Securities in Stock Market
1. Equity Shares: Represent ownership in a company. Investors buy shares to gain equity ownership and potential dividends.
2. Preference Shares: These shares provide dividends before equity shareholders and have a fixed rate of return.
3. Debentures and Bonds: Fixed-income instruments that pay interest. Debentures are issued by companies, while bonds can be government or corporate-issued.
4. Derivatives: Financial contracts whose value is derived from underlying assets (stocks, indices, commodities). Common derivatives include futures and options.
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