Derivatives are used for the following: Hedge or mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying position and cancels part or all of it out Create option… Read more
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common variants of derivative contracts
Some of the common variants of derivative contracts are as follows: Type 1: Forward Contracts Forward contracts are the simplest form of derivatives that are available today. Also, they are the oldest form of derivatives. A forward contract is nothing… Read more
DO YOU KNOW WHAT IS DERIVATIVE?
Derivatives are contracts between two parties that specify conditions (especially the dates, resulting values and definitions of the underlying variables, the parties’ contractual obligations, and the notional amount) under which payments are to be made between the parties.The assets include… Read more
Commercial Paper (CP)
Commercial Paper (CP) is an “unsecured money market instrument issued in the form of a promissory note”. These are not usually backed by any form of collaterals and is allowed to be issued only by corporate with high quality debt… Read more
TOP 5 BENEFITS OF CERTIFICATES OF DEPOSIT (CDS)
TOP 5 BENEFITS OF CERTIFICATES OF DEPOSIT (CDS) With so much uncertainty in the financial market, being able to rely on a tried-and-true method to growing wealth is what many Americans need. Considered to be one of the safest investments,… Read more
The Difference Between a Certificate of Deposit and a Fixed Deposit
The Difference Between a Certificate of Deposit and a Fixed Deposit There is no difference between a certificate of deposit and a fixed deposit. They are interchangeable terms for a time deposit, which is money deposited with a bank or… Read more
Certificate of Deposit?
India introduced Certificates of Deposit (CDs) in 1989 to increase the range of money market instruments in the country and thereby give investors greater flexibility in terms of utilization of their short-term funds. What is a Certificate of Deposit? A… Read more
Indian stock market types – primary market and secondary market
primarily there are two types of stock markets – the primary market and the secondary market. This is true for the Indian stock markets as well. Basically the primary market is the place where the shares are issued for the… Read more
What Is a Government Security?
Governments need money to operate, and just like people and businesses, they will borrow money when needed. In this lesson, you’ll learn about government securities. What Is a Government Security? A government security is a bond or other type of… Read more
reforms in Government securities market
let us make in-depth study of the reforms in Government securities market. The Government securities market will gradually emerge as a vibrant segment of the Indian capital market. Therefore, major reforms have been carried out in Government securities market since… Read more