The Big Short: Inside the Doomsday Machine Themes

Michael Lewis (author)
This Study Guide consists of approximately 25 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of The Big Short.
This section contains 620 words
(approx. 2 pages at 400 words per page)
Buy The Big Short: Inside the Doomsday Machine Study Guide

Investing

Investing is the act of buying stock in a company and gaining a profit should the price of the stock go up before you sell it or losing money should the price go down. The same is true in bonds, but the difference is that the investor does not always have a clear idea of how much a bond is worth because unlike stock prices, the price of a bond is not shown on a ticker tape display and updated every few seconds.

Trading bonds is supposed to be a safer way to invest. However, when someone dreamed up the mortgage bond, no one fully understood the implications of the different elements of each mortgage that was then packaged with a hundred others. The use of FICO scores to rate the risk of a mortgage bond could be misleading since FICO scores rarely show the entire picture of...

(read more)

This section contains 620 words
(approx. 2 pages at 400 words per page)
Buy The Big Short: Inside the Doomsday Machine Study Guide
Copyrights
BookRags
The Big Short: Inside the Doomsday Machine from BookRags. (c)2016 BookRags, Inc. All rights reserved.