Rich Dad’s Financial IQ Cultivation: Stock Fundamentals

Chapter 17 How to Trade Stocks (1)
((Section [-])) Account opening procedures for A shares and B shares

[-]. A-share stock account opening procedures

If investors need to enter the market, they should open a securities account card in advance.Open Shenzhen Securities Account Card and Securities Account Card respectively.

([-]) Apply for Shenzhen and Shanghai securities account cards
1. Shenzhen Securities Account Card

Individual investors: You can apply through the local securities business department or securities registration agency. You need to provide your valid ID card and a copy.

Legal person investors: apply with the business license (and a copy), legal person power of attorney, legal representative certificate and ID card of the person in charge.

Securities investment funds and insurance companies: To open an account card, you need to go directly to the Shenzhen Stock Exchange.

Account opening fee: Individual: 50 Shadow Account; Institution: 500 Shadow Account.

2. Shanghai Securities Account Card

Investors: You can go to the account opening agencies of Shanghai Securities Central Depository and Clearing Corporation in various places to go through the relevant procedures for applying for opening a securities account, and bring your valid ID card and photocopy.

Legal person: The original or photocopy of the business license of the legal person, or the original and photocopy of the legal person registration certificate issued by the civil affairs department or other competent departments; the power of attorney of the legal representative and the valid identity certificate of the person in charge and its photocopy.

Entrusting others to act as an agent: the identity certificate of the agent and its copy, and the power of attorney of the client are required.

([-]) Account opening by the securities business department

After applying for the Shenzhen and Shanghai securities account cards, investors need to open an account at the securities business department before going to the securities business department to buy and sell securities. The account opening is mainly at the business counter of the business department of the securities company or the designated bank account opening outlet, and then they can buy and sell securities.

1. The account opening procedure of the securities business department is as follows:
(1) To open an individual account, the original and copy of the ID card, and the original and copy of the Shenzhen and Shanghai securities account cards are required.

If it is an agent, it is also necessary to sign the "Power of Attorney" with the principal and provide the original and copy of the agent's ID card.

Account opening of a legal person institution: legal person business license and copy; legal representative certificate; original and copy of securities account card; legal person power of attorney and original and copy of authorized person's ID card: seal reserved by the unit. To open a B-share account, an overseas business registration certificate and director certification documents are also required.

(2) Fill in the account opening information, sign the "Securities Trading Entrustment Contract" (or "Securities Entrusted Transaction Agreement") with the securities business department, and sign the "Designated Transaction Agreement" related to the Shanghai Stock Exchange at the same time.

(3) The securities business department opens capital accounts for investors.

(4) Investors who need to activate the bank-securities transfer business function of the securities business department should pay attention to the instructions for using such business functions of the securities business department.

([-]) Operation process of online stock account opening

1. Customer account application

After the client opens a personal capital account, read and sign the "Online Securities Entrusted Trading Agreement" (in duplicate), and fill in two copies of the "Account Opening Application Form".If you have not opened a capital account, you must first open a capital account (see the operation process for opening an account above).

2. Verification
Customers need to provide their own securities account, an original ID card and a copy of each. If there is an entrusted agent, the entrusted agent must also provide an ID card and a copy.

3. Account opening process

For customers who meet the account opening requirements, the account opening staff at the counter will issue the CA certificate for online transactions to the customer (the customer should pay attention to changing the password in time), and ask the customer to sign on the "Customer Account Opening Receipt".

([-]) Entrusted account opening procedures by telephone

It is very convenient to entrust transactions by telephone, and the procedures for opening an account by telephone entrustment:
Step [-]: Shareholders bring their ID card and securities account book and go to the counter of the securities business department they have selected to go through the account opening procedures. Generally, securities business departments have special counters for telephone entrustment.

Step [-]: Get the application form for opening a telephone entrusted account at the counter, fill in the relevant personal information, then sign the two telephone entrustment agreements given to you by the brokerage, and submit the copies of the documents and materials. You have completed the whole process of opening a telephone entrusted account with your own certificate, a copy of the "Telephone Entrusted Transaction Agreement" and the operation manual.

[-]. B share account opening procedures

([-]) The procedures for opening a B-share stock account are mainly divided into the following three steps:
Step [-]: Go to the original foreign exchange deposit bank with my valid identity documents to transfer the cash deposits and foreign currency cash deposits to the B-share margin account of the government merchant in the same city and peers. Account statement, and issue a statement of account to the securities business institution;
Step 1000: Open a B-share fund account at a securities business institution with the person's valid identity certificate and the deposit voucher. The minimum amount for opening a B-share fund account is equivalent to US$[-];

Step [-]: With the newly opened B-share capital account, go to the securities business institution to apply for opening a B-share stock account.

