What are the key financial instruments and products that are traded in financial markets?

Claire

The key financial instruments and products that are traded in financial markets include:

1. Stocks: ownership in a company

2. Bonds: debt instruments that pay interest over time

3. Futures contracts: agreements to buy or sell an asset at a specific price in the future

4. Options contracts: agreements that allow the holder to buy or sell an asset at a specific price within a certain timeframe

5. Foreign exchange (FX): the exchange of one currency for another

6. Commodities: raw materials such as gold, oil, and agricultural products that are traded on exchanges

7. Derivatives: financial instruments that derive their value from an underlying asset, such as a stock or commodity.

8. Mutual funds: an investment vehicle that pools money from multiple investors to purchase a portfolio of securities

9. Exchange Traded Funds (ETFs): investment funds that trade on an exchange and track an underlying asset or index.

10. Real estate investment trusts (REITs): companies that own or finance income-producing real estate and are traded on exchanges.

 

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