Management Notes

Reference Notes for Management

Difference between Forward Contract and Future Contract – 10 Major Differences | Finance

Difference between Forward Contract and Future Contract

Difference between Forward Contract and Future Contract

What is forward contract and future contract with examples?

Forward Contract is a private agreement between two parties where one party agrees to buy and sell the underlying asset or commodity at a specified price on a specific future date. In simple words, we can say that a forward contract is one of the simplest forms of derivatives where the contract value depends on the spot or market price of the underlying asset.

A future contract is a contract generally made on the trading floor of the future in which the parties agree to exchange the asset for cash at a fixed price and at a future specified date. A futures contract is standardized in terms of the quantity, date, and delivery of the item.

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Difference between Warrant and Convertibles- Warrant Vs Convertibles | Derivative Securities

Difference between Warrant and Convertibles

Difference between Warrant and Convertibles

Warrant is an derivative security that gives the holder right to purchase specified number of shares at a stated price. Convertibles are the derivative securities in the form of bond or preferred stock which can be converted into specified number of shares of common stock on investor’s choice. Convertibles are the derivative securities in the form of bond or preferred stock which can be converted into specified number of shares of common stock on investor’s choice.

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