Everyone wants a Share of the Markets - Investing in the Modern Era Explained

The most-talked about financial products are definitely the stock market products. Especially in the last couple of years the stock markets have become the hottest topic of the country and almost everyone wants to invest in these products. 

Let us hear more about the stock market in the next video

Equities

It refers to an investment in the company’s equity stock for becoming a shareholder of the organization.

Derivatives

Derivative instruments are capital market financial instruments whose values are determined from the underlying assets, such as currency, bonds, stocks, and stock indexes.

The four most common types of derivative instruments are forwards, futures, options and interest rate swaps:

• Forward: A forward is a contract between two parties in which the exchange occurs at the end of the contract at a particular price.

• Future: A future is a derivative transaction that involves the exchange of derivatives on a determined future date at a predetermined price.

• Options: An option is an agreement between two parties in which the buyer has the right to purchase or sell a particular number of derivatives at a particular price for a particular period of time.

• Interest Rate Swap: An interest rate swap is an agreement between two parties which involves the swapping of interest rates where both parties agree to pay each other interest rates on their loans in different currencies, options, and swaps.

Hope now you have a basic understanding of the stock market. Moving on in the next segment you will get insights on Real estate as an investment option.