Factors Affecting State Management of Capital Mobilization Activities Through Securities Issuance of Joint Stock Commercial Banks

2.3.2. Factors affecting state management of capital mobilization activities through securities issuance of joint stock commercial banks

In the process of implementing State management of the credit risk management activities of commercial banks, many factors are affected. Within the framework of the thesis, the author presents the following 3 groups of factors:

2.3.2.1. Factors belonging to the management subject

- Cognitive and management capacity of the management subject

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• Qos Assurance Methods for Multimedia Communications zt2i3t4l5ee zt2a3gs zt2a3ge zc2o3n4t5e6n7ts low. The EF PHB requires a sufficiently large number of output ports to provide low delay, low loss, and low jitter. EF PHBs can be implemented if the output port's bandwidth is sufficiently large, combined with small buffer sizes and other network resources dedicated to EF packets, to allow the router's service rate for EF packets on an output port to exceed the arrival rate λ of packets at that port. This means that packets with PHB EF are considered with a pre-allocated amount of output bandwidth and a priority that ensures minimum loss, minimum delay and minimum jitter before being put into operation. PHB EF is suitable for channel simulation, leased line simulation, and real-time services such as voice, video without compromising on high loss, delay and jitter values. Figure 2.10 Example of EF installation Figure 2.10 shows an example of an EF PHB implementation. This is a simple priority queue scheduling technique. At the edges of the DS domain, EF packet traffic is prioritized according to the values ​​agreed upon by the SLA. The EF queue in the figure needs to output packets at a rate higher than the packet arrival rate λ. To provide an EF PHB over an end-to-end DS domain, bandwidth at the output ports of the core routers needs to be allocated in advance to ensure the requirement μ > λ. This can be done by a pre-configured provisioning process. In the figure, EF packets are placed in the priority queue (the upper queue). With such a length, the queue can operate with μ > λ. Since EF was primarily used for real-time services such as voice and video, and since real-time services use UDP instead of TCP, RED is generally not suitable for EF queues because applications using UDP will not respond to random packet drop and RED will strip unnecessary packets. 2.2.4.2 Assured Forwarding (AF) PHB PHB AF is defined by RFC 2597. The purpose of PHB AF is to deliver packets reliably and therefore delay and jitter are considered less important than packet loss. PHB AF is suitable for non-real-time services such as applications using TCP. PHB AF first defines four classes: AF1, AF2, AF3, AF4. For each of these AF classes, packets are then classified into three subclasses with three distinct priority levels. Table 2.8 shows the four AF classes and 12 AF subclasses and the DSCP values ​​for the 12 AF subclasses defined by RFC 2597. RFC 2597 also allows for more than three separate priority levels to be added for internal use. However, these separate priority levels will only have internal significance. PHB Class PHB Subclass Package type DSCP AF4 AF41 Short 100010 AF42 Medium 100100 AF43 High 100110 AF3 AF31 Short 011010 AF32 Medium 011100 AF33 High 011110 AF2 AF21 Short 010010 AF22 Medium 010100 AF23 High 010110 AF1 AF11 Short 001010 AF12 Medium 001100 AF13 High 001110 Table 2.8 AF DSCPs The AF PHB ensures that packets are forwarded with a high probability of delivery to the destination within the bounds of the rate agreed upon in an SLA. If AF traffic at an ingress port exceeds the pre-priority rate, which is considered non-compliant or “out of profile”, the excess packets will not be delivered to the destination with the same probability as the packets belonging to the defined traffic or “in profile” packets. When there is network congestion, the out of profile packets are dropped before the in profile packets are dropped. When service levels are defined using AF classes, different quantity and quality between AF classes can be realized by allocating different amounts of bandwidth and buffer space to the four AF classes. Unlike EF, most AF traffic is non-real-time traffic using TCP, and the RED queue management strategy is an AQM (Adaptive Queue Management) strategy suitable for use in AF PHBs. The four AF PHB layers can be implemented as four separate queues. The output port bandwidth is divided into four AF queues. For each AF queue, packets are marked with three “colors” corresponding to three separate priority levels. In addition to the 32 DSCP 1 groups defined in Table 2.8, 21 DSCPs have been standardized as follows: one for PHB EF, 12 for PHB AF, and 8 for CSCP. There are 11 DSCP 1 groups still available for other standards. 2.2.5.Example of Differentiated Services We will look at an example of the Differentiated Service model and mechanism of operation. The architecture of Differentiated Service consists of two basic sets of functions: Edge functions: include packet classification and traffic conditioning. At the inbound edge of the network, incoming packets are marked. In particular, the DS field in the packet header is set to a certain value. For example, in Figure 2.12, packets sent from H1 to H3 are marked at R1, while packets from H2 to H4 are marked at R2. The labels on the received packets identify the service class to which they belong. Different traffic classes receive different services in the core network. The RFC definition uses the term behavior aggregate rather than the term traffic class. After being marked, a packet can be forwarded immediately into the network, delayed for a period of time before being forwarded, or dropped. We will see that there are many factors that affect how a packet is marked, and whether it is forwarded immediately, delayed, or dropped. Figure 2.12 DiffServ Example Core functionality: When a DS-marked packet arrives at a Diffservcapable router, the packet is forwarded to the next router based on Per-hop behavior