Funds

1. Open-end funds refer to investment funds whose size is not fixed but can issue new shares or be redeemed by investors at any time according to market supply and demand conditions.

2. Close-end funds refer to investment funds whose size is determined before issuance and remains unchanged after issuance and within a specified period.

3. Contractual type funds are investment funds established based on certain trust deed principles, with a fund deed established by the fund initiator, fund manager, and fund custodian. The fund manager is responsible for the operation and management of the fund in accordance with laws, regulations, and the fund deed; the fund custodian is responsible for the custody of the fund's assets, executing the manager's instructions, and handling fund-related financial transactions; investors enjoy the investment returns of the fund by purchasing fund units.

4. Corporate type funds are shareholding investment companies formed by investors with a common investment goal in accordance with company law, aiming for profit and investing in specific objects (such as various securities, currencies). Fund holders are both fund investors and company shareholders.

5. Umbrella funds are a management method where a fund management company uses a group of funds under its name as the "parent fund," and under the "parent fund," it forms several "sub-funds" to facilitate and attract investors to freely choose and switch among them. The biggest feature is that it facilitates fund switching for investors and does not charge or charges minimal switching fees to stabilize the investment base.

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6. Funds of funds are characterized by investing in other fund units. They further diversify and reduce risk by investing in funds managed by themselves or different management groups.

7. Hedge funds, originally meaning "funds with hedged risks," originated in the United States in the early 1950s. The initial operation was to use financial derivatives such as futures and options, as well as actual buying and selling of related different stocks, to hedge risks and to a certain extent, avoid and resolve securities investment risks. After decades of evolution, hedge funds have lost their initial connotation of risk hedging and have become an investment model that fully utilizes the leverage effect of various financial derivatives, taking on high risks and pursuing high returns.

8. Venture capital refers to funds raised by professional investment managers or institutions to invest in enterprises, technologies, products, or markets in their early stages, with the expectation of achieving high returns in the future.

9. Equity funds are investment funds that invest in stocks and are the main type of investment funds. The main function of equity funds is to pool small investments from the public into large capital. Investing in different stock portfolios, they are a major institutional investor in the stock market.10. Bond Funds: A bond fund is a type of security investment fund that invests in bonds. It pools the funds of many investors to make a portfolio investment in bonds, seeking a relatively stable return.

11. Money Market Funds: Money market funds refer to funds that invest in short-term marketable securities in the money market. The fund's assets are mainly invested in short-term monetary instruments such as Treasury bills, commercial paper, bank certificates of deposit, government short-term bonds, corporate bonds, and other short-term marketable securities.

Securities Trading Category:

12. Market Maker: A market maker is a licensed trader on the securities market, typically a securities dealer with certain strength and credibility. They continuously quote buy and sell prices (i.e., two-way quotes) for certain specific securities to the public investors and accept the buy and sell requests of the public investors at these prices, conducting securities transactions with their own funds and securities. Market makers maintain market liquidity and meet the investment needs of public investors through this continuous buying and selling.

13. Ex-rights: Due to an increase in the company's share capital, the actual value of the enterprise represented by each share of stock (book value per share) decreases, and this factor needs to be excluded from the stock market price after the fact occurs. The ex-rights benchmark price for bonus shares = closing price on the equity registration day ÷ (1 + bonus share ratio per share). The ex-rights benchmark price for rights issue = (closing price on the equity registration day + subscription price × rights issue ratio) ÷ (1 + rights issue ratio per share).

14. Ex-dividend: Due to the distribution of dividends by the company to its shareholders, the actual value of the enterprise represented by each share of stock (book value per share) decreases, and this factor needs to be excluded from the stock market price after the fact occurs. The ex-dividend benchmark price = closing price on the equity registration day - cash distributed per share.

15. Filling the gap: After ex-rights and ex-dividend, if the majority view the stock positively and the trading market price of the stock is higher than the ex-rights (ex-dividend) benchmark price, this situation is called filling the gap.

16. Discounting the rights: After ex-rights and ex-dividend, if the majority do not view the stock positively and the trading market price of the stock is lower than the ex-rights (ex-dividend) benchmark price, this situation is called discounting the rights.

