What Are Financial Derivatives?

This weekend my wife convinced me to see Michael Moore’s movie about Capitalism. It had its good points, its bad points, and its silly points. One of the silly points was multiple purportedly smart people finding that they couldn’t explain what a financial derivative was.

Excellent plain-language explanation of some key financial instruments, specifically derivatives. Definitely worth a read if you’re confused by the financial argot being slung about these days.