What Is The Difference Between CFDs and Shares?

While trading CFDs and shares both allow traders to profit from changes in stock prices, CFDs have several advantages over normal shares trading.

• Question 01

  What do shares represent in a business?

  Your Answer

  • A.Loan to the corporation

  • B.Ownership in the business

  • C.Voting rights in the government

  • D.Access to company loans

• Question 01

  What entitlement do shareholders have in terms of company assets and profits?

  Your Answer

  • A.Only access to company assets

  • B.No entitlement to any benefits

  • C.Share of company assets and profits

  • D.Voting rights only

• Question 01

  What is a key difference between CFDs and shares in terms of trading on margin?

  Your Answer

  • A.Traders need to put up the full value of the trade for CFDs

  • B.Traders can use leverage for shares

  • C.CFDs require a larger initial investment

  • D.Traders only need to put up a small percentage of the full value for CFDs

• Question 01

  Why can CFDs be considered riskier for traders compared to shares?

  Your Answer

  • A.They are listed on exchanges

  • B.They are subject to regulatory oversight

  • C.They are traded over-the-counter (OTC)

  • D.They have a central authority overseeing the market

• Question 01

  In terms of regulatory oversight, how are CFDs and shares different?

  Your Answer

  • A.CFDs are not subject to regulatory oversight

  • B.Both CFDs and shares have the same regulatory status

  • C.Shares are not listed on exchanges

  • D.Shares are not regulated

• Question 01

  Where are shares typically listed for trading?

  Your Answer

  • A.Over-the-counter (OTC)

  • B.In private markets only

  • C.Both on exchanges and over-the-counter

  • D.On private exchanges only

• Question 01

  How are shares typically purchased in most cases?

  Your Answer

  • A.Traders can use leverage to buy shares

  • B.Shares must be purchased in full

  • C.Traders only need to put up a small percentage of the full value

  • D.Shares are not available for purchase