re: #736 researchok

Bagua, there is a difference.

Stocks and bonds are real ownership. Management is accountable to stock and bond holders.

Derivatives and other instruments are predicated on trading paper only, far removed from ownership.

Nonsense. The options are very real privileges to sell or buy those same stocks at set prices with set expiration. The only difference is the owners option not to buy or sell and the stocks float and have no expiration. The stocks themselves are paper and the average owner has no voice, only the majority owners. Basically they are derivatives of a derivative.

The average investor cares nothing about influencing ownership, they are speculating on pieces of paper. If I have an in the money leap option on Walmart, it behaves essentially the same as owning the stock, adjusted by the applicable greeks.