is associated with packet classes. Per-hop behavior affects router buffers and the bandwidth shared between competing classes. An important principle of the Differentiated Service architecture is that a router's per-hop behavior is based only on the packet's marking or the class to which it belongs. Therefore, if packets sent from H1 to H3 as shown in the figure receive the same marking as packets from H2 to H4, then the network routers treat the packets exactly the same, regardless of whether the packet originated from H1 or H2. For example, R3 does not distinguish between packets from h1 and H2 when forwarding packets to R4. Therefore, the Differentiated Service architecture avoids the need to maintain router state about separate source-destination pairs, which is important for network scalability. Chapter Conclusion Chapter 2 has presented and clarified two main models of deploying and installing quality of service in IP networks. While the traditional best-effort model has many disadvantages, later models such as IntServ and DiffServ have partly solved the problems that best-effort could not solve. IntServ follows the direction of ensuring quality of service for each separate flow, it is built similar to the circuit switching model with the use of the RSVP resource reservation protocol. IntSer is suitable for services that require fixed bandwidth that is not shared such as VoIP services, multicast TV services. However, IntSer has disadvantages such as using a lot of network resources, low scalability and lack of flexibility. DiffServ was born with the idea of ​​solving the disadvantages of the IntServ model. DiffServ follows the direction of ensuring quality based on the principle of hop-by-hop behavior based on the priority of marked packets. The policy for different types of traffic is decided by the administrator and can be changed according to reality, so it is very flexible. DiffServ makes better use of network resources, avoiding idle bandwidth and processing capacity on routers. In addition, the DifServ model can be deployed on many independent domains, so the ability to expand the network becomes easy. Chapter 3: METHODS TO ENSURE QoS FOR MULTIMEDIA COMMUNICATIONS In packet-switched networks, different packet flows often have to share the transmission medium all the way to the destination station. To ensure the fair and efficient allocation of bandwidth to flows, appropriate serving mechanisms are required at network nodes, especially at gateways or routers, where many different data flows often pass through. The scheduler is responsible for serving packets of the selected flow and deciding which packet will be served next. Here, a flow is understood as a set of packets belonging to the same priority class, or originating from the same source, or having the same source and destination addresses, etc. In normal state when there is no congestion, packets will be sent as soon as they are delivered. In case of congestion, if QoS assurance methods are not applied, prolonged congestion can cause packet drops, affecting service quality. In some cases, congestion is prolonged and widespread in the network, which can easily lead to the network being "frozen", or many packets being dropped, seriously affecting service quality. Therefore, in this chapter, in sections 3.2 and 3.3, we introduce some typical network traffic load monitoring techniques to predict and prevent congestion before it occurs through the measure of dropping (removing) packets early when there are signs of impending congestion. 3.1. DropTail method DropTail is a simple, traditional queue management method based on FIFO mechanism. All incoming packets are placed in the queue, when the queue is full, the later packets are dropped. Due to its simplicity and ease of implementation, DropTail has been used for many years on Internet router systems. However, this algorithm has the following disadvantages: − Cannot avoid the phenomenon of “Lock out”: Occurs when 1 or several traffic streams monopolize the queue, making packets of other connections unable to pass through the router. This phenomenon greatly affects reliable transmission protocols such as TCP. According to the anti-congestion algorithm, when locked out, the TCP connection stream will reduce the window size and reduce the packet transmission speed exponentially. − Can cause Global Synchronization: This is the result of a severe “Lock out” phenomenon. Some neighboring routers have their queues monopolized by a number of connections, causing a series of other TCP connections to be unable to pass through and simultaneously reducing the transmission speed. After those monopolized connections are temporarily suspended, Once the queue is cleared, it takes a considerable amount of time for TCP connections to return to their original speed. − Full Queue phenomenon: Data transmitted on the Internet often has an explosion, packets arriving at the router are often in clusters rather than in turn. Therefore, the operating mechanism of DropTail makes the queue easily full for a long period of time, leading to the average delay time of large packets. To avoid this phenomenon, with DropTail, the only way is to increase the router's buffer, this method is very expensive and ineffective. − No QoS guarantee: With the DropTail mechanism, there is no way to prioritize important packets to be transmitted through the router earlier when all are in the queue. Meanwhile, with multimedia communication, ensuring connection and stable speed is extremely important and the DropTail algorithm cannot satisfy. The problem of choosing the buffer size of the routers in the network is to “absorb” short bursts of traffic without causing too much queuing delay. This is necessary in bursty data transmission. The queue size determines the size of the packet bursts (traffic spikes) that we want to be able to transmit without being dropped at the routers. In IP-based application networks, packet dropping is an important mechanism for indirectly reporting congestion to end stations. A solution that prevents router queues from filling up while reducing the packet drop rate is called dynamic queue management. 