what are cryptos in the stock market, Overview

The stock market also has the function of resource allocation. The rising stock market can guide the flow of funds to enterprises with good efficiency and development potential, and realize the optimal allocation of resources. When the stock price does not rise, the flow of funds may be stagnant or disorderly, and those high-quality enterprises that should have been supported by funds may be ignored, resulting in waste of resources and inefficient allocation.1. The nature and risks of derivative financial productsThe existence and development of derivative financial commodity market is based on the stock market. The stock market provides the pricing basis and trading objects for derivative financial products. If the stock market does not rise, derivative financial products will lose the source of their price changes. For example, stock index futures are futures contracts with the stock index as the target. If the stock index does not rise for a long time, it will be difficult to attract investors and its market value will be greatly reduced.

According to the research report of financial institutions, the trading volume of derivative financial commodity market usually drops sharply during the period of stock market downturn. This is because investors' income expectations of derivative financial products have decreased, while risk aversion has increased. For example, during the global financial crisis in 2008, the stock market plummeted, and the markets of derivatives such as futures and options also fell into chaos. Many investors suffered heavy losses because of the transactions of derivatives.According to the research report of financial institutions, the trading volume of derivative financial commodity market usually drops sharply during the period of stock market downturn. This is because investors' income expectations of derivative financial products have decreased, while risk aversion has increased. For example, during the global financial crisis in 2008, the stock market plummeted, and the markets of derivatives such as futures and options also fell into chaos. Many investors suffered heavy losses because of the transactions of derivatives.Second, the dependence of derivative financial products on the stock market

In the complex and charming financial world, the stock capital market is like the cornerstone of a magnificent building, while other derivative financial products are like building structures attached to this cornerstone. Once the stocks in the stock capital market do not rise, those seemingly diverse and exquisite other derivative financial products are almost equal to zero.The stock market is an important channel for enterprises to raise funds. By issuing stocks, enterprises can gather idle funds in society for expanding production and developing new technologies. For example, in the early development stage, Tesla icon invested a lot of money in the research and development of electric vehicle technology and the construction of production base through financing in the stock market. The growth of a large number of enterprises depends on the capital supply of the stock market. If the stock market does not rise, the financing ability of enterprises will be limited, and new investment projects may not be started, which will affect the innovation and development of the whole economy.First, the basic position of the stock capital market