THE HEALTHY FUNCTIONS OF USING DERIVATIVE FINANCIAL PRODUCTS WITHIN THE NON-FINANCIAL COMPANIES. ARGUMENTS FOR USING THEM IN ROMANIA Cover Image
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THE HEALTHY FUNCTIONS OF USING DERIVATIVE FINANCIAL PRODUCTS WITHIN THE NON-FINANCIAL COMPANIES. ARGUMENTS FOR USING THEM IN ROMANIA
THE HEALTHY FUNCTIONS OF USING DERIVATIVE FINANCIAL PRODUCTS WITHIN THE NON-FINANCIAL COMPANIES. ARGUMENTS FOR USING THEM IN ROMANIA

Author(s): Cristina Sandu, Luminita Vanut
Subject(s): Economy
Published by: Addleton Academic Publishers
Keywords: derivative financial products; hedging, assets’ value; non-financial companies

Summary/Abstract: There are both advantages and disadvantages of using derivative products. The healthy functions the derivative products meet are: hedging the market risks, increasing the company’s value and improving the efficiency of the signals given by price. The dangers are: the bankruptcy of the companies using derivative products, the threat to the stability of the financial system and the increase of corruption within the financial system. This article aims to study the advantages of these products and, at the same time, to bring arguments for encouraging their use in Romania.

  • Issue Year: 9/2014
  • Issue No: 4
  • Page Range: 213-221
  • Page Count: 9
  • Language: English