What do you know of finance?

Clearly, this is not for those in the game, more for us amateurs:

1. What are derivatives?
2. How are SDRs used and by whom?
3. Are all dividends income payout?
4. What does macroeconomics track?
5. What is ‘shorting’?
6. Who regulates the futures market in your country?
7. Which is larger – futures or commodities?

These will take a bit longer to reply to this evening.

9 comments for “What do you know of finance?

  1. Twisted Root
    March 23, 2020 at 19:29

    So many trick questions with trickier answers which could be essay length.

    1. Synthetic instruments which are used instead of or in conjunction with stocks, bonds, currencies or commodities to create desired risk profiles. That is not to suggest that stocks bonds or currencies are necessarily in any way ‘real’ but you get the idea.
    2. Enable IMF and World Bank and the participating government drawers to manipulate currency.
    3. For tax purposes yes.
    4. Big stuff.
    5. Selling something you don’t own using #1 with the idea of buying back or or doing a contra closing at a lower price later. Detested by proper investors as it is believed that it creates artificial selling pressure.
    6. Not sure of the acronym of the current incarnation but it is the regulatory body which will fail at the precise moment it is needed by retail investors.
    7. At a guess futures by a lot.

    • March 23, 2020 at 21:00

      I thank you for those. Some tricky ones in there, yes.

  2. Robbo
    March 23, 2020 at 19:53

    2. Special drawing rights, in effect national banks’ bank accounts at the Bank of International settlements, denominated in a currency of its own.
    3. Not always, capital can be returned tonshareholders by a ‘special dividend’.
    5. Selling shares you don’t own with the plan to buy them at a lower price in time to cover the sale. Risky!

  3. Chuckles
    March 23, 2020 at 20:46

    1. Opposite of integrals.
    2. Children. They think they have them when they find a black marker pen.
    3. No,hardly ever, these days
    4. Don’t bother me with the details – assume a spherical economy…
    5. You take a tractor battery and a 24mm spanner, and a fresh pair of underpants…
    6. Astrologers and fortune tellers.
    7. Future commodities

  4. Chuckles
    March 23, 2020 at 21:27

    Great face for radio, and on the football team, I’m one of the drawbacks.

  5. Chuckles
    March 24, 2020 at 08:49

    Same thing as every night, pinky.

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