Strictly speaking, futures is not a commodity, but a legal contract, in which both parties agree to buy and sell a specific commodity at an agreed price and quantity in the future. This commodity may be a grain and oil product or a financial product. In short, futures are pre-arranged contracts that stipulate the obligations that buyers and sellers must perform. The futures market ensures that buyers and sellers fulfill their due obligations.
Futures contracts are traded on the futures exchange and settled daily, and both buyers and sellers can perform smoothly. Futures prices fluctuate every day, and investors try to gain profits from these price changes, while hedgers avoid the operational risks brought about by price changes.
Stock is a stock issued by a joint stock limited company to investors when raising capital. Stock represents the ownership of its holder (that is, shareholder) to a joint-stock company. This kind of ownership is a comprehensive right, such as attending the shareholders' meeting, voting, and participating in major decisions of the company. Receive dividends or share dividends, etc. 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. Generally, stocks can be traded and transferred with compensation, and shareholders can recover their investment through stock transfer, but they cannot ask the company to return their investment. The relationship between shareholders and the company is not a creditor-debtor relationship. Shareholders are the owners of the company, and are limited by their capital contribution, taking risks and sharing profits.
Stock is the product of socialized mass production and has a history of nearly 400 years. As the fruits of human civilization, joint-stock system and stock are equally applicable to China's socialist market economy. Enterprises can raise funds for production and operation by issuing shares to the public. By controlling majority ownership, the state can control more resources with the same funds. Currently in Shanghai. Most companies listed on Shenzhen Stock Exchange are state-owned holding companies.
Simply put, just like gambling, you buy big and buy small. You buy stocks. If they go up, you can make money. Of course, China now also has margin financing and securities lending. You can also buy it to make money, and futures are bought for some time to come. For example, if you buy wheat in July now, you will earn more than this price, and vice versa.