What Economic Functions Are Fulfilled by Futures

question 14

Essay

What economic functions are fulfilled by futures?

---

Definitions:

Net Income

The net income of a business once all costs and taxes are subtracted from its total earnings.

Common Stock

A type of equity security representing ownership in a corporation, with holders typically having voting rights and a residual claim on corporate earnings.

Financing Section

Part of a cash flow statement that gives information on cash flows related to financing activities like loans, repayments, and issuing of stocks.

Cash Flows

The total amount of money being transferred into and out of a business, typically measured during a specific period for financial analysis.