To develop commodities on the stock market, we need to know what commodities are? Here, the goods are shares issued by joint stock companies, so only joint stock companies have shares, but shares are not only two types: common shares and preferred shares, but also Translating derivatives such as forwards, futures, options and stock indices. - Forward contract: is an agreement to buy or sell between two parties at a predetermined time in the future (use hedging). ( For example: The situation of coffee prices in the Vietnamese market is often unstable and fluctuates depending on the situation of coffee prices in the world market and the weather. In any year, the weather is good and the price of coffee in the world market decreases, the domestic coffee price will decrease, causing damage to coffee farmers. On the contrary, in a year when the weather is not good and the price of coffee in the world market increases, the domestic price of coffee will increase, making it difficult for coffee exporters to buy coffee from farmers. To avoid instability, a coffee exporter, such as DakLak Import-Export Joint Stock Company, can negotiate and sign a futures purchase contract with Thinh Coi (a farmer). For example, at the beginning of the season, DakLak Import-Export Joint Stock Company signed a 6month contract to buy 20 tons of coffee from Thinh at the price of 28 million VND/ton. At that time, Thinh was called the seller and DakLak Import-Export CP was the buyer in the forward contract. After 6 months, Thinh Horn is responsible for selling 20 tons of coffee to DakLak Import-Export Joint Stock Company at a pre-agreed price of VND28 million/ton and DakLak Import-Export Joint Stock Company is obliged to buy 20 tons of Thinh Khoi's coffee at that price, even though What is the market price of coffee after three months? With a known and fixed agreed-upon price, both Thinh Horn and DakLak Import-Export Joint Stock Company have peace of mind from having to worry about coffee price fluctuations in the market.) Futures Contract: A standardized contract between two parties for the exchange of a specific asset of standardized quality and volume at an agreed-upon price today with delivery at a future date. [Usually two parties will deposit an initial amount called margin (margin) to minimize the risk of breaking the contract between the two parties] (For example: Company A sells to Company B 100,000 barrels of oil for delivery in May 2007 under a futures contract for $65/barrel. By May 2007, when the oil price rises to $85/barrel, either A will have to deliver to B 100,000 barrels of oil for $65 or A will not have to deliver oil but pay B 20x100,000= $2 million.) - Option contract: As the name implies, an option is a call or put option, this contract is a derivative that gives the holder the right to buy or sell an asset at a specified price at a predetermined time. (For example: Right (American style) option to buy 100 shares of IBM with a strike price of 50 USD, expiration date 1/5/200X. The buyer of this option will have the right to buy 100 shares of IBM for $50 at any time through May 1, 200X.) As for attracting diverse investors to create demand for the development of the stock market, in the previous sections, we have considered development to create supply, so now we will talk about attracting investors. investment to create demand. Often the investment needs of investors will determine the demand factor of the market. To create a bridge, you need to pay attention to: - Attract a variety of investors - Stimulate demand for buying and selling stocks In general, there are two types of investors: individual investors and institutional investors - Individual investors: individuals, households, representatives of organizations - Institutional investors: insurance companies, financial companies, superannuation funds, investment funds To develop commodities on the stock market, we need to know what commodities are? Here, the goods are shares issued by joint stock companies, so only joint stock companies have shares, but shares are not only two types: common shares and preferred shares, but also Translating derivatives such as forwards, futures, options and stock indices. - Forward contract: is an agreement to buy or sell between two parties at a predetermined time in the future (use hedging). ( For example: The situation of coffee prices in the Vietnamese market is often unstable and fluctuates depending on the situation of coffee prices in the world market and the weather. In any year, the weather is good and the price of coffee in the world market decreases, the domestic coffee price will decrease, causing damage to coffee farmers. On the contrary, in a year when the weather is not good and the price of coffee in the world market increases, the domestic price of coffee will increase, making it difficult for coffee exporters to buy coffee from farmers. To avoid instability, a coffee exporter, such as DakLak Import-Export Joint Stock Company, can negotiate and sign a futures purchase contract with Thinh Coi (a farmer). For example, at the beginning of the season, DakLak Import-Export Joint Stock Company signed a 6month contract to buy 20 tons of coffee from Thinh at the price of 28 million VND/ton. At that time, Thinh was called the seller and DakLak Import-Export CP was the buyer in the forward contract. After 6 months, Thinh Horn is responsible for selling 20 tons of coffee to DakLak Import-Export Joint Stock Company at a pre-agreed price of VND28 million/ton and DakLak Import-Export Joint Stock Company is obliged to buy 20 tons of Thinh Khoi's coffee at that price, even though What is the market price of coffee after three months? With a known and fixed agreed-upon price, both Thinh Horn and DakLak Import-Export Joint Stock Company have peace of mind from having to worry about coffee price fluctuations in the market.) Futures Contract: A standardized contract between two parties for the exchange of a specific asset of standardized quality and volume at an agreed-upon price today with delivery at a future date. [Usually two parties will deposit an initial amount called margin (margin) to minimize the risk of breaking the contract between the two parties] (For example: Company A sells to Company B 100,000 barrels of oil for delivery in May 2007 under a futures contract for $65/barrel. By May 2007, when the oil price rises to $85/barrel, either A will have to deliver to B 100,000 barrels of oil for $65 or A will not have to deliver oil but pay B 20x100,000= $2 million.) - Option contract: As the name implies, an option is a call or put option, this contract is a derivative that gives the holder the right to buy or sell an asset at a specified price at a predetermined time. (For example: Right (American style) option to buy 100 shares of IBM with a strike price of 50 USD, expiration date 1/5/200X. The buyer of this option will have the right to buy 100 shares of IBM for $50 at any time through May 1, 200X.) As for attracting diverse investors to create demand for the development of the stock market, in the previous sections, we have considered development to create supply, so now we will talk about attracting investors. investment to create demand. Often the investment needs of investors will determine the demand factor of the market. To create a bridge, you need to pay attention to: - Attract a variety of investors - Stimulate demand for buying and selling stocks In general, there are two types of investors: individual investors and institutional investors - Individual investors: individuals, households, representatives of organizations - Institutional investors: insurance companies, financial companies, superannuation funds, investment funds We need to pay attention to attracting both of these types and it is important that we understand the characteristics and dynamics of investors. The characteristics of institutional investors are large-scale investments with high professionalism, while individual investors often have a small investment scale and lack of resources. Therefore, when attracting individual investors, attention should be paid. - Professional advice including conceptualizing stock investments, key analysis and investment decision support - Create trust for investors through an open, easy, clear and transparent information system - Establishing and developing an investment type as an individual investment organization. We not only focus on domestic investors but also pay attention to foreign investors, but to attract foreign investors, it is necessary to have appropriate and synchronous strategies and policies. + In terms of strategy: it is necessary to synchronously develop the stock - currency - foreign exchange market as well as the connection between these three markets and move towards a freely convertible currency. + Regarding policies: a synchronous and appropriate combination of tax policies, foreign exchange policies, and healthy policies, only improving the investment environment, especially making the company's financial information healthy. , all with the goal of creating confidence and minimizing risks for investors. That said, if it is merely attracting investors, it does not necessarily create development for the stock market.