17. Exchange Trading Market: Refers to the centralized trading market organized by the stock exchange, with a fixed trading place and trading time. The stock exchange accepts and handles the listing and trading of securities in accordance with relevant laws and regulations, and investors trade securities through brokers at the stock exchange.

18. Over-the-Counter (OTC) Market: Also known as counter trading or shop trading market, it refers to the market where securities are traded face-to-face by the buying and selling parties outside the exchange. It does not have a fixed place, and its transactions are mainly conducted over the phone, focusing on securities not listed on the exchange. In recent years, some OTC markets have extensively adopted advanced electronic trading technology, which has greatly expanded the market coverage and improved market efficiency, with the NASDAQ market in the United States being a typical representative.19. Intangible Market: An intangible market operates without a physical trading hall as the organizational center for transactions. Investors use the computer network system of securities brokers connected with the exchange to directly input buy and sell orders into the exchange's matching system for trading. Currently, China's Shenzhen Stock Exchange has essentially met the standards of an intangible market.

20. Limit Order: When a client issues an order to a securities broker to buy or sell a certain stock, they set a limit on the price of the transaction. That is, when buying stocks, a maximum price is specified, allowing the broker to execute the transaction at the specified maximum price or a lower price. When selling stocks, a minimum price is set. The main feature of a limit order is that the purchase and sale of stocks can be executed at the desired price or a better price by the investor, which is conducive to achieving the investor's expected investment plan.

21. Market Order: This type of order specifies only the quantity of the transaction without providing a specific price but requires that the transaction be executed at the best available market price when the order enters the trading hall or matching system. The advantage of a market order is that it ensures immediate execution.

22. Stop Order: This requires the broker to immediately buy or sell at the market price or at a limit price according to the quantity specified by the client when the market price reaches a certain level. The purpose is to protect the profits that the client has already obtained.

23. Market at Open and Close Order: This instructs the broker to buy or sell stocks at the market price or through a limit order at the time of market opening or closing. Its characteristic is that it specifies the time of transaction without strict requirements on the specific quoting method.

24. Sideways Market: This refers to a situation where investors are not actively buying or selling and mostly adopt a wait-and-see attitude, resulting in minimal fluctuations in the stock price for the day. This condition is known as a sideways market.

25. Consolidation: This refers to a period after a sharp rise or fall in stock prices, where the prices begin to fluctuate within a small range and enter a stable phase of change. This phenomenon is called consolidation, which is the preparatory stage for the next significant movement.

26. Gap: This occurs when strong bullish or bearish news causes stock prices to make significant jumps. Gaps usually appear at the beginning or end of major price movements.

27. Pullback: This refers to a temporary decline in stock prices during an upward trend due to an overly rapid increase.

28. Rebound: This refers to the phenomenon where, in a declining market, stock prices sometimes temporarily rise due to the support of buyers after falling too quickly. The rebound is smaller than the decline, and after the rebound, the downward trend resumes.29. Bullish investors are those who have a positive outlook on the stock market and purchase stocks in anticipation of a price increase. They sell the stocks at a higher price to profit from the difference.

30. Bearish investors believe that the stock price has reached its peak and will soon decline, or they anticipate further drops when the stock has already started to fall, selling at high prices to capitalize on the situation.

31. Going long is a speculative action where an investor expects the stock price to rise, purchases the stock, and then sells it before the actual delivery, collecting the difference or making up the difference at the time of delivery.

32. Short selling is a speculative action where an investor anticipates a stock price decline, sells the stock, and then buys back the same amount before the actual delivery, settling only the difference at the time of delivery.

33. Bearish factors are elements and news that prompt a stock price to fall, benefiting bearish investors.

34. Bullish factors are elements and news that stimulate a stock price increase, benefiting bullish investors.

35. A short squeeze occurs when the market widely expects a stock price to rise, leading to many investors trying to go long. However, if the price does not rise significantly, there is a rush to sell near the end of trading, causing the closing price to drop significantly.

36. A short squeeze is when the market widely expects a stock price to fall, leading to many investors trying to go short. However, if the price does not fall significantly, they are unable to buy back at a low price and have to rush to cover their positions before the market closes, causing the closing price to rise significantly.