3.2. Random elimination method – RED 3.2.1 Overview RED (Random Early Detection of congestion; Random Early Drop) is one of the first AQM algorithms proposed in 1993 by Sally Floyd and Van Jacobson, two scientists at the Lawrence Berkeley Laboratory of the University of California, USA. Due to its outstanding advantages compared to previous queue management algorithms, RED has been widely installed and deployed on the Internet. The most fundamental point of their work is that the most effective place to detect congestion and react to it is at the gateway or router. Source entities (senders) can also do this by estimating end-to-end delay, throughput variability, or the rate of packet retransmissions due to drop. However, the sender and receiver view of a particular connection cannot tell which gateways on the network are congested, and cannot distinguish between propagation delay and queuing delay. Only the gateway has a true view of the state of the queue, the link share of the connections passing through it at any given time, and the quality of service requirements of the traffic flows. The RED gateway monitors the average queue length, which detects early signs of impending congestion (average queue length exceeding a predetermined threshold) and reacts appropriately in one of two ways: − Drop incoming packets with a certain probability, to indirectly inform the source of congestion, the source needs to reduce the transmission rate to keep the queue from filling up, maintaining the ability to absorb incoming traffic spikes. − Mark “congestion” with a certain probability in the ECN field in the header of TCP packets to notify the source (the receiving entity will copy this bit into the acknowledgement packet). Figure 3. 1 RED algorithm The main goal of RED is to avoid congestion by keeping the average queue size within a sufficiently small and stable region, which also means keeping the queuing delay sufficiently small and stable. Achieving this goal also helps: avoid global synchronization, not resist bursty traffic flows (i.e. flows with low average throughput but high volatility), and maintain an upper bound on the average queue size even in the absence of cooperation from transport layer protocols. To achieve the above goals, RED gateways must do the following: − The first is to detect congestion early and react appropriately to keep the average queue size small enough to keep the network operating in the low latency, high throughput region, while still allowing the queue size to fluctuate within a certain range to absorb short-term fluctuations. As discussed above, the gateway is the most appropriate place to detect congestion and is also the most appropriate place to decide which specific connection to report congestion to. − The second thing is to notify the source of congestion. This is done by marking and notifying the source to reduce traffic. Normally the RED gateway will randomly drop packets. However, if congestion If congestion is detected before the queue is full, it should be combined with packet marking to signal congestion. The RED gateway has two options: drop or mark; where marking is done by marking the ECN field of the packet with a certain probability, to signal the source to reduce the traffic entering the network. − An important goal that RED gateways need to achieve is to avoid global synchronization and not to resist traffic flows that have a sudden characteristic. Global synchronization occurs when all connections simultaneously reduce their transmission window size, leading to a severe drop in throughput at the same time. On the other hand, Drop Tail or Random Drop strategies are very sensitive to sudden flows; that is, the gateway queue will often overflow when packets from these flows arrive. To avoid these two phenomena, gateways can use special algorithms to detect congestion and decide which connections will be notified of congestion at the gateway. The RED gateway randomly selects incoming packets to mark; with this method, the probability of marking a packet from a particular connection is proportional to the connection's shared bandwidth at the gateway. − Another goal is to control the average queue size even without cooperation from the source entities. This can be done by dropping packets when the average size exceeds an upper threshold (instead of marking it). This approach is necessary in cases where most connections have transmission times that are less than the round-trip time, or where the source entities are not able to reduce traffic in response to marking or dropping packets (such as UDP flows). 3.2.2 Algorithm This section describes the algorithm for RED gateways. RED gateways calculate the average queue size using a low-pass filter. This average queue size is compared with two thresholds: minth and maxth. When the average queue size is less than the lower threshold, no incoming packets are marked or dropped; when the average queue size is greater than the upper threshold, all incoming packets are dropped. When the average queue size is between minth and maxth, each incoming packet is marked or dropped with a probability pa, where pa is a function of the average queue size avg; the probability of marking or dropping a packet for a particular connection is proportional to the bandwidth share of that connection at the gateway. The general algorithm for a RED gateway is described as follows: [5] For each packet arrival Caculate the average queue size avg If minth ≤ avg < maxth div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 15pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:Wingdings; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:Arial, sans-serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s10 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 9pt; vertical-align: 6pt; } div.maincontent .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 13pt; } div.maincontent .s12 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 10pt; } div.maincontent .s13 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-d
• Overview of Research on Factors Affecting the Linkage of Small and Medium Enterprises with Enterprises with Direct Investment Capital

