[Audio] Welcome everyone. Today, we will be exploring the various securities available in the stock market. We hope this presentation will give you a better understanding of the different classes of securities and the ways you can use them to find success in the stock market. Thank you for being here and I hope you enjoy the presentation..
[Audio] Exploring the world of stock market securities that can be traded beyond stocks and bonds, this presentation will provide an in-depth look into their potential and risks. We will uncover the hidden gems that may be found in these investments, analysing all aspects of how they can be used as effective investments..
[Audio] Stocks are a popular form of security when investing in the stock market. Two varieties of stocks exist: common stocks and preferred stocks. Common stocks may offer shareholders the chance to collect dividends, whereas preferred stocks are typically fixed when it comes to dividends. Every type of stock carries its own pros and cons, so it is essential to be informed on these when looking to have a diversified portfolio..
[Audio] Bonds are an investment security in the stock market, representing loans made to companies or governments. They usually have a fixed interest rate and an expiration date; they are often thought to be safer than stocks but provide lower returns..
[Audio] Options provide an effective financial mechanism for controlling risk and generating profits. However, their complexity and potential for large losses mean that they should be employed with care. Options confer the holder the right, but not the obligation, to purchase or sell a given underlying asset at a fixed price. Consequently, to capitalize on the advantages of options while avoiding their risks, investors must have a thorough understanding of the associated profits and dangers of the prevailing market environment..
[Audio] Futures are an agreement between two parties to exchange an underlying asset at a given date and price in the future. Primarily they are used to reduce the risk of price fluctuations or to bet on future market trends. Futures can be used in a variety of asset classes, such as commodities, but are most commonly found in the commodities market. They offer an advantage over simply owning the asset by allowing investors to take advantage of price movements without owning the asset itself, as well as providing the ability to leverage margins to maximize returns or minimize losses..