([-]) Precautions for B-share account opening
1. Shanghai stock market B-share account opening

1. With the B-share capital account certificate, apply for opening a B-share stock account at a member of the Shanghai Stock Exchange who is qualified to operate B-shares in China.When opening an account, you need to submit:

My valid identity document, bank receipt certificate of more than 1000 US dollars, "Shanghai B-Share Jinggang Individual Account Opening Registration Application Form" and other materials deemed necessary by the Shanghai Stock Exchange and the registration company.

Account opening fee: Domestic residents who open a B-share stock account should pay a handling fee according to the regulations, and the handling fee is charged at the rate of US$19 per account.

2. B-share account opening of the securities business department

Investors open a B-share margin account at the securities business department of a securities company:

Investors must provide the original and a photocopy of the following documents, and sign all relevant account opening documents, and reserve a seal or password:
(1) B-share shareholder account confirmation letter (i.e. B-share code card);
(2) Individual's valid identity certificate or institution's valid business license, agency authorization letter from the institution's legal representative office and the agent's identity certificate;
(3) The head of the account who opened the account as an agent grants the agent various authority notarization certificates.

(4) The Shanghai Stock Exchange needs to handle designated transactions.

3. Shenzhen B-share account opening

China Securities Depository and Clearing Corporation Shenzhen Branch, as the legal registration institution of Shenzhen B shares, is responsible for the account opening business of B share investors.At the same time, it is authorized to some securities business departments, some banks or other agents to open accounts and open B-share accounts.At present, online real-time B-share account opening allows domestic and foreign individuals, overseas agents, and overseas general legal persons to open accounts. Some securities branches, as agents for Shenzhen B-share account opening securities firms, can also handle B-share account opening business on behalf of them.Investors can go to the securities business department qualified to engage in B-share business of Shenzhen Stock Exchange or the account opening agency entrusted by Shenzhen Stock Exchange to apply for a B-share securities account.Account opening:
4. Domestic individual investors need to submit
(1) The receipt of foreign exchange funds with an amount above 7800 Hong Kong dollars (equivalent to 100 U.S. dollars) and its copy;

(2) Domestic resident ID card and its photocopy.

Note: Domestic individual investors must personally handle B-share account opening, and no other person is allowed to handle it. Domestic legal persons are allowed to handle B-share account opening, and overseas individual investors can entrust others to do it on their behalf. Each investor can only open one account.

5. Overseas individual investors need to submit
Overseas resident ID card or other valid ID card and its photocopy.

6. To open a B-share securities account, foreign institutional investors need to provide: business registration certificate, power of attorney, director's province certificate and its copy, and the handling person's identity card and its copy.

Account opening fee: HK$120 per account for individuals; HK$580 per account for institutional investors.

To open a B-share account, investors themselves should first meet the qualifications and conditions stipulated by the securities management department.

According to the relevant regulations of the China Securities Regulatory Commission, B-share investors are limited to:
(1) Foreign natural persons, legal persons, and other organizations;

(2) Natural persons, legal persons and other organizations in Taiwan, Hong Kong and Macao;

(3) Chinese citizens residing overseas;

(4) Domestic resident individuals;
(5) Other investors specified by the China Securities Regulatory Commission.

(Section [-]) Stock Account Opening Management

[-]. The process of modifying the account opening information in the sales department
Due to the change of personal information, investors sometimes need to modify the account opening information, and go through the procedures for modifying the account opening information. The business process that the securities business department handles when the investor proposes to modify the account opening information:
([-]) Investors provide shareholder ID card, shareholder code card, account opening application letter and investor link.

([-]) Investors need to visit the counter to modify relevant information. If they are agents, they also need to issue the agent's ID card and power of attorney.

([-]) The investor fills in the "Application for Changing the Password of the Trading Account" and the "Form for Changes in the Information of the Investor's Account".

([-]) After the salesperson checks and confirms that there is no error, enter the shareholder code to modify.

[-]. How to handle stock inheritance and transfer procedures
Stocks, as personal financial assets, can have the right of inheritance and the right to be inherited. Inheriting stocks must first go through the notarization of stock inheritance, and you can submit a written application to the notary office of the local government where the party is located. Go through the relevant procedures.Then the heir will carry out the transfer procedures with the notarial certificate, ID card, shareholder account of the heir and the decedent. If the heir is under the legal age, the inherited shares will be transferred to the stock account of the notarized legal guardian.

