There are a lot of financial derivatives which exist and this article is going to list some important and popular ones . Keep in mind, these financial derivatives can be very complex and NO ONE understands it all. Financial Derivatives are instruments that are made from other substances and their value is also based on something
We’ve all heard the phrase, “Too Big to Fail,” which arose during the 2008 financial crisis. The phrase is used to describe why the government needed to bail out some companies. Before the crisis, these companies had greatly increased their profitability by creating, then selling complicated derivatives and traded risky loans, commodities, currencies and stocks.