Search results for 'derivative':

derivative (noun) : A highly risky hedge vehicle used to avoid government regulations by the private sector, having no intrinsic value in itself, and tied to the value of an underlying asset, from which the value of this private contract gains or loses value for one of the two parties.

JP Morgan has 32 Trillion Dollars in derivatives exposure in notional value, which is only reported as a footnote in their annual report, as there are no governmental regulations covering derivatives nor specific reporting requirements by the SEC other than a statement of the fact.

Submitted by: Anonymous on Mar. 19, 2006 17:57

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