Abstract: With establishing the second board market of our country round the corner, it seems increasingly important for us to study the formation environment of second board market. The final aim to study formation environment of second board market is to extract the necessary formation conditions from complicated formation environment of it. In this paper, we begin with defining “formation environment of second board market", then analyze histories of formation of second board market in several countries by both horizontal and vertical angles. The kernel of the paper is originally bringing about the use of systematic analysis to help study of the formation environment of second board market, in such a way we find a method, which can evaluate formation environment in quantity. In the last part, we try to evaluate the formation environment of our country by use of this method.

Key words: secondary board market, formation environment, systematic analysis, evaluation