Abstract
Financial markets let people trade promises of future payments. These payment promises are called financial assets. Prominent examples are bonds or company stocks. A bond is a way to borrow money, and it promises its buyer a future debt repayment with interest. Stock is used to raise capital and promises its holder future dividend payments. In addition to those, many other types of assets exist, but at their core they all are tradable contractual claims on future cash flows. Supply and demand determine the prices at which to buy or sell them—the prices at which to enter positions.
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Auer, M. (2018). Introduction. In: Hands-On Value-at-Risk and Expected Shortfall. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-72320-4_1
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DOI: https://doi.org/10.1007/978-3-319-72320-4_1
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Publisher Name: Springer, Cham
Print ISBN: 978-3-319-72319-8
Online ISBN: 978-3-319-72320-4
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