What r the basic differences btwn shares,stocks, securities, units and derivatives?
Vijay Sarathi H (PARTNER) (562 Points)
14 May 2009What r the basic differences btwn shares,stocks, securities, units and derivatives?
Rahul Chobdar
(Chartered Accountant (Financial Management))
(561 Points)
Replied 14 May 2009
hi vijay
Shares: smallest unit of Share Capital
Stock : when you own many shares of same company, it is referred as Stock.
Securities: Shares, bonds, other instruments issued by any organisation to raise money are some examples of securities.
Units: In case of Mutual Funds, Unit is the smallest part of the total assets managed by the Mutual Fund similar to shares.
Derivatives: These are weapons of mass financial destruction - Warren Buffet.
It includes Future Options & other instruments of trading.
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