when you buy crypto where does the money go, Knowledge

2. The function of capital accumulation and resource allocation in the stock market.1. The nature and risks of derivative financial products

1. The economic barometer function of the stock market icon(All text materials are automatically generated by ai intelligence)First, the basic position of the stock capital market

The 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.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.Stock capital market: if the stock price base does not rise, all other derivatives will be zero.