Stocks: The primary instruments traded on the share market are stocks or shares of publicly traded companies. Investors buy and sell shares, representing ownership in the company.
Exchange-Traded Funds (ETFs): ETFs are investment funds that trade on stock exchanges. They track a specific index, sector, commodity, or asset class and allow investors to gain exposure to a diversified portfolio of assets.
Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional fund managers.
Bonds: Bonds are debt instruments issued by corporations, municipalities, or governments to raise capital. Investors purchase bonds and receive regular interest payments until the bond matures, at which point they receive the principal back.
Options: Options are derivatives that give investors the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset, such as stocks, at a predetermined price within a specific timeframe.
Futures Contracts: Futures contracts are agreements to buy or sell an asset at a predetermined price on a specified date in the future. They are commonly used for commodities like oil, gold, or agricultural products.
Currencies: Some share markets offer currency trading, where investors can trade one currency against another, aiming to profit from fluctuations in exchange rates.
Indices: While not directly traded, stock market indices like the S&P 500, Dow Jones, or Nasdaq Composite are used as benchmarks for evaluating the performance of the overall market or specific sectors.
Commodities: Some share markets facilitate the trading of physical commodities like gold, silver, oil, natural gas, agricultural products, and other raw materials.
Derivatives: Various types of derivatives, such as futures, options, and swaps, are traded on share markets. These financial instruments derive their value from an underlying asset and are used for hedging or speculative purposes.