37. Long-term bullish is the behavior of an investor who has a positive long-term outlook on the stock price, believing it will continuously rise over time. They buy and hold stocks for a long period, selling them after a significant increase in price to earn a profit from the difference.

38. Short-term bullish is the behavior of an investor who is optimistic about the stock price in the short term, buying stocks and selling them if there is even a slight lack of increase in price.

39. Die-hard bullish is the behavior of an investor who is very optimistic about the future of the stock market. After buying stocks, if the price falls, they would rather hold onto them for several years, not selling unless they make a profit.39. **Blue-chip Stocks** refer to a category of stocks with higher prices in the stock market. These stocks have excellent performance or good prospects for development, and their stock prices lead other stocks.

40. **Trapped** refers to the situation where one expects the stock price to rise, but after buying, the stock price falls instead; or when one expects the stock price to fall, but after selling the stock, the price rises instead. The former is called a **bull trap**, and the latter is a **bear trap**.

41. **Stock Price Index** is compiled using statistical index methods. It reflects the overall price movement and trend of the stock market or a certain type of stock. Based on the scope of the price trend reflected by the stock price index, it can be divided into comprehensive indices that reflect the overall market trend and classified indices that reflect the price trend of a certain industry or a certain type of stock. There are two methods for calculating the stock price index: the arithmetic average method and the weighted average method. The arithmetic average method is to simply average the prices of each stock that makes up the index to calculate an average value. The weighted average method takes into account not only the price of each stock but also adjusts the average value according to the impact of each stock on the market. In practice, the number of shares issued or the trading volume of stocks is generally used as a reference for market impact and is included in the index calculation, known as the weight. Since using the actual average price of stocks as the index is not convenient for people to calculate and use, the average price is rarely used directly to represent the index level. Instead, a certain base day's average price is used as the benchmark, and the average prices of subsequent periods are compared with the benchmark day's average price. The ratio of each period is calculated and then converted into a percentage or a permillage value, which serves as the value of the stock price index.

42. **Dow Jones Index** is the most influential and widely used stock price index in the world. It is composed of a representative selection of stocks listed on the New York Stock Exchange, consisting of four stock average indices: ① the Dow Jones Industrial Average, which is based on the stocks of 30 famous industrial companies; ② the Dow Jones Transportation Average, based on the stocks of 20 famous transportation companies; ③ the Dow Jones Utility Average, based on the stocks of 6 famous utility companies; ④ the Dow Jones Composite Average, based on the stocks of the 65 companies involved in the above three stock averages. Among the four Dow Jones indices, the Dow Jones Industrial Average is the most famous. It is widely reported by the mass media and cited as the representative of the Dow Jones Index. The Dow Jones Index is compiled and published by the American newspaper group - Dow Jones Company, and is published in its subsidiary, The Wall Street Journal. The Dow Jones Index was first published on July 3, 1884, with an initial sample of 11 stocks, compiled by one of the founders of Dow Jones Company and the first editor of The Wall Street Journal, Charles Henry Dow (1851-1902).

43. **Nikkei Index**, originally known as the "Nikkei Dow Jones Stock Average," is a stock price average index compiled and published by Nikkei Inc., reflecting the changes in stock prices at the Tokyo Stock Exchange in Japan.

44. **FTSE Index** (Financial Times Stock Exchange Index) is compiled and published by the Financial Times, the most famous newspaper in the UK, to reflect the market changes at the London Stock Exchange. The index is divided into three types: one is a price index composed of 30 stocks; the second is a price index composed of 100 stocks; and the third is a price index composed of 500 stocks. The term "FTSE Index" commonly refers to the first type, which is a price index composed of 30 representative industrial and commercial stocks and calculated using a weighted arithmetic average method.

45. **Hang Seng Index** is compiled by Hang Seng Indexes Company Limited, a wholly-owned subsidiary of Hang Seng Bank, based on a sample of 33 listed stocks in the Hong Kong stock market, with its issue volume as the weight. It is a weighted average stock price index and is one of the most influential stock price indices reflecting the trend of the Hong Kong stock market. The index was first publicly released on November 24, 1969, with a base period of July 31, 1964, and the base index was set at 1000.

