Stock Broking, F&O & I.P.O’s

Stock Broking

It used to be that only the wealthy could afford a broker and have access to the stock market. With the internet came the explosion of discount brokers that let you trade at a smaller fee, but don't provide personalized advice. Because of discount brokers, nearly anybody can afford to invest in the market now.

Futures & options

The main fundamental difference between options and futures lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract. A futures contract gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver that asset at a specific future date, unless the holder's position is closed prior to expiration.

Initial Public Offering (IPO)

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.