1. What is an investor?
Investors are organizations and individuals who buy and sell securities on the stock market for the purpose of making a profit. Investors are those who provide capital to the stock market to create liquidity for securities and investment certificates of public companies , investment funds, and securities investment companies . securities participating in the market . Therefore , investors play a decisive role in the dynamism and development of the stock market.
2. Classification of investors in the stock market
The stock market has the participation of many investors with different forms , financial capacities , goals and investment scales . Based on those criteria , investors can be divided into the following categories.
2.1. Based on the form of the subject
– Individual investors are people who have temporary idle capital and participate in buying and selling securities on the stock market for the purpose of making a profit . However, individual stock trading activities often contain a lot of risks , especially for those with little knowledge about stocks and the stock market. Therefore , investors often choose investment forms that suit their ability and level of acceptance . their
– Institutional investors are investment institutions formed by individual investors (usually securities investment funds ). Investing through an organization has the outstandingadvantage of allowing portfolio diversification and investment decisions being made by experienced experts , therefore Y can reduce risks and increase the efficiency of investment activities.
2.2. Based on the nature of investment activities
– Professional stock investors are organizations that consider stock investment as their regular business activity. According to the provisions of the Securities Law 2019, professional securities investors are commercial banks , financial companies , financial leasing companies, insurance business organizations , and financial institutions. securities trading… These organizations often have functional departments including many experienced experts to research the market and make investment decisions ;
See more : How to identify professional stock investors
– Amateur stock investors are investors who buy and sell stocks in an unprofessional manner . The majority of unscrupulous investors are usually individuals , they analyze and make their own investment decisions .
2.3. Based on investor nationality
– Domestic securities investors are domestic organizations and individuals with securities investment activities on the Vietnamese stock market ;
– Foreign securities investors are foreign organizations and individuals allowed to buy , sell , and hold securities in Vietnam according to Law Business and Securities Law
2. Rights and obligations of investors in the stock market
2.1. Rights of securities investors
Securities investors who own shares of a public company, securities investment fund certificates or certificates of a securities investment company have the rights of a shareholder of that company or organization, which has the right to participate in the management of public companies or investment funds or securities investment companies. Investors exercise these rights through the General Meeting of Shareholders (for public companies) or the General Meeting of Investors . funds or securities investment companies) ).
If a public company or investment fund or stock investment company whose shares investors own is profitable, the investors will be paid dividends for the number of shares they own . own . Dividends can be paid in cash, shares or the right to buy certificates of a company, stock investment fund or stock investment company in which the investor holds shares.
In securities investment activities , investors have the right to decide the type of securities or investment fund certificates, the securities investment company needs to buy, and has the right to establish and manage securities . reasons for their investment ( except in the case of organized investment, the rights of investors who are members of securities investment organizations will be limited). Investors have the right to sell purchased securities and buy new types of securities to restructure their investment portfolio but must comply with the provisions of law on securities . . When performing stock transactions that generate profits , investors are entitled to enjoy those profits after paying taxes and fulfilling financial obligations to the state .
2.2. Obligations of securities investors
Due to the characteristics of securities business activities , securities investors must meet the conditions and comply with the constraints of securities laws . Investors must register as members and open a securities trading account at a securities company that is a member of the stock exchange. Buying and selling securities must be done through that securities company.
Investors must deposit securities under their ownership at a securities depository center . All transactions transferring ownership of securities from seller to buyer and vice versa, including clearing or payment for buying and selling securities , are carried out through a central depository . Securities signing .
Investors must comply with the trading regulations of securities companies , the provisions of law on securities transactions and must pay transaction fees to securities companies in case of There are transactions made. In case the transfer of securities generates profits for the investor , the investor must fulfill financial obligations to the State ( if required by law ).
