What is Equity and Derivatives?

At Comfort Securities Limited, we understand that navigating the complexities of financial markets requires a solid understanding of key concepts.

Equity signifies ownership in a company through shares or stocks. Investors who hold equity in a company are entitled to a portion of its profits and assets, as well as voting rights in certain corporate decisions. Equity investments offer growth potential and income via dividends.

Derivatives are financial instruments whose value depends on other assets like stocks, bonds, or commodities. They include futures contracts, options, swaps, and forwards. Investors use derivatives to manage risk, speculate on price changes, and adjust exposure to market factors. But they come with risks due to their complexity and leverage.