46. **HSCEI (Hang Seng China Enterprises Index)**, also known as the H-share index, is fully named the Hang Seng China Enterprises Index. It is also compiled and published by Hang Seng Indexes Company Limited. The index is calculated based on a weighted average stock price index of all H-share companies listed on the Stock Exchange of Hong Kong. The HSCEI was first published on August 8, 1994, with the base day set as July 8, 1994, the date when the number of listed H-share companies reached 10. The closing index on that day was set at 1000 points.

47. **Red Chip Index** refers to the Hang Seng Red Chip Index compiled and published by Hang Seng Indexes Company Limited. The index was officially launched on June 16, 1997, with a sample of 32 red chip stocks that meet its selection criteria, rather than all red chip stocks. The index base day is set as January 4, 1993, with the base day index set at 1000 points.

**Asset Securitization Category**48. Asset securitization refers to the process of converting illiquid assets into securities that can be sold in the financial market.

49. A Special Purpose Vehicle (SPV) is an entity with a single purpose of purchasing receivables and issuing debt secured by these receivables, thereby financing the transaction for the purchasing entity. Positioned between the originator and the investors, the SPV allows the receivables to be separated from the bankruptcy risk of the originator.

50. Collateralised Mortgage Obligation (CMO) is a type of structured financial instrument, offering various cash flow arrangements to investors through different classes of securities or bonds. The cash flows from the underlying collateral are thus divided or prioritized to meet the demands of investors with varying preferences for interest rate and maturity structures, as well as different risk appetites.

Mergers and Acquisitions

51. Friendly acquisition occurs when the acquiring company has reason to believe that the management of the target company will agree to the merger and acquisition, and thus makes a friendly takeover proposal to the management of the target company. A thorough friendly acquisition proposal is made privately and confidentially by the acquirer to the target, without the requirement for public disclosure.

52. Hostile takeover is when the acquirer disregards the interests and concerns of the target company's board of directors and management, and without prior communication or much warning, directly launches a tender offer in the market to entice the shareholders of the target company to sell their shares.

53. Tender Offer is a method of acquisition where the acquirer makes a written offer to the shareholders of the target company to purchase their shares, according to the terms, purchase price, duration, and other stipulated matters as announced in the legally published acquisition offer.

54. Leveraged buyout essentially refers to a debt-financed acquisition, where debt capital is the primary financing tool, often raised against the assets of the target company as collateral.

55. Financial derivatives are typically financial instruments derived from underlying assets. Since many financial derivative transactions do not have corresponding entries on the balance sheet, they are also known as "off-balance-sheet transactions." Based on the product form, they can be categorized into forwards, futures, options, and swaps.

56. An options contract gives the buyer the right, after paying a certain premium to the seller, to sell or purchase a specified quantity of the underlying asset (a physical commodity, security, or futures contract) at a certain price (the strike price) within a certain period.57. Futures Contract: A futures contract is a standardized agreement formulated by a futures exchange, specifying the delivery of a certain quantity and quality of physical or financial goods at a particular time and place in the future.

58. Commodity Futures: Commodity futures refer to futures contracts with physical goods as the underlying asset. These have a long history and come in a wide variety, including agricultural products, metal products, and energy products, among several major categories.

59. Financial Futures: Financial futures are futures contracts with financial instruments as the underlying asset. As a type of futures trading, they share the general characteristics of futures trading, but compared to commodity futures, their underlying asset is not a physical good but traditional financial products.

60. Interest Rate Futures: Interest rate futures are futures contracts with interest rates as the underlying asset. They mainly include long-term interest rate futures based on long-term government bonds and short-term interest rate futures based on two-month short-term deposit rates.

61. Currency Futures: Currency futures are futures contracts with exchange rates as the underlying asset. They emerged to meet the needs of countries engaged in foreign trade and financial operations, with the purpose of hedging exchange rate risks.

62. Stock Index Futures: Stock index futures are futures contracts with stock indices as the underlying asset. They do not involve the delivery of the actual stocks; their prices are calculated based on the stock index, and the contracts are settled in cash.

63. Call Option: A call option is the right, but not the obligation, given to the buyer of the option to purchase a certain quantity of the underlying asset at a specified exercise price within the validity period of the option contract.

