Issuance of securities

Disclosure is the basic philosophy and guiding ideology of modern securities legislation, which is the core content and soul of the securities law. The basic spirit of the securities law is to protect the investors' right to know by forcing the issuers to disclose. This is because the public investors are in a weak position and are unable to force the issuers to disclose the information they need for their investment decisions.

The issuance of securities is an activity that a company raises from society due to the need for funds. There are two main ways to raise funds through the issuance of securities: one is to borrow money, that is, to issue bonds; the other is to sell the ownership of the company, that is, to issue stocks. The company that issues stocks or debt is called the issuer, and the person who buys stocks or bonds is the holder of the securities, that is, the investor. The market where the issuer acts as the seller and sell the securities to the investors for the first time is called the primary market (is there no fixed place in the primary market, it is the general term of the securities issuance market); after the issuance, the market in which the securities continue to circulate through resale transactions is called the secondary market (the stock exchange is a typical form of the secondary market). The so-called securities market is the collective term for the primary market and the secondary market.