The management organization model, policy mechanism and regulations on the issuance of securities are influenced by the level of awareness, management capacity and organization of the State management agencies. On that basis, the State agencies organize the implementation of their management functions for the issuance work. The coordination between the Ministries and branches in the State management of the issuance of securities is an important factor determining the quality and effectiveness of the issuance of securities of commercial banks. The level and experience of the management team in the field of securities and the securities market, in the departments related to the reception of securities dossiers, securities operations, and issuance consultancy are good, then the State management of this activity is good. The ability to apply information technology proficiently in management will positively affect the quality and effectiveness of the issuance of securities.

- Responsibilities of State management agencies

The State management agency has the function of managing the PHCK activities on the basis of compliance and enforcement of the law of the superior state agency, operating professionally. The State management agencies must ensure the implementation of the tasks within the assigned functions and tasks. If the results are not good, not only the State management agencies will have to bear the consequences but the entire socio-economic system will also be affected. The Government has assigned the State management authority to management agencies such as the Ministry of Finance, the State Securities Commission, the State Bank, etc., so these State management agencies must carry out management activities in accordance with the provisions of law, choose the most reasonable and optimal implementation plan for commercial banks and other units related to the PHCK activities, which will create favorable conditions within the legal framework for commercial banks to effectively carry out the PHCK. On the contrary, irresponsible State management agencies, using inappropriate management methods and tools, will limit the restructuring process of commercial banks. This affects the business performance of each bank and the entire banking system.

goods and to the economy.