64. Put Option: A put option is the right, but not the obligation, given to the buyer of the option to sell a certain quantity of the underlying asset at a specified exercise price within the validity period of the option contract.

Securities Issuance Category:

65. Samurai Bonds: Foreign bonds issued in the Japanese bond market, i.e., bonds issued by governments, financial institutions, industrial and commercial enterprises, and international organizations outside of Japan in the domestic Japanese market, denominated in Japanese yen. Samurai bonds are unsecured and typically have a term of 3 to 10 years, usually traded on the Tokyo Stock Exchange.66. Dragon bonds are foreign bonds issued in the currencies of Asian countries or regions other than the Japanese yen. They are a product of the rapid economic growth in East Asia and have seen rapid development since 1992. Their typical maturity ranges from 3 to 8 years. Dragon bonds have higher credit requirements for issuers, typically governments and related institutions.

67. Blue-chip stocks refer to the stocks of large companies that hold a significant and dominant position within their industry, have excellent performance, active trading, and generous dividends. The term "blue-chip" originates from Western casinos, where blue chips are the most valuable among chips of three colors.

68. Red chips is a concept that emerged in the early 1990s in the Hong Kong stock market. Hong Kong and international investors call stocks with mainland China concepts, registered abroad but listed in Hong Kong, red chips. Early red chips were mainly formed by Chinese-funded companies acquiring and transforming small and medium-sized listed companies in Hong Kong, such as CITIC Pacific. Later red chips were primarily formed by mainland provinces and cities reorganizing their Hong Kong-based window companies and listing them in Hong Kong, such as Beijing Enterprises.

69. Depository receipts (DR) are negotiable certificates representing foreign company securities that circulate in a country's securities market. For example, when a company from one country wants its shares to circulate in a foreign country, it entrusts a certain number of shares to an intermediary institution (usually a bank, known as the custodian bank). The custodian bank then notifies a depository bank in the foreign country to issue depository receipts representing those shares, which can then be traded on foreign stock exchanges or over-the-counter markets.

70. Transferable shares are a unique product of China's stock market. Holders of state shares and legal person shares give up their preemptive rights and transfer them for a fee to other legal persons or the general public. The new shares subscribed by these legal persons or the public when they exercise the corresponding preemptive rights are known as transferable shares.

71. Warrants are issued by listed companies, granting warrant holders the right to purchase a certain amount of the company's shares at a predetermined price at some time in the future or within a certain period. Essentially, they are a type of call option.

72. Covered warrants also grant the holder the right to purchase a certain stock at a specific price, but unlike regular warrants, they are issued by a third party other than the listed company, typically a reputable financial institution.

73. High-performance stocks are the stocks of companies with excellent performance. However, the definition of high-performance stocks varies between countries. In China, investors mainly measure high-performance stocks by post-tax profit per share and return on equity. Generally, stocks with post-tax profits in the upper-middle range among all listed companies and a return on equity significantly exceeding 10% for three consecutive years after going public are considered high-performance stocks.

74. Junk stocks refer to the stocks of companies with poor performance. These companies may be in industries with poor prospects or suffer from poor management, with some even falling into losses. Their stocks perform poorly in the market, with low stock prices, inactive trading, and poor year-end dividends.

75. A-shares are officially known as Renminbi common stocks. They are issued by companies within China and are available for subscription and trading by domestic institutions, organizations, or individuals (excluding investors from Taiwan, Hong Kong, and Macau) in Renminbi.76. B Shares: The official name for B shares is Renminbi Special Stocks. They are denominated in Renminbi, subscribed and traded in foreign currencies, and listed on domestic (Shanghai, Shenzhen) stock exchanges. Investors in B shares are limited to foreign natural persons, legal entities, and other organizations, as well as natural persons, legal entities, and other organizations from Hong Kong, Macao, and Taiwan regions, and Chinese citizens residing abroad. Other investors as stipulated by the China Securities Regulatory Commission.

