As We Know Indian Stock Market Is One Stop Destination Where Investors Get Opportunity To Generate Avenues. Are You A Beginner In Stock Market Or New To Investing? It is Important That You Know The Basic Types Of Instruments Available For Investors.
Financial Instruments Are Detailed Documents That Issues The Assets That Can Be Traded And Investors Can Generate Income.
Investors Invest Money In Stock Market To Create Wealth For Their Secured Future. If You Want To Generate Quick Gains It’s Better To Invest In Short-Term- Intraday Trading.
It’s Better To Understand The Stock Market, You Must Go With Good Result And Understand The Basic Terminologies Of Indian Stock Market.
I Am Sure, Not Many Investors Are Aware Of The Types Of Financial Instruments Traded In Our Stock Exchange.
In This Blog, You Will Learn About The Different Financial Instruments Traded In The Stock Market. Financial Instruments Are Considered As A Contract Between Two Parties, The Investors And The Company.
Investors Invest Money In Stock Market To Create Wealth For Their Secured Future. If You Want To Generate Quick Gains It’s Better To Invest In Short-Term- Intraday Trading.
It’s Better To Understand The Stock Market, You Must Go With Good Result And Understand The Basic Terminologies Of Indian Stock Market.
I Am Sure, Not Many Investors Are Aware Of The Types Of Financial Instruments Traded In Our Stock Exchange.
In This Blog, You Will Learn About The Different Financial Instruments Traded In The Stock Market. Financial Instruments Are Considered As A Contract Between Two Parties, The Investors And The Company.
TYPES OF FINANCIAL INSTRUMENTS IN OUR STOCK MARKET
EQUITIES
DERIVATIVE
BONDS
MUTUAL FUNDS
Let’s Get Started,
EQUITIES
Equities Are Majorly Popular Financial Platform In The Stock Exchange. There Are Huge Investors Across The Globe Who Invest In The Equity Market And They Create Huge Wealth For Their Future.
As Most Of Us Know Stock Market Is One Of The Major Investing Options Among Investors. The Process Of Buying Shares Of A Company Results Are A Partial Owner Also Known As Shareholders.
As We Know Stock Market Is A Huge Popular Platform that has Popular Prices that Can Multiply The Capital Through The Shares. Equities Are Popular Because They Are Liquid In Nature. In Equities, You Can Sell Your Shares In The Indian Market, Whenever You Need Cash. As We Know Equities Are A Great Option For Generating Regular Income. So, We Must Keep One Main Point In the Loop Fundamental Analysis Is Useful For Long-term Investors And Technical Analysis For Short-Term Trader.
DERIVATIVE
Derivative Is Another Popular Source Of Financial Instruments, That Are Traded At Indian Stock Exchange. Derivative In Financial Instruments Derives A Given Value From An Underlying Assets Or A Bunch Of Assets.
What Are Underlying Assets?
It Can Be In The Form Of Stocks, Currency, Interest Rate Etc… They Are All Underlying Assets. Under Derivative- Future And Options Contracts Are The Popular Source Of Financial Instruments In the Stock Exchange Here, You Are Contracts You Will Have Obligations To Buy Or Sell Any Kind Of Assets At A Determined Price In the Future. These Sort Of Contracts Should Be Delivered At A Predetermined Price.
Let’s Check About Options
It Is Similar To The Future Stocks, The Value Of Options Depends On Underlying Products Securities Such As Stocks, Market Index Etc..
Investors Have An Opportunity And No Obligation To buy or sell the Assets On Any Specific Price And Specific Date.
BONDS
At Any Time, Private Companies And Government Sector Company Requires Capital. Bonds Are Issued With A Specific Rate Of Interest. They Are Similar To Loan And Must Be Repaid Completely Within The Period Before The Time Of Maturity Duration. You Can Purchase Bond From The Stock Exchange.
MUTUAL FUNDS
These Are Financial Instruments That Collect Money In The Form Of Various Securities. Mutual Funds Include Equities, Money Market Instruments, Bonds Etc.. You Can Purchase Mutual Funds Through The Stock Exchange. Here, By Investing In Mutual Funds You Will Get Returns In Units And The Profits Will Be Distributed Among The Unit Holders In The Wanted Proportions Of The Units Held. You Can Expect Great Returns If You Hold It For The Long Term, The Performance Of Mutual Funds Is Good Over The Years.
