by FinancialMagician August 26, 2020
(FINANCE) a financial instrument whose value is tied to something else; for example,
* a futures contract (future)
* an option
* a swap
In each of these examples, the value of the derivative is related in some way to the price of something else. When the market price of (say) an ounce of gold goes from $1000/oz to $1050/oz, the return to the owner of 1 oz. of actual gold is 5%. But for the owner of a call option or a future, the return is much, much greater than that.
A derivative can be used to multiply risk AND potential profits to speculators; but it can be used for the counterparty to minimize risk by locking in prices, or by hedging against risk.
* a futures contract (future)
* an option
* a swap
In each of these examples, the value of the derivative is related in some way to the price of something else. When the market price of (say) an ounce of gold goes from $1000/oz to $1050/oz, the return to the owner of 1 oz. of actual gold is 5%. But for the owner of a call option or a future, the return is much, much greater than that.
A derivative can be used to multiply risk AND potential profits to speculators; but it can be used for the counterparty to minimize risk by locking in prices, or by hedging against risk.
by Abu Yahya April 05, 2010
what you get when the school financial offices f*ck you over! Often occurring during the process of taking your arm and/or leg for tuition payment.
symptoms include...yelling, cussing, gasping and then saying WTF? when you open your mail, the strong urge to egg the financial building, cobwebs growing in your wallet, eating ramen noodles for two out of three meals for the day, etc.
symptoms include...yelling, cussing, gasping and then saying WTF? when you open your mail, the strong urge to egg the financial building, cobwebs growing in your wallet, eating ramen noodles for two out of three meals for the day, etc.
by college owns my soul February 05, 2010
The gradual conversion of your wealth and possessions to the government, through taxes, inflation and unjust laws.
Due to financial erosion, I opted to not maintain my property while I scrape up the cash to pay the property taxes.
by Stephan Smolka January 06, 2009
1.what the middle class cannot get and therefore, they are screwed when they need to go to college. Middle class is toor poor for ai, but not rich enough to afford it.
by hithere April 25, 2005
A person who learns about money only to find that people make random emotional decisions. The sacrificial lamb of the urban jungle. When financial markets are up, even the most ignorant advisor looks like a hero. When markets are down, the most professional and savvy advisor will be trash talked, fired and sued.
Hey, how come you're driving that piece of crap car?
I was a financial advisor in 2008.
Hey, who's that guy in the Mercedes?
That was a financial adviser who retired in 2007.
I was a financial advisor in 2008.
Hey, who's that guy in the Mercedes?
That was a financial adviser who retired in 2007.
by Bluetired February 18, 2010
THE biggest pain in the ass, tedious governemnt program possibly ever. Designed to discourage the poor from going to college. Full incompetency among government and college-employees is exhibited in the process of dealing with financial aid.
Anrgy broke college student: "After re-filling out my twelve page FAFSA, they made me re-do it because they got my social security number mixed up. That was just the beginning of my issues with fucking financial aid."
by Alyse T. January 04, 2009

