Professional Documents
Culture Documents
Kinds of Companies
• Company Limited by Shares
• Private Limited Company
• Public Limited Company
Classifying Securities
Interest-Bearing Assets
Primary asset
Security originally sold by a business or
government to raise money.
Derivative asset
A financial asset that is derived from an
existing traded asset rather than issued by a
business or government to raise capital.
More generally, any financial asset that is
not a primary asset.
Derivatives
Futures contract
An agreement made today regarding the
terms of a trade that will take place later.
Option contract
An agreement that gives the owner the right,
but not the obligation, to buy or sell a
specific asset at a specified price for a set
period of time.