When the average Joe on the street thinks about derivatives he probably scratches his head and might even say “All I know is something about financial weapons of mass destruction,” and leave it at that. The term tends to conjure up fear like an unknown disease. It’s like a doctor with bad bedside manners who informs a patient he’s stricken with the Verruca Vulgaris Virus and then runs out of the room on an emergency call.
“Oh my God honey, Doc says I’ve got a case of Verruca Vulgaris and he seemed worried.”
“Honey, relax, he just told you the spots on your arm are warts.”
Derivatives conjure up the same fear with investors. It’s kind of a bad rap. First off, derivatives encompass hundreds of varieties from plain vanilla stock options to MBA, head-scratching monsters with names like Contingent Premium Calls and Barrier Options. For now, let’s leave those to the MBAs and commentators on CNBC.
- Audit Company Investigation Procedure Purchase
- Diversified Credit Investment
- Act Adviser Advisor Investment Overview Responsibility
- Barclays Investor Ivr Online Relations Vote
- Houston Investor Network