Vietnam stock market operation
HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM
Financial Management Report VIETNAMESE STOCK MARKET OPERATION Tutor: Lê Bình
Tutorial 2 FB10 Group’s members: Hoàng Thu Nga Nguyễn Thu Trang Trần Thị Thảo Nguyên Bùi Minh Quân Nguyễn Đặng Thanh Bình Mai Thị Hương
Ha Noi, April 11th, 2012
TABLE OF CONTENT
I. Introduction 1
II. Trading venues 1
1. Ho Chi Minh Stock Exchange 1
2. Ha Noi Stock Exchange 2
3. UPCOM & OTC 3
III. Orders 4
1. Market and limit orders 4
2. ATC & ATO 6
IV. Trading process 7
V. Methods 10
1. Order matching method 10
2. Negotiating method 12
VI. Conclusion 14
REFERENCES 15
I. Introduction
Vietnam’s securities markets are supervised and essentially managed by the State Securities Commission which is part of the Ministry of Finance. A Law on Securities (23/08/2006) was adopted in June of 2006 to facilitate the development of the securities market speedily and sustainably. Ten years after Vietnam's stock exchange began, it's become a symbol of what the country is trying to achieve but has yet to fully realize: a market-based economy. In this communist nation, the stock market is seen as the ultimate symbol of capitalism, because people have the freedom to choose their own financial fates, for good or bad, through their investments. The stock market has grown significantly — only two stocks were traded in the beginning, compared with 586 today on both the Ho Chi Minh Exchange and the Hanoi Exchange — and is attracting a growing number of domestic investors. It's also become a crucial channel for companies that want to raise medium- and long-term capital. As stock market plays an important role in mobilizing capital for companies, we would like to provide some basic information about the operation of Vietnamese stock market.
II. Trading venues
The stock market, in terms of the modern economy, is considered as a place that trading
Financial Management Report VIETNAMESE STOCK MARKET OPERATION Tutor: Lê Bình
Tutorial 2 FB10 Group’s members: Hoàng Thu Nga Nguyễn Thu Trang Trần Thị Thảo Nguyên Bùi Minh Quân Nguyễn Đặng Thanh Bình Mai Thị Hương
Ha Noi, April 11th, 2012
TABLE OF CONTENT
I. Introduction 1
II. Trading venues 1
1. Ho Chi Minh Stock Exchange 1
2. Ha Noi Stock Exchange 2
3. UPCOM & OTC 3
III. Orders 4
1. Market and limit orders 4
2. ATC & ATO 6
IV. Trading process 7
V. Methods 10
1. Order matching method 10
2. Negotiating method 12
VI. Conclusion 14
REFERENCES 15
I. Introduction
Vietnam’s securities markets are supervised and essentially managed by the State Securities Commission which is part of the Ministry of Finance. A Law on Securities (23/08/2006) was adopted in June of 2006 to facilitate the development of the securities market speedily and sustainably. Ten years after Vietnam's stock exchange began, it's become a symbol of what the country is trying to achieve but has yet to fully realize: a market-based economy. In this communist nation, the stock market is seen as the ultimate symbol of capitalism, because people have the freedom to choose their own financial fates, for good or bad, through their investments. The stock market has grown significantly — only two stocks were traded in the beginning, compared with 586 today on both the Ho Chi Minh Exchange and the Hanoi Exchange — and is attracting a growing number of domestic investors. It's also become a crucial channel for companies that want to raise medium- and long-term capital. As stock market plays an important role in mobilizing capital for companies, we would like to provide some basic information about the operation of Vietnamese stock market.
II. Trading venues
The stock market, in terms of the modern economy, is considered as a place that trading