[-]. How to ensure the security of the stock account

The misappropriation of a stock account should depend on the degree of economic loss. If it is too large, you can report the case to the judiciary according to the law and try to file a case for investigation. If it is not too large, you can investigate with the securities company and negotiate a solution. sue.In order to effectively prevent the occurrence of stock account theft, both investors and brokerages should increase their legal awareness of risks. As investors, they should keep their transaction information including passwords confidential, and can take designated transactions to prevent them.As a securities firm, staff should be required to strictly follow trading procedures and disciplines.Especially when cash is withdrawn from other places, strict checks must be made, and various documents must be checked in detail to prevent criminals from taking advantage of it.

[-]. How to check stock account
Anyone who holds a valid certificate and stock account card can go to the business department of the securities company where you opened the account or designated for trading to check the stock balance and dividends. If the query results are inconsistent with the actual situation, you can make further inquiries with the delivery note or receipt Transaction Record.Check the type and quantity of stocks, and charge 1 yuan for each type.If you do not know the type and quantity of stocks, you can write the words "check the balance of all existing stocks" in the remarks of the inquiry form.On the basis of the original fee, an additional 5 yuan is charged for procedures, and 5 yuan per page is charged for querying transaction records.

If you still have doubts about the transaction status, especially those with a relatively long transaction date, you can go to the Securities Central Depository and Clearing Corporation for further inquiries.

[-]. How to report the loss of the stock account card

Once the stock account card is lost, you must go to the business department of the securities company and apply to the securities company through them to report the loss of the stock account.When reporting the loss, you must bring your ID card. If the ID card is lost, you can take the work permit and household registration booklet or the certificate of ID card loss issued by the police station of the Public Security Bureau (the certificate must be affixed with your photo and the seam seal stamped by the police station of the Public Security Bureau) to handle The general fee for reporting the loss is 1 yuan.

[-]. Brokers enter the custody period, how do customers transfer accounts
First of all, in the legal sense, the relationship between the client and the securities firm is a principal-agent relationship. Unless the entrusted transaction contract clearly imposes restrictions on the transfer of accounts, it is a legitimate and legal right for the client to request the transfer of accounts, and the securities firm should handle it in a timely manner.

Under certain circumstances, for securities firms that have been disposed of (suspended for rectification, managed under custody, or canceled), especially for securities firms that have misappropriated customer deposits, after the regulatory agency takes disposal measures, in order to maintain financial stability and ensure the smoothness of the disposal work If the transfer is not carried out, there will be situations where the relevant departments impose clear restrictions or prohibitions on the transfer.Under such circumstances, the civil subject qualification of the disposed securities firm as the trustee no longer exists, and the client's request for account transfer cannot be realized temporarily.

At this stage, according to the "Opinions on the Acquisition of Personal Creditor's Rights and Client Securities Transaction Settlement Funds" jointly issued by relevant ministries and commissions in October 2004, the state has clear regulations on the disposal of client transaction settlement funds and other related creditor's rights. Investors will not suffer losses due to the disposal of securities companies, and as long as the trading seats of the escrowed securities companies are not revoked, it will not affect investors' normal transactions.

The basic system of my country's securities market is still under exploration and construction. In order to prevent financial risks, the new "Securities Law" has stipulated the establishment of a securities investor protection fund system and a third-party depository system for customers' securities transaction settlement funds. Fundamentally put an end to the misappropriation of client funds by securities companies, and provide institutional protection for the interests of investors.Currently, the China Securities Regulatory Commission is gradually implementing a classified regulatory system for securities firms, which is also conducive to investors choosing better quality securities firms in entrusted transactions.

For investors, as long as they do not participate in illegal transactions, even if the entrusted brokerage company has special circumstances such as custody, there is no need to worry that their legitimate rights and interests may be damaged.It is worth noting that after the implementation of the new "Securities Law", the risk management methods of my country's securities companies will become more market-oriented.Investors should establish a correct concept of risk, and carefully choose brokers who entrust transactions based on the principles of safety and efficiency.

(Section [-]) Several common entrustment methods in my country
In the entrusted transaction mode, various entrusted methods can be made according to the entrusted content and entrusted requirements.At present, the main entrustment methods in my country are:
[-]. According to the price conditions entrusted by the client

1. Commissioned by the city.That is to say, in the price conditions of entrusting a securities firm to buy and sell stocks, the principal clearly states that the purchase and sale can follow the market.That is to say, securities firms can decide to buy or sell stocks according to changes in market prices when accepting transactions entrusted with the market, that is, sell at the highest point and buy at the lowest point.Most of the orders are follow-the-market orders.

