Stocks are a type of securities that gives stockholders a share of ownership in a company. For example, if a company has 1000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company’s assets and earnings.
There are 2 types of stock: common stock, preferred stock

Common stock gives voting rights to shareholders and their number of votes directly related to the number of shares owned. Stockholders thus have the ability to exercise control over corporate policy and management compared to preferred shareholders. Owners of common stock receive dividends from the company's profit but dividends are typically not guaranteed and could be changed or eliminated. A holder of common shares of a company receives a share of proceeds from a sale of the company’s remaining assets following liquidation of the company pursuant to Article 28 of company law.

Preferred stock comes with constant dividends and no voting rights. Preferred stockholders have a higher claim to asset distribution than common stockholders following liquidation of the

A bond is a fixed income instrument that represents debt issued by companies and governments. By buying a bond, you’re giving the issuer a loan, and they agree to pay you back the face value of the bond on a specific date, and to pay you a periodic interest rate along the way. The most common types of bonds include municipal bonds and corporate bonds. Bond prices are an inversely correlated interest rate: when rates go up, bond prices fall and vice-versa.

A futures contract is a legal agreement to buy or sell a particular commodity asset or security at a predetermined price at a specified time in the future. Futures contracts detail the quantity of the underlying asset and are standardized to facilitate trading on a futures exchange. The futures contract buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Derivative instruments are new to the Mongolian stock markets

Investment fund means funds raised from the public in order to benefit from the advantages of working as a part of a group such as reducing the risk of investment by a significant percentage. Advantages of investment funds include professional investment managers, asset diversification and lower transaction costs. A fund manager oversees the fund and decides which securities it should hold in what quantities and when the securities should be bought or sold. Types of investment funds include private and mutual funds. A mutual fund is a fund with an investment policy that is prescribed by the management company and is managed according to the point of view of the fund manager. Investment through a private fund is made in accordance with the investment policy prescribed by the client in line with their objectives and restrictions.