77. H Shares, N Shares, S Shares: H shares refer to foreign shares registered in mainland China and listed in Hong Kong. The English name for Hong Kong is "HOngKOng," hence the first letter "H" is used, and foreign shares listed in Hong Kong are called H shares. Similarly, the first letter of New York is "N," and the first letter of Singapore is "S," so stocks listed in New York and Singapore are respectively called N shares and S shares.

78. Shareholders' Equity: Also known as net assets, shareholders' equity refers to the portion of a company's total assets remaining after deducting liabilities. Shareholders' equity includes the following five parts: First, share capital, which is the capital calculated at par value. Second, capital reserve, including stock issuance premium, legal property revaluation increment, and the value of donated assets. Third, surplus reserve, which is divided into statutory surplus reserve and discretionary surplus reserve. The statutory surplus reserve is compulsorily extracted at 10% of the company's after-tax profits to cope with operational risks. When the accumulated statutory surplus reserve reaches 50% of the registered capital, no further extraction is required. Fourth, statutory welfare fund, extracted at 5% to 10% of after-tax profits, used for the company's welfare facility expenses. Fifth, undistributed profits, referring to profits retained by the company for distribution in future years or profits awaiting distribution.

79. Shareholders' Equity Ratio: The shareholders' equity ratio is the ratio of shareholders' equity to total assets. This ratio should be moderate. If the equity ratio is too low, it indicates that the enterprise is over-indebted, which can easily weaken the company's ability to withstand external shocks. If the equity ratio is too high, it means that the enterprise is not actively using financial leverage to expand its operational scale.

80. Gilt-edged Bonds: As early as the 17th century, the British government, with parliamentary approval, began issuing government bonds guaranteed by tax revenues to pay principal and interest. These bonds had a high credit rating. The British government bonds issued at the time had a golden edge, hence they were called "gilt-edged bonds." The term "gilt-edged bonds" generally refers to all bonds issued by central governments, i.e., national debt.

67. Local Government Bonds: In many countries, local governments and public institutions with fiscal revenues also issue bonds, which are known as local government bonds. These 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 typically backed by the local government's tax revenue capacity for principal and interest repayment.

69. International Bonds: International bonds are bonds issued by a country's government, financial institutions, industrial and commercial enterprises, or international organizations on foreign financial markets to raise and finance funds, denominated in foreign currencies. The important characteristic of international bonds is that the issuer and investors belong to different countries, and the funds raised come from foreign financial markets. Depending on the currency used for issuing the bonds and the place of issuance, international bonds can be further divided into foreign bonds and Eurobonds.

70. Foreign Bonds: Foreign bonds are bonds issued by a country's government, financial institutions, industrial and commercial enterprises, or international organizations in another country, denominated in the local currency of that country.

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

75. Discount Treasury Bonds: Discount Treasury Bonds refer to government bonds that do not have coupons attached. They are issued at a specified discount rate, below the face value of the bond, and the principal and interest are paid at face value upon maturity. The difference between the issue price and the face value of the discount bond is the interest of the bond.76. Interest-bearing Government Bonds: Interest-bearing government bonds refer to bonds that have interest coupons attached to the bond certificate, and interest is paid according to the rate and payment method specified on the bond's face value.

77. Corporate Bonds: Corporate bonds, also commonly known as company bonds, are bonds issued by enterprises in accordance with legal procedures, with an agreement to repay the principal and pay interest within a certain period.

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

79. Convertible Corporate Bonds: Convertible corporate bonds (short for convertible bonds) are a special type of corporate bond that can be converted into common stock at a specific time and under specific conditions. Convertible bonds possess characteristics of both bonds and stocks.

80. Public Offering: A public offering refers to the act of an issuer widely selling securities to the general public through intermediaries. In the case of a public offering, all legal social investors are eligible to subscribe.

82. Par Value Issuance: Par value issuance, also known as equal amount issuance or face value issuance, refers to the issuer selling securities at their face value.

83. Premium Issuance: Premium issuance refers to the issuer selling stocks or bonds at a price higher than their face value. Premium issuance can be further divided into market price issuance and mid-price issuance. Market price issuance, also known as current price issuance, is based on the circulating price of the same or related stocks to determine the stock issuance price. Mid-price issuance refers to the issuance of stocks at a price between the face value and the market price. In China, when joint-stock companies issue additional shares to existing shareholders, they generally use mid-price issuance.

