Research On Public Company's Investment In Security Agent

Since 1999, There have been about 160 public companies who invested in 50 local security agents to share their ownerships, some of those investments were even up to the percentage of controlling the target security agents. Three main kinds of those stock investments are buying stock share from market or other investors, investing directly and initiating and establishing new security agent. The main characters of it are that mid or small size security agents are favorable target, portfolio were taken and most public company preferred to invest into their security agent who used to help them issue stock.Besides the malpractice coming up with the stock investments, the author analyzed the intention of those public companies investment into security agents, pertinent financial problems and law problems in this dissertationRegarding the reality of stock investment into security agents by public company, the author pointed out that under current situation, public company should focus on their main business fields without any blind investments into virtual economy, and the security agents should build up their financial strength and extend their financing channel to meet the coming international competition.With the case of investment into Guangfa Security by Liaoning Chengda, this dissertation analyzed and discussed the financial problems, legal problems brought out by those stock investments. Guangfa miracle was broken up by the shatter of China(?)stock market. But the actions taken by Liaoning Chengda and Guangfa Security and their achievements under present situation will instruct and enlighten those coming stock investments.At the end of this dissertation, the author presented suggestions on those necessary legal regulations to be taken under current situation.