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.
Financial products refer to all kinds of intangible assets that have economic value and can be publicly traded or realized. They are also called marketable securities, such as cash, bills of exchange, stocks, futures, bonds and insurance policies. For example, we can buy any commodity with cash, including financial products; We can go to the bank to accept the draft (turn it into cash): we can buy and sell stocks, futures, etc. At will in the corresponding financial market; Our bonds, insurance policies, etc. Can be cashed (turned into cash) at maturity.
The so-called "one thing with four names" means that the same financial product has four different names according to different users, different uses and different functions, namely, financial products, financial assets, financial instruments and securities.
Take stocks as an example. For the market, stocks are financial products. For issuers, stocks are financing tools; For traders, stocks are tools for investment or speculation; For corporate finance, stocks are financial assets or 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.
Finance at least looks intangible, changeable, complex and colorful, so the division of financial products is also diverse. Due to the limited time, a brief description is as follows.
First of all, financial development 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.
The former is the relationship between property rights and the latter is the relationship between creditor's rights. Furthermore, according to the expected income, wealth management products can be divided into stocks, options, funds and other non-fixed income products. And various fixed (also called structured) products such as bonds and credit products. Finally, financial products can be divided into short-term products, long-term products, low-risk products, high-risk products, currency (market) products and capital (market) products according to the length of time, the degree of risk and the hunger and thirst of trading places.