1. What is stock trading?

When it comes to stock trading activities, we often think that stock trading is the activity of buying and selling financial assets, such as stocks, bonds, investment funds, and financial instruments. other, through stock exchanges or electronic trading systems. The main goal of stock traders is to make profits from buying at low prices and selling at high prices, or vice versa, depending on their investment strategy. Securities traders can be individuals or organizations, and they can participate in the stock market for long-term investments or short-term trading to take advantage of short-term fluctuations in stock prices or assets. other. Stock investors must also research the market, analyze finances, and monitor economic events and factors to make smart investment decisions. Stock trading can bring big profits, but it also comes with high risks. The stock market can be volatile and unpredictable, and stock investing requires knowledge, skill and the ability to assess risk. Many people involved in stock trading use the services of financial experts or investment fund managers to optimize investment opportunities and manage risks.

Stock trading can be profitable, but it also carries risks. Variations in security prices may affect the value of participants' investments. To effectively participate in stock trading, investors need to have a thorough knowledge of the financial market, financial products, and be able to make decisions based on market information and analysis. 

Pursuant to the provisions of Clause 28, Article 4 of the Securities Law 2019, there are regulations on securities trading as follows:

Securities trading is the performance of securities brokerage operations, securities trading, securities underwriting, securities investment consulting, securities investment fund management, and securities investment portfolio management. and provide securities services according to regulations.

The business operations of securities companies are regulated in Article 72 of the Securities Law 2019, which stipulates as follows:

- Licensed securities company to perform one, some or all of the following business operations: Securities brokerage; Securities trading; Underwriting securities; Securities investment consulting.

- Securities companies that are not licensed to perform securities brokerage operations will not be allowed to conduct self-trading of securities.

- Securities companies are only licensed to perform securities underwriting operations when they are licensed to conduct securities self-trading operations.

Thus, securities trading is understood as the performance of securities brokerage operations, securities self-trading, securities underwriting, securities consulting, securities investment fund management, and investment portfolio management. Investing in securities and providing securities services.

2. Conditions for granting a license to establish and operate securities business of a securities company

Conditions for granting a license to establish and operate securities business of a securities company: Accordingly, an enterprise will only be granted a license to establish and operate securities business if it does not meet the following conditions: According to the provisions of law, it will not be eligible to issue a license to establish and operate securities business. Regulations on conditions for issuance of licenses for establishment and securities business operations of securities companies are specifically stipulated in Article 74 of the Securities Law 2019. Accordingly, in order to be granted licenses for establishment and business operations, Securities of securities companies need to meet the following conditions:

First: Capital conditions.Accordingly, the charter capital contribution to the securities company must be in Vietnam Dong

 Second: Conditions for shareholders and capital contributing members include:

- Shareholders and capital contributing members are individuals who do not fall into the cases that are not entitled to establish and manage enterprises in Vietnam according to the provisions of the Enterprise Law 2020

- Shareholders and capital contributing members are organizations that must have legal status and be operating legally; Profitable business activities for 02 years immediately preceding the year of application for license; The most recent year's financial statements must be audited with an unqualified opinion;

- Shareholders, capital contributing members own 10% or more of the charter capital of 01 securities company and related persons of such shareholders, capital contributing members (if any) do not own more than 5% of the charter capital charter of another securities company;

- Shareholders and capital contributing members who are foreign investors must meet the prescribed conditions

Third: Conditions on the structure of shareholders and capital contributing members.There are at least 02 founding shareholders and capital contributing members who are organizations. The total capital contribution ratio of organizations is at least 65% of charter capital, of which organizations that are insurance enterprises and commercial banks own a minimum of 30% of charter capital.

Fourth: Facilities conditions

Accordingly, physical conditions include:

Have a secure workplace for securities business activities. In addition, the headquarters must have sufficient facilities, techniques, equipment, office equipment, and technology systems in accordance with the professional process of securities business activities.

Fifth: Personnel conditions

There is a General Director (Director), at least 03 employees with appropriate securities practice certificates for each securities business operation requested for licensing and at least 01 compliance control employee. The General Director (Director) must meet the standards such as not being prosecuted for criminal liability, banned from practicing, and having at least 02 years of experience working in the organization's professional department in the field. finance, banking securities... Have a certificate of financial analysis practice or a certificate of practice in escrow management. Not be sanctioned for administrative violations in the field of securities and stock market within the most recent 6 months up to the time of application submission.

Thus, if a securities company wants to issue a license to establish and operate securities business, it must comply with the 5 basic conditions mentioned above according to the law. If you do not meet the 5 basic conditions mentioned above, you will not be granted a license to establish and operate securities business.

3. Competent authority to issue license to establish and operate securities business.

Pursuant to the provisions of Article 70 of the Securities Law 2019, there are regulations on the authority to grant, reissue, adjust and revoke licenses for establishment and securities business operations.

The State Securities Commission has the authority to issue, reissue, adjust and revoke licenses for establishment and securities business operations for securities companies, securities investment fund management companies, and company branches. foreign securities and fund management companies in Vietnam.

After being granted a License to establish and operate securities business, securities companies and securities investment fund management companies must register their businesses according to the provisions of the Law on Enterprises 2020. Foreign fund management companies in Vietnam must register their business at the Business Registration Authority. Securities companies and securities investment fund management companies are organized in the form of limited liability companies or joint stock companies.