Stock Market and Derivatives
Why do investors buy and sell derivatives rather than the underlying assets? What is the difference between hedging and speculating?
Your initial post must be in your own words, be a minimum of 450 words in length, and be supported with a reference. Forum Instructions
Students must post a main response to the weekly discussion question by Day 3, and at least two replies to other students by Day 7. Active participation is required by replying to classmates during the week of discussion. Therefore, replies after the end of the each week will not be graded. The forums are for student interaction and submitting input after the end of the week serves no learning objectives and does not constitute as participation. Students should demonstrate their own knowledge in the forums and avoid copying and pasting from web sites. Responses will be graded directly from the Forums.
Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library. Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable or credible source of reference. The purpose is to bring in new information and how does it apply to our topic from a real-world perspective, instead of extending on definitions that are found in the book.
More information what a credible source consists of can be found here: http://writingcommons.org/evidence/supporting-sources/630-what-might-be-a-more-credible-reliable-source.