNX stock exchange has a very high reputation, with more than 73 participating member companies and does not specify the trading unit in negotiated transactions. Here, investors have many investment opportunities from products and services such as stocks, ETF certificates, derivatives and bonds.
Upcom floor
This is an online stock exchange where stocks, bonds and other securities that are not eligible for listing on the HoSE and HNX are traded. The Upcom exchange was established in 2009 and is managed by the Hanoi Stock Exchange. This is where stocks are transferred before being listed on the two exchanges above, so the number of securities traded is also very large.
With a minimum trading volume of 100 shares or bonds for matching transactions, the Upcom floor creates favorable conditions for investors to buy securities of companies. This floor is very popular not only with investors but also with businesses, because they can easily raise capital thanks to the listing regulations that are not too strict.
Above is the necessary information about reputable stock exchanges in VietnamThrough this article, HVA Group Hope you have grasped the role of the stock exchange and the top 3 exchanges. Choosing a large and reputable exchange will help investors feel more secure in trading and more confident when investing.