84. Discounted Issuance: Discounted issuance refers to the sale of new shares at a price lower than their face value, that is, issuing stocks at a certain discount from the face value. In China, Article 131 of the "Company Law of the People's Republic of China" clearly stipulates, "The price of stock issuance can be based on the par value, or it can exceed the par value, but it must not be lower than the par value."

85. Stock Listing: Stock listing refers to the legal act of already-issued stocks being publicly traded on an exchange after approval by the stock exchange. Stock listing serves as the "bridge" connecting stock issuance and stock trading. In China, stocks gain listing qualifications immediately after public issuance.

86. Dual Listing: Dual listing refers to a company's stocks being listed on two stock exchanges simultaneously. For a company that is already listed, if it plans to list on another stock exchange, it has two options: one is to issue a different type of stock overseas and list this stock in the foreign market. Some Chinese companies that issue A-shares domestically and H-shares in Hong Kong fall into this category. The other form is to list the same type of stocks in both locations and achieve cross-market circulation of shares through international custodian banks and securities brokers. This method is generally referred to as a secondary listing, and listing through depositary receipts (ADR or GDR) in foreign markets belongs to this category.87. Backdoor Listing: Backdoor listing refers to the process where non-listed companies achieve indirect listing by acquiring underperforming and poorly capitalized publicly traded companies, divesting the assets of the acquired company, and injecting their own assets.

88. Shell Company Listing: Shell company listing is when the parent company (group company) of a publicly traded company injects its main assets into the listed subsidiary to realize the listing of the parent company.

89. Prospectus: The prospectus is a crucial disclosure document before a company's stock goes public. In China, it is stipulated that listed companies must publish the prospectus within three days before the trading day of the stock, in the designated newspapers for information disclosure by the China Securities Regulatory Commission. The prospectus should be placed at the company's location, the stock exchange where the trading is listed, and the relevant securities operating institutions and their branches, to publicize and explain the company itself and the listing of its stock to the public. This is to help investors make correct buying and selling decisions after the company's stock goes public. If the company's stock from the end of the issuance to the first trading day does not exceed 90 days, or if the prospectus is still valid, the issuer can prepare an abbreviated prospectus. If the company's stock from the end of the issuance to the first trading day exceeds 90 days, or if the prospectus has expired, the issuer must prepare a complete prospectus.

90. Market Capitalization: For a publicly listed company, the market price of its stock multiplied by the total number of shares issued equals the market value of the company, also known as its market capitalization. The sum of the market capitalizations of all listed companies gives the total market capitalization of the entire stock market.

91. Float Market Value: In China's stock market, state-owned shares and legal person shares of companies cannot be traded on the stock exchange. Only a part of the issued share capital, known as the floating share capital, is truly circulating in the market. Multiplying the quantity of this share capital by the stock price gives the company's floating market value in the stock market.

92. Bonus Shares: Bonus shares are when a listed company retains the profits of the year within the company and distributes them as dividends in the form of additional shares, thereby converting profits into share capital. After issuing bonus shares, the total amount and structure of the company's assets, liabilities, and shareholders' equity do not change, but the total share capital increases, and the net asset value per share decreases.

93. Capitalization of Reserves: Capitalization of reserves refers to the conversion of a company's capital reserve into share capital. This process does not change the shareholders' equity but increases the scale of share capital, resulting in an objective outcome similar to issuing bonus shares. The fundamental difference between capitalization of reserves and bonus shares is that bonus shares come from the company's annual after-tax profits and can only be distributed to shareholders when the company has a surplus. In contrast, capitalization of reserves comes from the capital reserve and is not limited by the amount or timing of the company's distributable profits for the year. It can be done by simply reducing the capital reserve on the company's books and increasing the corresponding registered capital. Therefore, strictly speaking, capitalization of reserves is not a dividend return to shareholders.

Other Categories:

94. NASDAQ: NASDAQ, which stands for "The National Association of Securities Dealers Automated Quotation System," is a U.S. electronic quotation system for over-the-counter (OTC) securities. It was established in 1971 and is unique for two features: its computer network-based automated quotation system, which is an electronic information system specifically for collecting and disseminating quotes for securities dealers trading unlisted securities, and its market maker system.