2. Price entrustment.In the process of entrusting a securities firm to act as an agent for stock trading, the consignor determines the highest price for buying stocks and the lowest price for selling stocks, and the securities firm buys stocks below the limited price for buying stocks, and buys stocks above the limited price for selling stocks. sell.

[-]. Divided according to the form entrusted by the client

1. Face-to-face entrustment.That is, the consignor entrusts a securities firm face-to-face to determine the specific entrustment content and requirements, and the securities firm accepts the sale and purchase of stocks.

2. Entrust.That is to say, the consignor entrusts a securities firm by telephone to determine the specific entrustment content and requirements, and the securities firm and broker accept the trading of stocks.

3. Pass the commission.That is, the consignor transmits the power to the securities firm to determine the specific entrustment content and requirements, and entrusts the securities firm to act as an agent to buy and sell stocks.

4. True entrustment.That is to say, the client faxes the confirmed entrustment content and requirements to the securities firm in the form of fax, and entrusts them to act as an agent for buying and selling stocks.

5. Letter of entrustment.That is to say, the consignor informs the securities firm of the determined entrustment content and requirements in the form of a letter, and entrusts them to handle the transaction of buying and selling stocks.

my country's Shenzhen and Shanghai are currently entrusted in person.Face-to-face entrustment generally needs to be confirmed by the consignor before the entrusted securities firm handles the entrustment procedures, while telephone entrustment can only be handled under the condition that the securities firm has a recording telephone.The consignor shall submit a supplementary signature and seal after the consignment transaction is completed by telephone. If there is an error that is not caused by the securities firm, the securities firm will not be responsible.

[-]. Divided by the entrusting period of the client

1. Daily entrustment.That is to say, the consignor's entrustment period is valid only on that day.

2. Valid entrustment per day.Five-day effective order refers to the order that is automatically invalidated when the market closes on the fifth day of market opening.
3. Monthly effective entrustment.A valid order in January refers to an order that automatically expires at the close of the last business day of the exchange at the end of each month.
4. Effective entrustment before sale. Effective entrustment before cancellation refers to the entrustment that is always valid without notice of cancellation by the customer. The theory of this kind of entrustment is that some customers are convinced of the long-term development of market forces, so they do not need to care about temporary gains and losses. Not to mention the long wait.
[-]. Divided by the nature of entrustment

According to the nature of the order, the order can be divided into buy order or sell order.The former means that customers can entrust a securities firm to buy certain securities, while the latter means that customers entrust a securities firm to sell certain securities.

The staff of the securities firm shall immediately fill in the power of attorney after receiving the client's entrustment instruction.

The Shenzhen Stock Exchange stipulates that the power of attorney for entrustment and purchase must be printed in red, and the power of attorney for sellers must be printed in blue. The power of attorney should record the name of the consignor, shareholder code, date and time of entrustment, type of securities, number of shares or denomination , price limit, valid period, salesperson's signature, consignor's signature, entrustment method (telephone, telegram, letter, face-to-face entrustment), storage method (recovery of securities, centralized storage), and the following items should be annotated:
1. Those who do not fill in the "validity period" are deemed to be valid on that day.
2. The entrustment method shall be indicated.
3. Written or telegram consignors should attach the letter and telegram.
4. Those who do not fill in "Limit Price" are regarded as market price orders.
[-]. Divide based on the number of commissions

Taking the entrusted quantity as the standard, entrusted orders can be divided into two types: integer entrusted and zero-numbered entrusted. The former means that the entrusted quantity is the transaction unit specified by the exchange or its multiple.In stock trading, "hand" is often used as a standard unit.Usually 100 shares are a standard lot.One stock is issued per standard lot; if it is a bond, one lot is 1000 yuan.The latter means that the entrusted quantity is less than the transaction unit stipulated by the exchange.

Although securities firms generally do not accept orders of less than one transaction unit, brokers can transfer customers' zero-number orders to zero-number dealers who specialize in zero-number trading.On the one hand, a small number of self-employed traders must buy stocks less than one transaction unit sporadically in the trading hall, and then resell them to commission brokers after making up the whole number of shares; Resell in pieces to commission brokers who require less than one closing unit.In this way, zero-number self-operators must bear certain risks.

(End of this chapter)