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CHAPTER 1:
INVESTMENT AND SECURITIES MARKET, DERIVATIVES MARKET, PRIMARY…
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DERIVATIVES MARKET
OPTIONS
Call option
- The right to buy an asset at specified price on or before a specified expiration date
Put Option
- The right to sell an asset at specified price on or before a specified expiration date
FUTURES
- Oblige traders to purchase or sell an asset at an agreed-upon price at a specified future date
- Allow for buying and selling of derivative securities e.g. equity derivatives
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CAPITAL MARKET
- A market that facilitates the flow of long-term securities
- Long-term securities: Fixed income securities, equity securities
Fixed Income Securities
- Treasury notes or bonds
- Corporate bonds
Equity Securities
- Common stock
- Preferred stock
OFFSHORE MARKET
A market where money market instruments, fixed income and equity securities and derivatives products are traded with non-residents or offshore clients.
- Current commitment of money for real and financial assets
- Expecting of reaping future benefits
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- stock price appreciation
- dividend payment
- interest income
- certain tax benefits
- rental income
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