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Can you explain stocks, funds, securities, bonds, trusts, futures, national debt and foreign exchange in the most popular language?
Can you explain stocks, funds, securities, bonds, trusts, futures, national debt and foreign exchange in the most popular language?

These are financial terms, which we need to touch more or less in our daily financial investment. It is very necessary to understand these investment projects.

Generally speaking:

Stocks: If you are optimistic about the prospects of a company, then buying the stocks of this company is equivalent to investing in stocks, and you can sell them if you are not optimistic in the future.

Fund: I don't have the ability to invest myself, and then I pay a service fee and give the money to a capable team.

Securities: Many economic warrants are collectively referred to as "building a house", just like what we have heard about doing projects. But in fact, it's not just houses. Bridges, subways and waterproofing are all theirs. Taking securities as an example, most people understand stocks, but there are also claims and options.

Bond: If someone needs money, ask you to borrow it, and agree when to repay the principal and pay interest.

Trust: For example, if you gave birth to an unfilial son, you squandered your wealth. When you are old, you are afraid that your property will be replenished by him after your death. So you entrust a person, and then give the property to him for management, and you can give the property to your children under certain conditions. It is a system entrusted by newcomers.

Futures: To put it bluntly, you don't have physical objects in your hand, but what you are worried about is the rise and fall of commodities. You can buy a futures contract directly in the futures market. If the price rises in the future, you can sell the contract to others and earn the difference. If you think the price will fall, you can also borrow a contract to sell it in the futures market. When the price really drops, you can buy it back and return it to others.

National debt: the state borrows money from the society with its own reputation as guarantee, and agrees to repay the principal and interest within a time limit.

Foreign exchange: a country wants to do business with another country, but each country's currency is different, and then it needs an exchange mechanism to exchange its own country's money for that country's money to do business.

This is my answer, thank you for reading ~