Financial products refer to various carriers in the process of financing, including currency, gold, foreign exchange and securities. In other words, these financial products are the trading objects in the financial market. The supply and demand sides form the price of financial products, such as interest rate or yield, through the principle of market competition, and finally complete the transaction to achieve the purpose of financing. Such as stocks, futures, options and insurance policies are all financial assets, also called financial instruments and securities.
Finance and its products are neither falling from the sky nor inherent. Finance, financial market and financial products are like a tree species, which grows up with the development of human society in a suitable soil and time.
Financial products are the product of financial society; Financial society is gradually developed on the basis of agricultural society and industrial society; Financial products come from agricultural products and industrial products.
Finance and its market and products are not virtual, and should not be virtual. Financial products should evolve from physical assets. In fact, most financial products are evolved from physical assets. Taking stocks as an example, Great Wall changed its 1 10 million physical assets into a joint-stock enterprise with 1 10,000 shares through asset securitization. In this way, Great Wall Company will have financial assets or financial products. In the future, companies and financial institutions can further evolve stocks into stock options and futures.
The evolution of finance and its products is like leaves growing from branches, branches growing from trunks, and trunks growing from roots. They are interlocking, interrelated, inseparable and influencing each other. In fact, everything in finance is exactly the same as a tree, because a tree is a master of the laws of heaven and earth, a financial tree is a systematic integration of financial laws, and finance is a tree!
The development of finance is gradual, so financial products can be divided into two categories: basic securities such as stocks and bonds and derivative (advanced) securities such as futures and options. Secondly, according to the ownership attribute, financial products can be divided into two categories: property products such as stocks, options and warrants, and debt products such as national debt and bank credit products.