Reading 46 Example 13

Hi,

For question 13.1 why are hedge funds, mutual funds and stock option contracts not classed as ownership in corporations?

13.3 what about CFDs and ETFs, aren’t these created by traders as well?

13.5 what about gold, why isn’t it real as well?

13.6 what about interest rate swaps to hedge interest rate risk?

13.1 Hedge Funds and Mutual funds take their customers money and invest if for them, I am not sure that this necessarily contitutes ownership (although they might buy stocks with your money- but I don’t think you get any claims of ownership that way). Options are conditional contracts, that is you could buy a share of a corporation if you chose to do so, but you haven’t yet (currently you have the option to do so).

13.6 I would argue that you are referring to financing costs, not construction costs.