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In a more ELI5 sense, would it be true to say that derivatives are not "real money" in the same sense that company valuations are not? Company valuations are p
by api 11y ago
In a more ELI5 sense, would it be true to say that derivatives are not "real money" in the same sense that company valuations are not?
Company valuations are projections created through some combination of extrapolation of growth or value and (often in the earlier stages) just agreeing on a number to make the percentages and such work out correctly. They are expressed as a dollar amount but those are not real dollars.