Seminar ID: 112445

What Is a Derivative?

What Is a Derivative?

Learn how a derivative can help generate cash flow.

Are you familiar with the term “derivative?” If you work in finance the term derivative is quite commonly used. It’s a financial instrument used globally by organizations of all kinds – from nonprofits and hospitals to multi-national corporations. Derivatives are most often used by entities to hedge their currency, commodity, or interest rate risk. They are also a relatively inexpensive vehicle used to speculate and earn a return over and above what traditional investment instruments may yield.  So, what is it? This white paper reviews what a derivative is and how they are used.