Advance program Banking Academy GRADUATION THESIS Topic: Improve the quality of stock brokerage activities at VPS Name : Vu Anh Quan Class : K23CLC -TCA Instructor : Assoc Prof. Tran Thi Xuan Anh School year : 2020-2024 Hanoi, April 17, 2024 Advance program Banking Academy GRADUATION THESIS Topic: IMPROVE THE QUALITY OF STOCK BROKERAGE ACTIVITIES AT VPS Name : Vu Anh Quan Class : K23CLC -TCA Instructor : Assoc Prof. Tran Thi Xuan Anh School year : 2020-2024 Hanoi, April 17, 2024 Contents Lists of Figure and Table. The urgency of the Study.
Research objective and questions. Subject and scope of the study. 7 CHAPTER I: THEORETICAL BACKGROUND OF SECURITIES COMPANY AND QUALITY OF BROKERAGE ACTIVITIES. Definition of securities company.
Role of securities companies. Operation of securities firm. Brokerage activities of securities companies. The definition of brokerage.
Characteristics of brokerage activities. Quality of stock brokerage activities. Indicators for evaluating the quality of brokerage activities. Factors affecting the quality of stock brokerage activities.
18 CHAPTER II: RESEARCH RESULTS. Overview of VPS Securities Joint Stock Company .2 Brokerage activities at VPS. Evaluate the quality of brokerage activities at VPS. VPS's reputation and scale of operations.
Facilities and technology level. Internal control of VPS. Overall assessment on the VPS joint stock company’s service quality 33 2. The cause of the limitations.
34 CHAPTER III: SOLUTIONS TO IMPROVE THE QUALITY OF STOCK BROKERAGE ACTIVITIES AT VPS SECURITIES JOINT STOCK COMPANY. Orientation to improve the quality of stock brokerage services at VPS. Solutions to improve the quality of stock brokerage services at VPS. Solutions to improve customer trust.
Solutions to improve VPS's service capacity. Solutions to improve the quality of stock brokerage service system management organizations. Specific solutions for diversifying products and improving stock brokerage service processes. 43 DECLARATIONS Here, I declare that this graduation thesis on the topic "Improve the quality of stock brokerage activities at VPS" was written by me and all the data and information used in this thesis are cited in the references section.
I will take full responsibility for this thesis. Sign Vu Anh Quan Date 1 Lists of Figure and Table No of Table Name of the table Page 1 VPS’s revenue 21 2 Market share 22 2 ACKNOWLEDGEMENT Firstly, I would like to express my heartfelt thanks to my supervisor Assoc Prof. Tran Thi Xuan Anh, for her invaluable support and guidance. With her professional expertise, her conscientious, her care and her encouragement, this work was possible.
I also want to extend my appreciation to all of the lecturers at the Banking Academy for generously sharing their knowledge and helping me throughout my thesis. Furthermore, I acknowledge the contributions of my classmates, whose insights and feedback have helped to shape this research. Last but not least, I am deeply grateful to my parents for their unwavering support and encouragement throughout my 4 years in university which has helped me to slowly achieve my goal and complete this thesis. The urgency of the Study The stock market is a fundamental part of the modern market economy.
Most developed countries with strong economies have stock markets. Stock market movements strongly reflect public opinion and can also be understood as investor’s opinions on market prospects and economic trends. The market scale is increasingly expanding, leading to the development of intermediaries and financial institutions, especially securities companies. In addition, the number of investors participating in the market also increased significantly.
The level of development of a brokerage company is not only measured by the size of its market share but also by the quality of service it provides to customers. This is also an important factor contributing to the sustainable development of the market. According to the state Securities Commission of Viet Nam as of the end of February 2024, Vietnam had nearly 7.5 million individual securities accounts, equivalent to about 7.5% of the population so it means that more and more people interest in stock market nowadays. With the number of investors continuously increasing, the number of securities companies will not stop at the current number.
Currently, VPS still affirms its leading position in market share among securities companies. By the end of the fourth quarter of 2023 and the whole year 2023, VPS once again made its mark on the gold board when continuing to achieve the largest market share in the stock brokerage segment on both HOSE and HNX exchanges. Specifically, VPS reached a market share of 19.92% in the fourth quarter of 2023 and 19.06% for the whole year on HOSE, an increase of 5.11% over the same period last year and 1. However, in order for the company to continue to make new strides and maintain its current leading position, the company team needs to constantly develop and innovate service quality to retain and attract more customers.
products during the current volatile market period. 4 During the internship in VPS and have a chance to experiencing their working’s environment and operating activities, I realize that there’s still some remaining limitations of the brokerage activities. Based on the above practical context, I decided and selected the topic” Improve the quality of stock brokerage activities at VPS”. With this topic I suppose it will help administrators partly understand customers’s thoughts and come up with appropriate service policies to help customers have the best experience.
