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Are funds safe in a stock account? Where is the money in the account?

Stock account refer to the account books established by securities registration and settlement institutions for investors, which are used to accurately record the types, names, quantities, corresponding rights and changes of securities held by investors. It is an important certificate to identify the shareholder’s identity, has the legal effect of proving the shareholder’s identity, and is also a prerequisite for investors to conduct securities transactions.

The money in the stock account is absolutely safe. What is unsafe is our investment behavior. For investors, securities companies and banks have signed a depository system, and when investors settle transactions with securities companies, they must submit them to the bank for depository. The bank depository is responsible for the deposit, withdrawal and settlement of investor funds, and the transaction process for securities is the same as before. Through the three-party depository, the shareholders’ securities accounts and capital accounts are managed separately, and the settlement and delivery procedures of the securities companies’ funds are handed over to the depository bank to prevent the securities companies from misappropriating settlement funds.

Therefore, the funds in the stock account are absolutely safe, which means that this part of the funds exists in the bank instead of the securities company, and the funds in the stock account can also receive interest income from current savings. Securities companies transfer the interest to the capital account every quarter, which can be queried from the capital details, and the interest is exempt from personal income tax.

In fact, securities accounts are also custodial, and securities companies only serve as members of the exchange to provide brokerage services for customers. Accounts for SSE Securities are recorded at the time of account opening, while those for SZSE Securities are transferred to the custodial place through securities company seats. In fact, stocks are deposited in China Securities Depository and Clearing Corporation, that is to say, stocks and funds have nothing to do with securities companies, and securities companies are only intermediaries.

Funds in the stock account can only be transferred to the bound bank account by bank-securities transfer (stocks can only be transferred on the next trading day), which means that even if your stock account is stolen and the stock is sold, this Money can also only be transferred to your own bank card, which is very unlikely unless someone steals both your stock account password and your bank account password.

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