A study on the role of derivatives and investors perceptions on it

Type :

Indian project

Pages :

55 pages

Format :

.doc

Published date :

04/06/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Objectives
Research methodology
Limitations
Industrial profile
1. Indian stock market overview
2. Trading method
3. Trading on securities
4. Introduction to online trading
5. Stock trading online
Company profile
1. About IL&FS Investsmart Online ltd
2. Financial performance
3. Organization structure
4. IL&FS group business
5. IL&FS depository services
Products profile of IL&FS Investsmart
Questionnaire
Conclusion
Bibliography

Abstract

A derivative is a generic term for specific types of investments from which payoffs over time are derived from the performance of assets (such as commodities, shares or bonds), interest rates, exchange rates, or indices (such as a stock market index, etc). This performance can determine both the amount and the timing of the payoffs. The diverse range of potential underlying assets and payoff alternatives leads to a huge range of derivatives contracts available to be traded in the market. Today there many instruments available in the market which always optimize risk and tries give high returns and derivatives are which are gearing more attentions. The main types of derivatives are futures, forwards, options and swaps. There is tremendous growth in the use derivatives have found in the recent years; it is more than the equity segment because it is features, which help in hedging the risk. The growth in derivative has run in parallel with the increasing direct reliance of the companies on the capital for the long -term sources funds. Emerging in the 1970s, derivatives markets grew from strength to strength. The trading volumes nearly doubled in every three years. They become so ubiquitous that, now, one cannot think of the existence of financial markets without derivatives.