ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Stock is a capital market instrument issued by companies to raise capital. It is also known as equity share. Investment in company stocks gives you ownership and voting rights in the company. The partial ownership in the company extends until you sell the shares in the secondary market or the company liquidates.

Detailed explanation-2: -Derivatives: Derivative instruments are capital market financial instruments whose values are determined from the underlying assets, such as currency, bonds, stocks, and stock indexes.

Detailed explanation-3: -An Equity Instrument can be titled common stock, preferred stock, LLC membership interest or LLC Membership Unit (or Unit for short), warrant or option, each having a particular meaning and not being interchangeable.

Detailed explanation-4: -The financial instruments that are specifically traded on the stock market are shares/stocks, derivatives, bonds and mutual funds.