Originally Posted by Sumant
A 'Future' is a contract to buy or sell the underlying asset for a specific price at a pre-determined time. If you buy a futures contract, it means that you promise to pay the price of the asset at a specified time. If you sell a future, you effectively make a promise to transfer the asset to the buyer of the future at a specified price at a particular time.
* SAFE
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What are Options contracts?
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Options contracts are instruments that give the holder of the instrument the right to buy or sell the underlying asset at a predetermined price. An option can be a 'call' option or a 'put' option.
A call option gives the buyer, the right to buy the asset at a given price.
Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here the buyer has the right to sell and the seller has the obligation to buy.
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What is Debenture?
The term is used in corporate finance for a medium to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note.
Source - http://en.wikipedia.org/wiki/Debenture
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What is insider trading in shares? I was reading one news about one guy, who did insider trading, so just curious about this term :-).
Insider trading is the trading of a company's stock by individuals with potential access to non-public material information about the company. Eg. If a company's stock is trading at 500 and someone learns that the company will be taken over for 650 a share, that information would be material.
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What is Stop Loss in shares? How to put stop loss in ICICI Direct?
I am new to investment, have two basic queries on demat.
1- What is demat?
2- Is demat compulsory?
A demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.
If you want to trade than demat account is mandatory. If you just want to buy and keep shares, than you can keep as a paper-based physical stock shares (without demat account).2- Is demat compulsory?
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