The main investment instruments offered by brokers

From Cyberlaw: Difficult Issues Winter 2010
Revision as of 14:22, 21 January 2022 by 192.168.10.74 (talk) (Created page with "Stock Shares - one of the most common and simple investment instruments, a security, a share of ownership of a company, securing the rights of its owner (shareholder) to recei...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

Stock Shares - one of the most common and simple investment instruments, a security, a share of ownership of a company, securing the rights of its owner (shareholder) to receive part of the profit of a joint-stock company in the form of dividends, to participate in the management of a joint-stock company and to part of the property remaining after its liquidation proportional to the number of shares owned by the owner. Find out more on the site. ETF ETF (exchange-traded fund) - an exchange-traded investment fund - an index fund, the shares (shares) of which are traded on the stock exchange. It differs from ordinary stocks in that it is a highly diversified instrument. Profitability from ETFs depends on the investment strategy that the investment fund has chosen. Futures Futures is a kind of derivative “secondary” financial instrument, an exchange commodity. A futures is a contract for the purchase or sale of a certain primary instrument with a deferred performance of obligations. A security, currency, raw materials can act as a primary or basic instrument. The futures price varies depending on the market situation. The remaining parameters of the asset are typical. This is the delivery time, the quantity of goods in the lot, its quality or brand. Thus, the buyer and seller of the futures assume the obligation to fulfill the contract within the agreed time. The value of the asset itself by this time in the market may change, but this can no longer affect the terms of the transaction. A futures contract has an expiration date. Unlike stocks, which don't have "expiration dates". Bonds Bonds are, in fact, a loan issued in a security. They are issued (issued) either by a company that raises funds, or by the state. People buy bonds and thus lend money to that company or government, expecting to receive a certain income. Bonds can be secured or unsecured. Secured bonds are backed by a pledge of the company's movable or immovable property: if the bond is not paid, the company's property may be confiscated to pay off the debt. Unsecured loans are not backed by special collateral, so creditors have no additional protection. Currency / Forex Forex is a system of sustainable economic and organizational relations that arise when carrying out transactions for the purchase or sale of foreign currency, payment documents in foreign currencies, as well as operations for the movement of capital of foreign investors / You can also invest money in foreign currency through a broker. It is advisable to buy a currency that you can use in the future. precious metals Precious metals, unlike stocks and bonds, are less risky investments. You can invest in gold (if you are considering the most liquid way to store money), silver (if you want to make a quick profit), and platinum (worth on par with gold, and even exceed its price during technological booms). You can invest in coins, bullion or a metal account. Cryptocurrencies Cryptocurrencies are very volatile, so they can be a good investment tool. But keep in mind: sharp jumps in the price of cryptocurrencies can go to you both in plus and in minus. High-yield investments always carry high risks. CFD CFD (Contract For Difference, or contract for difference) is an agreement between the seller and the buyer, which stipulates the transfer of the difference between the value of an asset at the time of the conclusion of the contract and its value at the end of the contract.