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What are derivatives and how are they used?

Business

What are derivatives and how are they used?

Warren Buffet has described them as “financial weapons of mass destruction”. Robert Kiyosaki said that the subprime Morgage Backed Security (MBS) disaster was a result of them “exploding in financial institutions such as AIG and Lehman Brothers”. So, what exactly are derivatives? A derivative is a financial security with a

By Tom Alston