The History of the Stockmarket / Part 2
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Stock market index
The movements of the prices in a market or section of a market are captured in price indices called stock market indices, of which there are many,
e.g., the S&P, the FTSE and the Euronext indices. Such indices are usually market capitalisation (the total market value of floating capital of the
company) weighted, with the weights reflecting the contibution of the stock to the index.
More about Stock-Market Indices : Click here
Derivative instruments
Financial innovation has brought many new financial instruments of which the pay-offs depend on the prices of stocks. Examples are stock options,
equity swaps, single-stock futures, etc. These are traded on futures exchanges such as Euronext.liffe (which are distinct from stock exchanges), or
traded over-the-counter. As these products are only derived from stocks, and are not securities, they are usually considered to be traded on the
derivatives markets, rather than the stock market.
Leverage Strategies
Stock that a trader does not actually own may be traded using short selling and Margin buying.
Trader : Herman Bogaerts --- Tradersname : Freedom --- Portable : 0033.(0).683.13.99.99
E-Mail : Herman.Bogaerts@Wanadoo.fr --- Herman_Bogaerts@Yahoo.com
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