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Derivative instruments::Stock market

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Financial innovation has brought many new financial instruments whose pay-offs or values depend on the prices of stocks. Some examples are exchange-traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, and stock index futures. These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodity futures exchanges), or traded over-the-counter. As all of these products are only derived from stocks, they are sometimes considered to be traded in a (hypothetical) derivatives market, rather than the (hypothetical) stock market.


Stock market sections
Intro  Size of the market  Stock exchange  Trade  Market participant  History  Importance of stock market  Stock market index  Derivative instruments  Leveraged strategies  New issuance  ASX Share Market Game  Investment strategies  Taxation  See also  References  Further reading  External links  

Derivative instruments
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