- Legal administrative procedures of state management agencies

Legal administrative procedures of state management agencies are the way to organize and implement state administrative management activities as prescribed in administrative law regulations, from the process to the content of conducting administrative management activities.

Legal administrative procedures must be flexible to create a reasonable process for the operation of the securities market so that commercial banks can easily implement it while improving the capacity and efficiency of State management. A reasonable process for managing securities markets will create harmony and unity in the State management apparatus, shorten the time to perform the work, and create economic efficiency for commercial banks when implementing securities markets. On the contrary, an unreasonable, cumbersome and complicated process for managing securities markets will hinder the implementation of the work. The content of managing securities markets from the issuance of regulations, licensing of issuance, inspection, supervision and handling of violations to the coordination in managing securities markets must be closely monitored and controlled to detect errors so that timely measures can be taken, creating conditions and support for securities markets entities to effectively perform their activities.

- Staff of State management agencies

Human is the decisive factor in all activities, the recruitment and allocation of appropriate human resources in the State management work for PHCK activities is one of the important tasks of the State management apparatus. Therefore, the use of a team of cadres to ensure the good performance of their duties is necessary. Based on the organizational model of the State management apparatus for PHCK activities, build a team with full factors of qualifications, capacity, and ethics. To have human resources that meet the above factors, employers first need to identify the needs, then assess the needs and carry out recruitment, followed by arranging appropriate human resources. Employers must implement good treatment regimes, conduct training and retraining of human resources after recruitment to promote the professional capacity and ability of each recruited person.

- Technology infrastructure and information systems, management data

Nowadays, the remarkable development of science and technology, especially in the field of information technology, requires the construction of an accurate, unified and efficient information system.

timely updates. The stock market's capital mobilization channel for the economy has a great impact on the national economy, so the application of modern information and data management systems plays an important role in this activity. The information technology infrastructure needs to synchronously deploy applications and modern information system infrastructure to improve monitoring capacity, contributing to the creation of a public, transparent stock market in accordance with international practices. In addition, information on state management activities needs to be public and transparent on a separate electronic information portal serving the disclosure of information on stock market activities.

The establishment of a quality and effective information technology system by commercial banks is a factor that positively impacts the management activities of state management agencies. The information provided by commercial banks must be of quality, reliable, timely, consistent and clearly presented. This helps the State Securities Commission and the State Bank of Vietnam easily access information from media channels, thereby correctly assessing the securities trading activities of banks.

2.3.2.2. Factors belonging to the management object

- Understanding of securities law and related laws for securities trading activities Understanding of securities law, securities trading regulations and legal regulations

In relation to this, mastering knowledge about risks and preventive measures, knowing how to analyze and forecast fluctuations in the stock market are important bases to ensure compliance with the law in the securities trading activities of commercial banks. This will affect the effectiveness of State management of securities trading activities of State management agencies.

- Awareness of bank compliance

The bank's awareness of compliance with the law directly affects the effectiveness of State management of the PHCK activities. Banks that are aware of complying with state regulations create conditions for State management agencies to perform their roles well. With the awareness and positive attitude of banks in complying with the law, it helps the state build a streamlined and effective State management process.

- Bank management efficiency

Good banking management plays an important role in minimizing risks and fraud in the securities business of commercial banks. Through the banking management regulations, it is possible to establish certain standards of conduct and professional ethics of members of the Board of Directors, Board of Management, Board of Supervisors and bank management staff.

banks, the subjects that play an important role in the operations of banks, the disclosure of information on the stock market and the securities trading activities. To some extent, when securities trading activities take place, commercial banks apply the banking governance regulations, the information provided to investors is more complete and accurate. Commercial banks with appropriate banking governance mechanisms and effective operations will ensure that the steps in securities trading activities take place fully and in accordance with regulations.

