In recent decades, an ever-increasing proportion of the profits of private banks has been generated by financial activities far beyond mere borrowing and lending of money. Commercial banks generate their profits through the endogenous creation of credit and through the trading of foreign exchange and, in particular, securities and derivatives. ...
The “financial deregulation” since the 1970s has
paradoxically in themselves the capacity and increase the demand for
regulation, regulatory instruments, and regulatory agencies. The
strengthening of market mechanisms at all levels requires a number of
public, sub-state, and especially private, companies and institutions
whose duplication and dissemination take on the ...
An option is common form of a derivative. It’s a contract, or a provision of a contract, that gives one party (the option holder) the right, but not the obligation to perform a specified transaction with another party (the option issuer or option writer) according to specified terms. Options can