The Interesting World of Finance

The world of finance amazes me all the time. I cannot help thinking about a saying of a friend of mine who once said that he could not understand why someone buys and someone else sells the same stocks at the same moment, think of it, the transaction happens at the same point in time. Needless to say, this transaction does not arise from a need to exchange goods or services, the parties just exchange financial assets. This is one of the most interesting phenomena I have ever seen in my life. This I cannot understand either. Information asymmetry, different technical and fundamental analyses, different expectations … Now, the thing that amazes me more is the mechanism by which speculators speculate on credit default swaps …