Know About Equity, Bonds, Securities Lending and Borrowing (SLB), and Derivatives. 

 

Equity:

Equity refers to ownership in a company or organization, represented by shares of stock. When a person owns stock in a company, they have a claim on the company's assets and earnings proportional to the number of shares they own. This means that if the company does well, the value of the person's shares may increase, allowing them to sell the shares at a higher price and make a profit. However, if the company performs poorly, the value of the person's shares may decrease, resulting in a loss.

 

Bonds:

A bond is a type of debt security that represents a loan made by an investor to a borrower, typically a corporation or government. When an investor buys a bond, they are essentially lending money to the borrower, who promises to pay back the loan with interest over a set period of time. The interest rate paid on a bond is typically fixed, meaning that the investor will receive the same amount of interest payments throughout the life of the bond. Bonds are considered less risky than stocks because they offer a fixed rate of return and are less affected by market fluctuations.

 

SLB (Securities Lending and Borrowing):

SLB is a transaction where one party (lender) loans securities to another party (borrower) for a fixed period of time, in exchange for a fee. The borrower is required to return the securities at the end of the agreed-upon time period. Securities lending is typically used by institutions such as hedge funds and pension funds to generate additional income from their securities holdings.

 

Market Chart

Derivatives:

A derivative is a financial instrument whose value is derived from the value of an underlying asset, such as stocks, bonds, or commodities. Examples of derivatives include futures contracts, options contracts, and swaps. Derivatives are used for a variety of purposes, including hedging against risk, speculating on price movements, and arbitraging price discrepancies between markets. However, derivatives can also be highly complex and risky, and may not be suitable for all investors.