Research objective and questions 2. Research objective In this essay, I will analyze the current state of operations and brokerage services at VPS, thereby pointing out positive points and limitations from the perspective of an investor using VPS services. To actualization the topic, I will need to complete the following parts: Which is systematize the theoretical basis related to brokerage activities efficiency and qualitative criteria to evaluate the effectiveness of brokerage activities, collect database and use suitable research methods and finally analyze and evaluate the current state of efficiency of brokerage activities at VPS securities company then provide appropriate and feasible solutions to improve operations and improve the efficiency of brokerage activities at VPS 2. Research questions What is the stock trading situation at VPS Securities Joint Stock Company? What factors affect stock trading activities at VPS Securities Joint Stock Company? Propose solutions that can help develop stock trading activities and improve service quality at VPS Securities Joint Stock Company? 5 3.
Subject and scope of the study 3. Subject Quality of stock brokerage activities at VPS. Scope of the study Research on brokerage activities at VPS Securities Joint Stock Company and proposals and solutions to develop the quality this activity. In addition to clarifying and understanding the assignment, the writer also researched stock market activities related to brokerage activities.
Time frame of research is from 2020-2024. Research Methodology This article uses qualitative methods to collect, synthesize and present data, then uses methods to analyze the collected data. Data collected method: Collect figures and data from the Internet and financial reports, annual reports from stock magazines, investment magazines, stock channels, etc. Books and newspapers are systematized and recorded in reports by accessing the relevant websites of the National Securities Commission, Department of Statistics, National Supervisory Commission, etc.
- In addition, the author also collected information from many foreign websites to expand the persuasiveness of this topic. Data processing method: Using the descriptive statistical techniques presented in the table showing the operating profits of brokerage businesses, I need to have selected and calculated statistics that can be used to explain the results obtained. - Comparison with actual data: Competition is unavoidable because the securities industry has many enemies and comparison is inevitable. To evaluate the position of securities companies in the market, the author uses a comparative method to highlight the advantages and 6 outstanding performance of securities companies.
- There are also tables and graphs to make the numbers clearer and easier to understand. Thesis organization In addition to the introduction and conclusion, the content of the research paper includes three main chapters: Chapter 1: Theory of securities company and brokerage activities at securities company Chapter 2: Database and research methods Chapter 3: Research results on the quality of brokerage activities at VPS securities company CHAPTER I: THEORETICAL BACKGROUND OF SECURITIES COMPANY AND QUALITY OF BROKERAGE ACTIVITIES 1. Definition of securities company According to decision No. 27/2007/QD-BTC we can simply understand that a securities company is an organization operating with legal status and a business license.
Securities trading license is issued by the State Securities Commission. Securities trading activities can be some or all of the following activities: securities trading, securities brokerage, securities investment consulting, and securities underwriting. Role of securities companies Securities companies play a very important role in our country's developing economy today, especially in the stock market as an intermediary for buying and selling stocks and distributing capital to help promote market liquidity make the market grow more and more. 7 According to luatminhkhue, securities company have many important roles for different entities in the Vietnamese economy.
For businesses We often hear the phrase IPO or Initial Public Offering, which is understood as a business issuing shares to the public for the first time. Issuing shares of a business is an activity to mobilize capital, all of these activities are carried out through an intermediary, which is securities companies. In business stock issuance deals, securities companies play a consulting and underwriting role to ensure that sales transactions take place smoothly. For individuals who are investors One of the first steps for investors to trade on the stock exchange is to have a stock trading account.
These hidden accounts will be opened at securities companies. Securities companies also have the role of providing assessments and financial reports on the "health" of the business to give investors an overview before making investment decisions. For the stock market A securities company is an intermediary unit but also an indispensable unit and component to constitute the stock market. In the primary market, the role of securities companies for IPO businesses is to issue and price shares at the first offering.
In the secondary market, the role of securities companies is to regulate the market through self-trading activities, including increasing income for their own companies by creating liquidity value and regulating stock prices. For management agencies Management agencies must have the function of observing the securities market and making reasonable adjustments in accordance with current regulations of the Securities Law and State agencies. These activities of the management 8 agency are partly based on information about the stock market provided by securities companies. The information provided by securities companies can be information about stocks, transaction information, dividends, industry and business data.
Securities companies will have to cooperate with regulatory agencies to limit or prevent misconduct in the securities market that may be caused by individuals or organizations. Securities companies can be considered an important sanction in the stock market. Operation of securities firm According to Article 72, Securities Law 2019, it is stipulated that securities companies are licensed to perform one, several or all of the following business operations: - Stock brokerage; - Proprietary trading; - Underwriting securities; - Securities investment advisory. Brokerage Stock brokerage is the act of a securities company acting as an intermediary to buy and sell securities for customers.
Securities Investment Advisory Securities investment consulting is a securities company providing investors with analysis results, publishing analysis reports and recommendations related to securities. Proprietary trading Self-trading of securities means a securities company buying or selling securities for itself. Underwriting Securities underwriting is a commitment to the issuer to purchase part or all of the issuer's securities for resale or to purchase the remaining undistributed securities or to make maximum efforts to distribute the number of securities to be issued by the issuing organization.