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To: arete
Can anyone explain was a derivative is in two sentences?

Chase is one of the banks I use. When I went to their bank Friday they had 5 people greeting folks at the door. This has never happened in 10 years. If they don't have problems they sure seemed concerned.

I hope these banks are OK. But I expect my bankers to be stern, conservative and careful. So, I moved anything that I could that was short term and uninsured out. So were other people. I could hear them doing it.

10 posted on 07/28/2002 3:46:50 PM PDT by isthisnickcool
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To: isthisnickcool
Can anyone explain was a derivative is in two sentences?

Not quite, it'll take 3.

Shares of stock, bonds, and physical commodities are assets, sometimes highly dubious ones I grant you, but they are characterized by having at least some market value in and of themselves. Derivative instruments, whether options, futures, swaps, swaptions, or whatever other kind, are so called because they do not have inherent value themselves, but rather derive their value from the underlying asset or market condition. Swaps and related instruments do not have an underlying asset as such; these items are essentially arbitrage instruments concerned not with the price of something, but rather with the price differential between two somethings.

Best I can do in three sentences, hope it's of some use to you, and FRegards!

17 posted on 07/28/2002 4:20:58 PM PDT by SAJ
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To: isthisnickcool
Derivatives.
21 posted on 07/28/2002 5:25:00 PM PDT by Torie
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To: isthisnickcool
"So, I moved anything that I could that was short term and uninsured out. So were other people. I could hear them doing it."

I shuffled some cash out of the bank myself.

35 posted on 07/28/2002 6:38:33 PM PDT by blam
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