- Level of development of the bank

The level of development of a bank is reflected in its financial capacity, which is reflected through many indicators such as equity capital, asset quality, ability to ensure payment and system safety, ability to generate profit on equity capital, ability to generate profit on assets; ability to generate profit on equity capital. If a commercial joint stock bank conducts securities trading activities with strong financial capacity, large scale of operation, and great reputation in the market, it will have a positive impact on the State management work of State management agencies.

2.3.2.3. Factors related to the management environment

- Economic institutions

The role of the State and the role of the market in economic development of each country is different, so the formation of economic institutions is also different. Therefore, the model and management method of the stock market in general and the securities market in particular of each country are also different. The state institution directly affects the model of State management of the stock market, the structure and functions of the system of State management agencies on securities and the stock market, the issuance of policies and management tools, thereby orienting the development of the stock market in general, the stability and efficiency of securities market activities in particular. The intervention of the State management agency has created advantages, difficulties, opportunities and challenges for commercial banks to carry out capital mobilization activities through securities market. That requires issuing banks to comply with the law, adjust and adapt their securities market activities to comply with the provisions of the law and bring benefits to the bank.

- Legal environment

The State manages activities in the socio-economic system by law, the legal environment has the clearest influence on State management of most activities in the economy, including PHCK activities. A suitable and strict legal system

and consistency will stimulate the activities of entities in the economy in general, and the securities market in particular. The securities market activities of commercial banks need to be compatible between the Enterprise Law, Securities Law, Credit Institution Law, Investment Law, etc.

- Stock market

The scale and level of development of the stock market are the basis for building State management policies, and the stock market is one of the activities of the stock market, so the subject of State management of capital mobilization activities through the stock market is the stock market. Therefore, the current state of the stock market affects the promulgation and implementation of State management policies, which is the basis for the State to propose measures to overcome limitations in State management activities of the stock market, and propose solutions to improve the stock market activities of commercial banks.

- International economic integration

Opening the stock market to international integration forces economic activities in each country to fulfill commitments and comply with international law. International integration brings both practical benefits and creates risks and challenges that countries must face. Therefore, when problems arise, timely corrective measures must be taken.

If international factors appear in the stock market or in the securities trading activities, the State management policy will seek to solve related issues in a way that both brings optimal benefits and ensures the safety of the activities of related entities. State management agencies must have strict management measures from the issuance of legal documents to inspection, supervision and punishment in securities trading activities so that the capital mobilization activities through securities trading of commercial banks can be truly effective in accordance with the policies of the Party and the State in the integration process.

2.4. State management experience in capital mobilization through securities issuance of joint stock commercial banks in some countries in the world and lessons learned for Vietnam

2.4.1. State management experience in capital mobilization through securities issuance of joint stock commercial banks in some countries around the world

2.4.1.1. American experience

The US experience in State management of securities trading activities through the PHCK is presented in Pricewaterhousecoopers, Entering the United States securities markets (pages 45 to 49).

The Securities and Exchange Commission (SEC) is the highest regulatory agency of the US securities market with the following functions: Interpreting and enforcing federal securities laws; Issuing new rules and supplementing existing rules; Supervising the inspection of securities companies, brokers, investment advisors and credit rating organizations; Supervising private management organizations in the fields of securities, auditing and inspection; Coordinating the management of US securities with federal, state and foreign governments.

The organizational model and legal status of the US Securities and Exchange Commission as a Ministry in the Government. With the highest responsibility for managing the activities of the US stock market, the US Securities and Exchange Commission is an independent agency and has full authority to decide on the State management of listed securities on the stock market, market participants, activities and trading processes on the stock market. The activities of the stock market are under the two-level management of the US Securities and Exchange Commission and direct self-governing organizations such as stock exchanges, NASD (National Association of Securities Dealers) ... The US Securities and Exchange Commission is assigned the right to manage and supervise the stock market in all aspects, which creates unity in management and minimizes risks for investors, helping the US stock market in general and the stock market activities in particular to develop stably.

