Financial Market Reporting, Part 6: Derivatives

Chicago Board Options Exchange
Chicago Board Options Exchange

My series at the Reynold’s Center continues with thoughts on reporting the derivative markets. These are┬áinvestment vehicles that are derived from others, appropriately called derivatives. Investors do not own the underlying asset, but bet on how that asset will perform.

 

 

Options are a common type of derivative.┬áIn 1973 the Chicago Board of Trade created the Chicago Board Options Exchange, which at first operated out of an old cloak room off the CBOT trading floor. The CBOE traded listed stock options. Unlike futures, options were not a commitment but gave the buyer an option to buy a stock for a certain period of time.* The option is based on the stock, called “the underlying.”

Continue at businessjournalism.org….

Financial Reporting Part 1

Today I take on a new project, writing about financial market reporting for the Donald W. Reynolds National Center for Business Journalism, which is based at the Walter Cronkite School of Journalism and Mass Communication at Arizona State University.

Hopefully these thoughts on my experiences over the years will be of value to journalists new to journalism, or just taking up an assignment on the business beat.
Please be gentle with your reviews!

Financial Reporting Part 1