1. Basic assets: This is the physical assets in the financial market, such as stocks, bonds, commodities or currencies. The value of basic financial assets directly comes from its own value.
2. Financial derivatives: This is a contract derived from the basic financial assets, and its value depends on the changes of the basic financial assets. Option is a kind of financial derivative, which gives the holder the right to buy (call option) or sell (put option) the underlying financial assets at an agreed price in the future.
Therefore, the option itself is not a basic financial asset, but a financial instrument, and its value comes from the price change of the basic financial asset.
1. What is a financial asset?
Financial assets refer to assets owned by units or individuals in the form of value, which is the symmetry of physical assets. It is the general name of all financial instruments that can be traded in the organized financial market and have realistic prices and future valuations. Also called financial instruments or financial products. Financial assets include basic financial assets and derivative financial assets. Its value is determined by the future income it may bring to the owner.
2. The main participants (subjects) in the financial market?
Government departments, industrial and commercial enterprises, individual residents, central banks, deposit financial institutions (commercial banks, savings institutions and credit cooperatives) and non-deposit financial institutions (insurance companies, pension funds, investment banks and investment funds).
3. What is the function of financial market?
Accumulation function: the financial market gathers a large number of scattered small idle funds and puts them into social reproduction again.
Configuration function: resource configuration; Redistribution of wealth; Risk redistribution.
The function of financial market in adjusting macro-economy.
Information function: the change of national money supply can be directly and indirectly reflected in the financial market; Market traders can obtain market trading information at any time and then make a decision.
Supervision function: the price of financial assets reflects the performance of enterprise management; Enterprises can make use of various financial instruments to carry out risk transfer and risk management, thus promoting their self-supervision and restraint.
4.？ What are the seven tools of money market?
The interbank lending market and repurchase agreements are the same as those in reverse repurchase agreements, commercial paper, bank acceptance bills, large negotiable certificates of deposit, government bonds and money markets.
5.？ The concepts of stocks, bonds and funds?
Stock is an equity contract in which investors provide capital to the company, and it is the ownership certificate of the company. Shareholders' rights and interests are manifested in the distribution of profits and assets, that is, residual claims. If the company goes bankrupt, the personal property of shareholders will not be investigated.
Bonds are creditor's rights and debts contracts in which investors provide funds to governments, companies or financial institutions.
Investment funds, by issuing fund bonds? (Fund share or income voucher), an investment system in which investors' scattered funds are concentrated, dispersed by professional managers on stocks, bonds or other financial assets, and the investment income is distributed to fund holders.