95. New York Stock Exchange (NYSE): The New York Stock Exchange is currently the largest securities trading market in the world. At the beginning of U.S. securities issuance, there was no centralized trading exchange, and securities transactions mostly took place in coffeehouses and auction houses. On May 17, 1792, 24 brokers signed the "Buttonwood Agreement" under a buttonwood tree in front of a coffeehouse at the corner of Wall Street and William Street in New York, which was the precursor to the NYSE. By 1817, stock trading on Wall Street had become very active, leading market participants to establish the "New York Securities and Exchange Board." A centralized securities trading market was essentially formed, and in 1863, the board was renamed the New York Stock Exchange, a name that has been used to this day. To date, it remains the largest and most representative national securities exchange in the United States and is also the world's largest, most organized, best-equipped, most strictly managed, and most influential securities exchange on the global economy.96. The London Stock Exchange, as the world's third-largest securities trading center, is also the oldest stock exchange in the world. Its predecessor was the open-air market on London's Exchange Alley in the late 17th century, which was known as the "Royal Exchange" for trading government bonds. In 1773, it moved indoors to Sweeting Street and was officially renamed the "London Stock Exchange." Compared to other financial centers around the world, the London Stock Exchange has three major characteristics: ① It has the most diverse types of listed securities, including not only stocks but also government bonds, nationalized industry bonds, bonds from the Commonwealth and other foreign governments, and bonds issued by local governments, public institutions, and industrial and commercial enterprises, with foreign securities accounting for about 50%; ② It has a large number of funds invested in international securities, and for companies, listing in London means beginning to establish important connections with the international financial community; ③ It operates four independent trading markets.

97. The Tokyo Stock Exchange is currently the world's second-largest stock exchange after the New York Stock Exchange. In May 1878, the Japanese government established the "Stock Exchange Regulations" and based on this foundation, set up two stock exchanges in Tokyo and Osaka, with the Tokyo Stock Exchange being the predecessor of the Tokyo Stock Exchange.

98. The earliest securities trading in Hong Kong can be traced back to 1866. The first securities exchange in Hong Kong, the Hong Kong Stockbrokers' Association, was established in 1891 and was renamed the Hong Kong Stock Exchange in 1914. In 1921, a second securities exchange, the Hong Kong Securities Brokers Association, was established. In 1947, these two exchanges merged to form the Hong Kong Stock Exchange Limited. By the late 1960s, the existing exchange in Hong Kong could no longer meet the needs of the booming and developing stock market. After 1969, three more stock exchanges were established: the Far East, Kam Ngan, and Kowloon stock exchanges, entering the so-called "Four Exchanges Era." The stock market crash of 1973-1974 fully exposed the various drawbacks caused by the coexistence of four exchanges in the Hong Kong securities market. On March 27, 1986, the four exchanges officially merged to form the Hong Kong United Exchanges. On April 2, the United Exchanges began operations and started to enjoy the exclusive right to establish, operate, and maintain the securities market in Hong Kong.

99. Insider trading mainly includes the following behaviors: ① Insiders using insider information to trade securities, or suggesting others to trade securities based on insider information; ② Insiders leaking insider information to others, enabling them to profit from that information; ③ Non-insiders obtaining insider information through improper means or other channels, and trading securities or suggesting others to trade securities based on that insider information. Insiders here refer to members of the board of directors, board of supervisors, and other senior management personnel of listed companies, staff of regulatory authorities and securities intermediaries in the securities market, and lawyers, accountants, and others who provide services to the listed company and have access to or obtain insider information.

100. Related party transactions are transactions between related parties of an enterprise. According to the "Enterprise Accounting Standards - Disclosure of Related Party Relationships and Transactions" issued by the Ministry of Finance on May 22, 1997, in corporate financial and operational decision-making, if one party has the ability to directly or indirectly control, jointly control, or significantly influence another party, it is considered a related party; if two or more parties are controlled by the same party, they are also considered related parties. Any transactions between the aforementioned related parties that involve the transfer of resources or obligations, regardless of whether a price is charged, are considered related party transactions.