Investor: why use the financial markets ?

Financial markets are physical or virtual places that promote the meeting of the’long-term capital supply and demand. They offer great opportunities for investors. These can include investing their savings and financing projects of’business while benefiting from’a number of privileges.

Discover the different interesting possibilities that’offer financial markets to investors or backers.

Financial markets: make money’money while taking a relatively low risk

Investing in Bitcoins capital markets allows you to’You can get big gains while limiting the risk of losing money’money. In practice, there are two main ways to make an investment in a financial market. In practical terms, investors can either buy bonds or acquire shares from companies.

In the’one or the other’other case, the’investment is profitable and subject to little risk. As far as l’purchase of’bonds in particular, it guarantees a stable income stream. This mechanism is an excellent solution to’This is a great way to save money for people who want to grow their assets without taking too much risk.

From its côs, the’purchase of shares’There are more risks involved with stocks, especially in the event of a stock market crash. However, this type of casino is not a good option’investment guarantees a more consistent profitability casinos, as well as interesting privileges at the casino’The investor (obtaining the quality of the investment) can also benefit from the advantages of the slot machine’shareholder, dividend rights, voting rights).

To secure their investments in the financial markets, funders can focus only on financially healthy companies. They can also require that the managers of these companies present them regularly with a certain number of financial documents. These dividends give investors the certainty that the company will not lose its value’they will be effectively reimbursed or that they will not be repaid’they will receive dividends, s’they are shareholders.

Investor: you can use the financial markets to reach your goals

There are different types of capital markets, namely :

  • the equity market,
  • the bond market,
  • the foreign exchange or currency market,
  • the commodities market,
  • the derivatives market…

Each market allows financial market professionals to The ability to trade a specific instrument and thus be in a position to buy and sell’to achieve specific goals.

In concrete terms, on the stock market, you can find public or private companies that want to sell or buy a currency raising capital to finance their development. C’is the’an ideal place to acquire shares in publicly traded companies and earn dividends based on the amount you invest.

In addition, you also have the possibility to go to the bond market to lend cash to companies that issue bonds. This will allow you to become the creditor of large multinationals or even the’State. To the’the maturity of the bonds purchased, the’The investor will get his or her capital back and will also receive interest.

For investors who wish to do so, they can sell or buy a currency in exchange for a commodity’another currency on the foreign exchange or FOREX market. As for the derivatives market, it allows trading in derivative financial instruments such as swaps, options, futures and warrants. By using this tool, financial players seek to hedge the risk of changes in asset costs, rates or exchange rates.

Finally, the commodities market allows investors to invest in a variety of commodities’trading in derivatives linked to natural resources (oil, gas, precious metals, foodstuffs, etc.)…). All transactions are made in the’s are traded over-the-counter (OTC)’i.e. directly between sellers and investors.

Markets can be used to spread the risk between different types of assets’investments

All investments involve risk. Nevertheless, it is possible to reduce these risks by placing your savings in several capital market products. In practical terms, you can buy both stocks, bonds, currencies or commodities.

It is even possible to spread your financial risk in a single category of’You can invest in several companies, countries or sectors of activity’activities.

This diversification of the investment portfolio’investment This is a very effective method to reduce the risk of total or partial loss of the invested funds. Indeed, if a company or a sector has a very high price, it is possible to buy or sell it’If the market collapses because of the crisis, it will not be possible to sell it’will not affect the’of your investments.

A tool to buy and sell assets quickly and easily

The financial markets include large companies, firms, states and investors with unlimited resources. Demand and supply’offer of financial products s prices are therefore very high. Thus, as a’Whether you are a public or private investor, you can easily and relatively quickly sell the assets you hold in the capital markets.

Similarly, over-the-counter (OTC), l’purchase of’shares, securities or units is very easy since many companies offer these types of products to investors.