Know Some Common Stock Types In The International Capital Market

Currently, for some people who have a high enough stock, the capital market becomes a very important and promising investment. For that, many sham holders who use IC Markets to get a lot of benefits. By investing the right shares, the best investment for their business will be earned.

In an international capital market, there are many instruments traded. Usually, the instrument is very high value and becomes an instrument that is very important in a company’s finances. There are several capital instruments you can choose in an international capital market, such as

1. Shares
Shares can be differentiated into common stock and preferred stock. In general, the common stock will be traded investors in the international capital market. Meanwhile, preferred stock usually has a special right in an international capital market.

2. Bonds
Bond is a bond. This bond can be likened to a company indebted to the public. The society that buys the bond will get the return and the coupon. Bond is one of the types of investment which is quite often issued by company or government of a Country.

3. Mutual Funds
This is an investment container gathered from the community. This investment container will be managed by the investment manager so as to produce the desired return by the holders of mutual funds.

4. Derivatives
This derivative has two types, namely futures contract and options contract.
– Future Contract
This is an agreement made today that requires future transactions. This contract may be a commodity futures contract and a financial futures contract. Commodity futures contracts use the principal variables of real assets in the form of agricultural goods such as sugar, coffee, potatoes and various natural resources such as gold, or oil. Meanwhile, financial futures contracts use variable effects, such as stocks or stock indices.
– Option Contract
This is an agreement that gives the owner the right and not the obligation. This right is used to buy or sell a particular asset at a particular price for a specified period of time.