What are deravatives ? (stock market context ).?
Answers: In finance, a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.
Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Because derivatives are just contracts, just about anything can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.
In the context of the stock market, the most commonly used derivatives are options and futures.
For the definition of stock options see
http://www.investopedia.com/terms/s/stoc...
For the definition of futures see
http://www.investopedia.com/terms/f/futu...
Derivatives are generally used to hedge risk, but can also be used for speculative purposes.
Derivatives are options - Calls when traders want the stock to go up.
Puts when traders want the stock to go down.
Options are sold in Contracts: Each contract represents 100 shares of that stock.
Generally, as time goes by, options go down in value.
There is A LOT more info I could tell you about options, but I usually refer folks to this free site, which is recognized by Y! A as one of its "Knowledge Contributors:
http://investopedia.com
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
If you weren't able to buy any material possessions, invest, or give it away, what would you do with $100,000?
Answers: Exchange it all for pennies, melt it down into zinc and copper, sell the zinc and copper for unrestricted money with which I would buy material possessions.
or
Exchange it all for one dollar bills and
a) use it for toilet paper
b) fill a swimming pool & dive in
c) make a mattress or
d) amass it in one huge pile of money, stand in the middle and throw it in the air.
Do it all. 10% for you and fun. 10% to charity. For the rest, dollar cost average the rest into the market, and do it all over again in 20 years.
I want to invest my money contained by Australian business. but i don't know anything almost that.i want some details,
i want a real article for my moneyAnswers: BHP Billiton Ltd.
Australia
Web Site: http://www.bhpbilliton.com
BUSINESS SUMMARY
BHP Billiton Limited, together with its subsidiaries, engage in mining, drilling, and processing mineral resources. It operate through seven segments: Petroleum, Aluminium, Base Metals, Carbon Steel Materials, Diamonds and Specialty Products, Energy Coal, and Stainless Steel Materials. The Petroleum segment engage in the exploration for and production, processing, and marketing of hydrocarbons, including grease, gas, and liquefied natural gas. The Aluminium segment explores and mines bauxite, as powerfully as processes and markets aluminium and alumina. The Base Metals segment engage in the exploration for and mining, processing, and marketing of copper, silver, zinc, organize, uranium, and copper by-products, including gold. The Carbon Steel Materials segment engage in the exploration for and mining, processing, and marketing of coking coal, iron ore, and manganese. The Diamonds and Specialty Products segment includes exploration and mining of diamonds and titanium minerals, and fertilizer operation. The Energy Coal segment engages contained by the exploration for and mining, processing, and marketing of energy coal. The Stainless Steel Materials segment engage in the exploration for and mining, processing, and marketing of nickel. BHP Billiton operate primarily in Australia, South America, Africa, and Canada. The company be founded in 1885 and is headquartered contained by Melbourne, Australia. BHP Billiton Ltd. operates as a subsidiary of BHP Billiton Group.