I have two basic questions. Please answer when you have time -
What are Futures?
How they are different from shares?
Thanks in advance!
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
Self Appointed Financial Expert
What are Options contracts?
The road to success??.. Is always under construction.
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
Anything dropped on the floor will roll over to the most inaccessible corner.
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