To: Shermy
Stupid question: what are hedge funds?
6 posted on
03/23/2007 1:08:12 PM PDT by
Señor Zorro
("The ability to speak does not make you intelligent"--Qui-Gon Jinn)
To: Señor Zorro
What is a hedge funds? It a little hard to explain. CO2 is listed as the commodity. You can buy or sell the commodity even thought you don't have physical possession of that commodity. How, you can also buy or sell options tied to the commodity. An option is the right to pay a certain price for the commodity at a future date. You can "hedge your bet" by buying the commodity at set price limit your lose by selling options. The money is made between cost and selling price of the two. If you are right you a huge amount of money but if you are wrong you lose a huge amount of money.
25 posted on
03/23/2007 6:44:21 PM PDT by
steveab
To: Señor Zorro
Unless you have at least 11 million in the bank...they want let you play.
To: Señor Zorro
Stupid question: what are hedge funds? In this case you grow a hedge and fools pay you to do it.
36 posted on
03/23/2007 10:25:08 PM PDT by
this_ol_patriot
(I saw manbearpig and all I got was this lousy tagline.)
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