Income Tax : A derivative is nothing but a bet. We in our daily lives enter into a derivative contract (place a bet) without even knowing about...
Finance : One of the reasons why India is a little behind USA is because the citizens of USA are taught the culture of savings and investmen...
Finance : An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on the st...
Finance : Interest is nothing more than the cost someone pays for the use of someone else's money. Homeowners, credit cards users etc know a...
A derivative is nothing but a bet. We in our daily lives enter into a derivative contract (place a bet) without even knowing about it, say while watching a cricket match. To make you familiar with one of the derivative contract let me give you an example. Let’s say you have to buy a cable connection for your televison.
One of the reasons why India is a little behind USA is because the citizens of USA are taught the culture of savings and investments from their childhood. Investing is also a part of their school curriculum which manifests in them habit of investing.
An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on the stock exchange. So what exactly are ETFs? ETFs are somewhat like a Cadbury’s Celebration pack which contains a variety of Cadbury chocolates. Imagine a dairy milk chocolate, just like companies come in different sizes and prices, a dairy milk is available in all kinds of tastes, sizes and prices.
Interest is nothing more than the cost someone pays for the use of someone else’s money. Homeowners, credit cards users etc know about this scenario very well. They borrow money from bank and in return they pay interest to bank for using the privilege.
