Welcome to Money Online Investment
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Clean the beaches today for a better tomorrow!
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financial instruments traded in stock market
Financial instruments traded in stock market include: Bonds, Shares, securities and insurance. A bond is where a person loans money from a company or government. The loaner borrows it for a fixed period of time and makes sure it is return on agreed time. Shares are bought by an individual in a certain business, this normally is for a certain percentage and then full transfer of ownership is done when agreement is done and then a shareholder starts getting monthly dividends depending on how much was speculated to receive. Securities include the guarantee of a said bought product-that is how long it is expected to last and it does not, it's to be return and owner gets another one. An insurance is where a specific company covers loss or damage for damaged properties. There are monthly premiums paid for insured products.
There are many instruments that have all their strengths and weaknesses. Here is a quick overview of the products available :
ETFs and Trackers: Since the arrival of CFDs, they have to be avoided because the fees are much higher than the CFDs because you pay twice: the ETF broker and ETFs and Trackers. The issuer pays with a higher spread than brokers cfd ... In short, they survive because they can be included in a PEA, which is not the case for CFDs.
The Warrants: to forget definitively ... and it is a former trader warrant that tells you ... I have always had problems with the issuers who when volatility no longer rub warrants. So, I still remember, I had warrants at 0.10. The market goes in my direction brutally, the warrants stop coasting for 3 hours! Impossible to sell. The market turns and miracle the warrant is 0.11. I see every week traders warrants screaming on forums ...
The SRD (which is not a financial instrument but a cash facility): for French equity investors only, the deferred settlement service (srd) is an attractive alternative to CFDs because it proposes a maximum lever of 5. This has the advantage of guarding yourself (you will not be able to override the lever 5). Only default, you are limited to French equity markets, there is no point in hoping to have Google, oil, indices in your portfolio. Note that beginners are usually given a lever 3