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job preparation (Subject) / finance (Lesson)
- What is a financial market? A market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural products
- What is the Money market? segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. borrowing and lending in the short term
- What is a Swap? A swap is a derivative contract through which two parties exchange financial instruments. most swaps involve cash flows One cash flow is generally fixed, while the other is variable, that is, based on a benchmark interest rate, floating currency exchange rate or index price. The most common kind of swap is an interest rate swap. Swaps do not trade on exchanges, and retail investors do not generally engage in swaps. Rather, swaps are over-the-counter contracts between businesses or financial institutions.
- Forward Contract customized contract between two parties to buy or sell an asset at a specified price on a future date.
- Futures financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), at a predetermined future date and price.The futures markets are characterized by the ability to use very high leverage relative to stock markets. => Lock the price
- What is a derivate Contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and often called the "underlying" Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets. forwards, futures, options, swaps, and variations of these such as synthetic collateralized dbt obligations and credit default swaps.
- bond Anleihe!! give money against interest rate
- share give money for a part
- security tradeable asset
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