It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
A synthetic investment simulates the return of an actual investment, but the return is actually created by using a combination of financial instruments, such as options contracts or an equity index and debt securities, rather than a single conventional investment.
For example, an investment firm might create a synthetic index that seeks to outperform a particular index by purchasing options contracts rather than the equities the actual index owns, and using the money it saves to buy cash equivalents or other debt securities to enhance its return on the derivatives.
Options spreads, structured products, and certain investments in real estate and guaranteed investment contracts can be described as synthetic products.
While they are artificial, they can play a legitimate role in an individual or institutional investor's portfolio as a way to reduce risk, increase diversification, enjoy a stronger return, or meet needs that conventional investments don't satisfy.
However, synthetic investments may carry added fees and add more complexity than you are comfortable dealing with.
tand firm and push forward.
The answer lies in the ability to continuously adapt while staying grounded in the solid core of proven experience.
That’s why SunGard is positioned at the very center of how finance and technology work today: We are the pivot point where a Silicon Valley approach meets finance to unleash your organization’s potential.
This is the mentality that led Rolling Stone’s Matt Taibbi to call Goldman Sachs “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. ”
originally posted by: onequestion
a reply to: FyreByrd
I figured it was just another pyramids scheme.
It just so happens that billionaires can afford to hide their schemes better and hire better attorneys to navigate our overly complex legal system.