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Stock Market vs Futures Market

8/19/2016

1 Comment

 
Picture

Stock Market

  • The stock of a company can be held as long as the investor wants, therefore stock has unlimited life.
  • A company may have variety of stocks, for example for new project the company may issue different shares to fund the project.
  • The share of a company is paid upfront in full. If the share price of ABC company is $50 then it must be paid $50 at purchase per share. 

Futures Market

  • The future contracts expire at maturity, therefore futures contract has limited life. 
  • There are only one standard futures contract in a specific futures market for specific future contract, the future contract is standardized.
  • The margin of the futures are paid to create financial leverage. The futures contract is also paid at the expire date. 
1 Comment
Kyla Curtis link
10/31/2023 02:12:57 am

Great readiing

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