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Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts based on some popular products such as cotton, soybeans and oil and financial assets such as stocks and bonds.
The subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments. The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.
Financial innovation and reform of futures market and industry go hand in hand in many aspects, such as regulatory system reform, product expansion, business innovation and so on. In the aspect of regulatory system reform, it is mainly to promote the reform of handling fees, hedging, arbitrage, margin and position limit in the futures market to improve market efficiency.
Stock is a part of the ownership of a joint-stock company and a certificate of ownership issued by a joint-stock company. It is a kind of securities issued by a joint-stock company to all kinds of shareholders, as a shareholding certificate to obtain dividends and bonuses.
Stocks are long-term credit instruments in the capital market and can be transferred and traded. With it, shareholders can share the company's profits, but also bear the risks brought by the company's business mistakes. Each share represents the shareholder's ownership of the basic unit of the enterprise. Every listed company will issue shares.
Every stock in the same category represents the equal ownership of the company. The share of ownership of the company owned by each shareholder depends on the proportion of shares held by each shareholder to the total share capital of the company. Stock is an integral part of the capital of a joint-stock company and can be transferred and traded. It is the main long-term credit tool in the capital market, but the company cannot be required to return its capital contribution.
Financial assets are the symmetry of physical assets, which refers to assets owned by units or individuals in the form of value. Claiming that physical assets are an intangible right.