Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?

Yes

73%

No

4%

Doesn't matter to me

23%

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February 1, 2011

Options 'Too Risky'?

By Peter Chapman

Three-quarters of American retail investors have never traded options. That's according to a survey just released by TD Ameritrade.

The big broker hired an outside polling firm to canvas a random sample of affluent houses. A total of 650 respondents participated in the survey. The reasons cited for avoiding the derivative were three: Options are too risky, unnecessary or overly complex. The results mirrored those unearthed by TowerGroup last year in a survey of institutional investors it conducted for the Options Industry Council. TowerGroup interviewed representatives from 30 money managers, and learned that one-third eschewed options. Those firms on the sidelines said they avoided options because they were too risky and because there was bias within their firms against using options.

 

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