Securities trading in the United States is generally regulated by both federal and state laws. The main function of federal securities law is to ensure that investors are provided with accurate information, helping them make the right investment decisions. The US Securities Act was enacted in 1933, the Securities Trading Act was enacted in 1934, and amendments and supplements to these two laws were also enacted to address securities-related issues. All states have their own securities laws, provided that the state's securities laws do not conflict with the federal securities laws.

An issuer wishing to issue a security must file a security registration application, which must satisfy the requirements of the U.S. Securities and Exchange Commission, and then send it to the U.S. Securities and Exchange Commission. The basic content of the security registration application must contain the necessary information.

necessary, helping investors to make investment decisions, including: Information on the financial situation of the issuing organization (mainly accounting and financial reports); Prospectus of the issuing organization; The issuance registration must contain basic information such as: issuance method, description of securities, business issues, administration, control of the issuing organization,...

Upon receipt of an issuer's offering documents, the Securities and Exchange Commission shall review the completeness of the documents but shall not be obligated to review the accuracy of the documents. If the documents are incomplete, the Securities and Exchange Commission shall make requests for amendments or additions. If it discovers that the documents are incorrect or omit necessary information, it may order the suspension or cessation of the offering.

For securities regulation and other activities related to securities and securities markets, the US Securities and Exchange Commission is an independent agency and has full authority to make decisions in State management. The US Securities and Exchange Commission supervises the entire securities market management system and its participants through self-regulatory organizations such as the Stock Exchange, the National Association of Securities Dealers (NASD), depository, clearing and settlement companies. If the US Securities and Exchange Commission finds that self-regulatory organizations are not performing their functions properly or are not appropriate, the US Securities and Exchange Commission will directly intervene to supplement the management deficiencies.

The Securities and Exchange Commission, through its Office of Compliance Inspection and Examination, conducts inspections and supervision of these organizations. These inspections ensure compliance with the law, and if any deficiencies are found, they will issue a “deficiency letter” identifying the problem that needs to be corrected, quickly correcting “gaps” in compliance in a flexible manner without having to deal with them rigidly. These self-regulatory organizations are responsible for issuing regulations governing issuers.

The Securities and Exchange Commission (SEC) oversees the issuance of securities through its Division of Trading and Markets. Because the SEC's function is to administer and supervise the enforcement of securities laws and to take action against violations,

ensure that securities and securities market laws are strictly and fairly complied with. The US Securities and Exchange Commission has full authority to manage and supervise securities activities in the primary and secondary markets, and has the right to inspect, investigate, and prosecute violations in these activities.

Pricewaterhousecoopers, Entering the United States securities markets (page 9) stated that: In addition to registering with the US Securities and Exchange Commission, the securities organization must comply with the regulations on securities registration under state law. State law will determine the type of securities that the organization is preparing to issue to suit the needs of investors, in addition, state law also stipulates specific responsibilities for violations in securities on the basis of the Securities Act of 1933.

The Securities and Exchange Commission does not have the authority to regulate or control prices on the stock market, so to ensure the stock market operates safely and fairly, the Securities and Exchange Commission prescribes detailed and clear regulations for issuers and intermediaries. In addition, the Securities and Exchange Commission requires issuers to publicly disclose all information related to the issued securities and closely monitors participants in the issuance market through the Department of Investment Management.

At the same time, the US Securities and Exchange Commission provides adequate protection for investors through disclosure requirements and supervision of market participants, especially through the activities of the Department of Investment Management. In order to form a transparent, efficient and dynamic capital market, ensuring fair competition in the securities market, the US Securities and Exchange Commission requires issuers to publicly disclose their financial situation and other information; organizations distributing securities to the investing public must honestly disclose their business situation, the securities being sold and the risks involved when investing.

Private placement activities are exempted from registration with the Securities Commission under the following regulations: The issuer conducts a private placement offering of securities worth US$1 million within a 12-month period, these securities are restricted from transfer and investors must hold them for at least 6 months or 1 year (depending on the type of issuer conducting the private placement); The issuer conducts a private placement offering of securities worth US$5 million within a