Tell me about your self introduction, what is Derivative, what is Capital Market and types of Capital Market, what is KYC.

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Accepted Answer

KYC Analyst introduction covering derivatives, capital markets, and KYC essentials.

A derivative is a financial contract whose value is derived from an underlying asset, such as stocks or commodities.
Examples of derivatives include options, futures, and swaps.
Capital markets are venues where savings and investments are channeled between suppliers and those in need, facilitating capital raising.
Types of capital markets include primary markets (where new securities are issued) and secondary markets (where existing securities are traded).
KYC, or Know Your Customer, is a process used by financial institutions to verify the identity of their clients to prevent fraud and money laundering.

Accepted Answer

Derivatives:- it is a financial contract whose value are derives from the underlying assets. It can be traded both OTC and exchange. It is used for speculation and hedging.

Capital market:- it is a financial market where long term securities are bought and sold. It is a key part of financial system that allows companies to raise capital for growth and development typically through the stock market and bond market. There are are two types of capital market which is primary market and secondary market.
Primary market is a market where new securities are issued and sold for the first time by companies to raise capital.
Secondary market is a market where securities are offered to the general public after being offered in the primary market. In this the securities are listed on the stock exchange.

KYC:- it is a process used by financial institutions to verify the identity of their clients to prevent Fraud, money laundering and other financial crime.

Tell me about your self introduction, what is Derivative, what is Capital Market and types of Capital Market, what is KYC.

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