Usually refers to the stock exchange, commodity futures exchange, financial futures exchange and foreign exchange market and other places where funds are traded.
What is capital?
According to Marx's political economy, capital is a kind of value that can bring surplus value.
According to the viewpoint of modern economics, capital generally refers to all tangible capital and intangible capital invested in the process of reproduction; Financial capital and human capital.
In other words, capital is an investment that can bring benefits.
What is a transaction?
Trade originally meant barter, but now it generally means buying and selling all goods.
What is a commodity?
In traditional economics, commodities refer to those labor products produced for exchange, which have the duality of use value and commodity value.
In modern economics and sociology, commodities generally refer to all commodities and affairs that can be bought and sold in the market.
What is a market?
Traditionally, the market is a place for commodity trading.
In modern society, the market is still a place for commodity trading, but the concept of modern capital market is very different from the traditional commodity market, both in form and content, because the concept of commodity has changed.
The core functions of the capital market are financing, avoiding risks and discovering value.
"Financing" is expressed in the language of economics? The market function, if used in a more popular way, is also two words: "borrowing money", and a better way is: "circling money"!
Financing is the most basic function of the capital market, and other functions are derived from this basic function. The beauty of financing through the capital market is that a large amount of private capital can be obtained without risk, and the risks of enterprise investment and operation are subtly passed on to investors. If financiers profit from investment and operation, the biggest beneficiaries are naturally financiers and operators, and financiers may also get a slice of it. But in fact, it is difficult for investors in the American market to obtain operating profits, and they can only rely on the value discovery of stocks and securities. If the financing party fails to operate and leads to losses, what is the worst thing? However, it is an investor, not only the investment income is hopeless, but even the principal may not be returned.
Investors originally wanted to make money in the capital trading market, but as a result, they lent their capital to financiers we didn't know well. We basically know nothing about their moral standards, credit degree, business ability and other very important information. Investment capital market not only has no security of principal and fixed interest, but also has the possibility of losing everything. Therefore, before making such a trading decision, investors should really pay more attention to the eye-catching slogan that every market must have: the market is risky, and investment must be cautious! Think about it: what does this mean?
Another core function of the capital trading market is to be used as a hedging tool. The futures market is a typical place to hedge investment risks in the spot market. Since someone wants to release the risk, naturally someone needs to absorb it. Therefore, there are mainly two types of traders in the market, one is risk releaser, such as hedgers in the futures market, hedge funds in the securities market and listed companies. The other is risk absorber, such as speculators in the futures market and ordinary investors in the securities market.
If you are not a manufacturer, financial group or investment institution engaged in hedging risks, then you must be an investor and speculator who absorbs risks.
The core functions of the market: financing, avoiding risks and discovering value.
Types of market transactions: investment, hedging and speculation (arbitrage)
Market transactions? Positioning: investors, hedgers and speculators (arbitrageurs)
Investors: To increase investment and pursue long-term and stable interests.
Hedger: for the purpose of preserving value, avoiding risks and releasing risks.
Speculator: for the purpose of profit, find prices and absorb risks.
Taking risks in the financial capital market is the inherent responsibility of investors (speculators). Reducing and avoiding market risks as much as possible is the most important task of investors (speculators), and in fact it is the only task. In fact, the essence of investor game is to shirk risk responsibility as much as possible.
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