Why Derivatives Contract are needed? What is put option, Call Option IPO FPO Future Forward Option Swap Investment Banking. Sebi Stock market BSE NSE Read all

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Derivatives contracts are needed to manage risk and provide opportunities for speculation and hedging in financial markets.

Derivatives contracts allow investors to manage risk by providing a way to hedge against potential losses.
They also provide opportunities for speculation, allowing investors to profit from price movements without owning the underlying asset.
Put options give the holder the right, but not the obligation, to sell an asset at a specified price within a specific time period.
Call options give the holder the right, but not the obligation, to buy an asset at a specified price within a specific time period.
IPO stands for Initial Public Offering, which is the first sale of a company's shares to the public.
FPO stands for Follow-on Public Offering, which is the sale of additional shares by a company that is already publicly traded.
Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date.
Forward contracts are similar to futures contracts but are customized agreements between two parties.
Swaps are agreements between two parties to exchange cash flows or assets based on predetermined terms.
Investment banking involves providing financial services to corporations, governments, and other institutions.
SEBI (Securities and Exchange Board of India) is the regulatory body for the securities market in India.
BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are the two major stock exchanges in India.

Why Derivatives Contract are needed? What is put option, Call Option IPO FPO Future Forward Option Swap Investment Banking. Sebi Stock market BSE NSE Read all

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