obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. • American Option: American option is the option that can be exercised anytime during its life. The majority of exchange-traded options are American. American options allow investors more opportunities to exercise the contract • European Option: An option that can only be exercised at the end of its life, at its maturity. European options tend to sometimes trade at
Words: 2945 - Pages: 12
China had a stock exchange market called the “Tianjin” Stock exchange market. However, the market was shut down in 1952 because of political acts that targeted capital markets and capitalists. After that date, the capital market remained close until the “opening up” policy set in. At that point, the stock markets reopen in the early 90s (Shanghai Stock Exchange and Shenzhen Stock exchange). China’s capital markets are comprised of the stock and bond markets, securities investment funds, and futures.
Words: 2384 - Pages: 10
A Gentle Introduction to the World of Investing (1351 Words) The United Nations does it. Governments do it. Companies do it. Fund managers do it. Millions of ordinary working people – from business owners to factory workers – do it. Housewives do it. Even farmers and children do it. ‘It’ here is investing: the science and art of creating, protecting and enhancing your wealth in the financial markets. This article introduces some of the most important concerns in the world of investment. Your
Words: 1399 - Pages: 6
stocks on exchange markets. The two most familiar exchanges are NYSE and NASDAQ. The New York Stock Exchange is a Euro-American national security exchange that operates multiple security exchanges. It maintains a leading position in global exchange products market. In 2011, NYSE-Euronext led the market in Exchange Traded Products with more than 450 new ETN listed. The market’s impressive growth has been a success from their rests of structuring nearly 85% of their leading venue for Exchange Traded
Words: 686 - Pages: 3
is a framework for describing set of markets, organisations, and individuals that engage in the transaction of financial instruments (securities), as well as regulatory institutions. The basic role of Financial System is essentially channelling of funds within the different units of the economy – from surplus units to deficit units for productive purposes. 1.1 COMPONENTS OF FINANCIAL SYSTEM: There are mainly three components of financial system. These are: I. Financial
Words: 4873 - Pages: 20
Why commodity markets were started The first recorded instance of futures trading occurred with rice in 17th Century Japan. There is some evidence that there may also have been rice futures traded in China as long as 6,000 years ago. Futures’ trading is a natural outgrowth of the problems of maintaining a year-round supply of seasonal products like agricultural crops. In Japan, merchants stored rice in warehouses for future use. In order to raise cash, warehouse holders sold receipts against
Words: 2732 - Pages: 11
Content Weight (%) Page No. LIST OF ABBREVIATIONS .....................................................................................................5 TRADING………………………………………………………….30………………………….7 1.1 INTRODUCTION .....................................................................................................................7 1.2 NEAT SYSTEM .....................................................................................................................9 1.3 MARKET TYPES .....
Words: 86982 - Pages: 348
Australian financial system are □ Financial instruments □ Financial markets □ Financial institutions Functions of a Financial System • Facilitates the efficient flow of funds between lenders and borrowers via financial instruments • Allows individuals to allocate funds according to current and future consumption • Facilitates the implementation of government monetary policy Financial Instruments • Attributes of financial instruments □ Return or yield
Words: 14903 - Pages: 60
* A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is a mechanism that deals with the lending and borrowing of short term funds (less than one year).As per RBI definitions “ A market for short terms financial assets that are close substitute for money, facilitates the exchange of money in primary and secondary market”. * 2. It doesn’t actually deal in cash or money but deals with substitute of cash like
Words: 459 - Pages: 2
INTRODUCTION Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized cap-ital markets are monitored by the government; new issues are
Words: 7488 - Pages: 30
