Securities and Markets

#assets

Assets can be divided into two categories according to physical and virtual:

Physical assets: goods and services created by people, such as land, factories, equipment and knowledge of laborers, etc., which directly serve people.
Financial assets: When the society develops to a certain level, people create bills (contracts, certificates, etc.) to identify certain interests in physical assets. These bills are financial assets.

According to resource allocation can be divided into

Deposits and cash assets: This is easier to understand.
Fixed-income assets: fixed-interest assets such as bonds.
Equity assets: that is, certain rights to own assets, such as stocks, and holding means owning the company’s equity rights.
Alternative assets: such as real estate, commodities, etc.

#securities

Financial assets can be divided into tradable and non-tradable, such as

Deposit a sum of money in the bank to earn interest, and this money cannot be withdrawn within a certain period of time, so the depositor and the bank have reached a contract, and the bank will give the depositor this contract note, or contract, certificate, This bill is not tradable. Since it cannot be traded, there is no price and cannot be circulated, so it is also called priceless securities, or certificate securities.
Marketable securities are indicators that have a face value and are used to prove that the holder or subject has ownership or creditor’s rights to a specific property. It has its own price and can be traded. Indirectly, it is equivalent to the ownership of the financial assets behind the transaction. In addition, non-tradable financial assets, even industrial assets, can also be converted into tradable securities through the financial means of “asset securitization”.

Securities, a common misunderstanding is that securities are equal to stocks. In fact, there are many types of securities, including stocks, bonds, futures contracts, etc. Generally speaking, when referring to securities, most of them refer to marketable securities.

#Market

Market, perhaps because of the characteristics of securities trading, inquiry, and quotation, is very similar to real vegetable markets and bazaars, so the word “market” is widely used in the fields of finance, economy, and trading. But the specific meaning should be judged according to the context. Because different assets can have different markets, for example, real estate has a real estate market, that is, the housing market, bonds have a bond market, that is, the bond market, stocks have a stock market, that is, the stock market, and futures have a futures market and a spot market.

When people who speculate in stocks talk about the “market”, they sometimes refer to the stock market alone, sometimes they refer to the stock market and bond market, or the “securities market” including all securities such as stocks, bonds, and futures contracts.

The term “financial market” is also used frequently and can be considered to include markets for all financial assets.

#Bull Market, Bear Market, Monkey Market

It generally refers to two trends in the stock market.

bull market:

The prices of most securities are rising, some even skyrocketing, and the overall valuation of the market is also rising, making it difficult to lose money.
Investors are generally very optimistic, and discussions on optimistic topics are positive.
At the end of the bull market, it is difficult to find undervalued securities in the market, a large number of investors are excited, and there are a large number of new investors.

Bear market:

The prices of most securities are falling, some even plummeting, and the overall market valuation is also constantly falling. It is difficult not to lose money.
Investors are generally very pessimistic, and pessimistic topics are discussed positively.
At the end of the bear market, most of the securities in the market are undervalued, and a large number of investors are disappointed and don’t even care about the market.

The origin of these two words is unknown, but they are widely regarded as very figurative.

Bull market, the bull market is named after the bull, which shows that the rise of securities prices is just like the stability of the bull, which makes people feel at ease.
Bear market, the bear market is named after the bear. At this time, the decline is like the ferocity of the bear, which makes people fearful.

Monkey market is a term invented in modern times. It means that the stock market sometimes rises and sometimes falls in the short to medium term, just like a monkey jumping up and down.

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