''DON'T INVEST MY PERSONAL CASH IN FUNDS WITH DERIVATIVES,'' SAY U.S. CORPORATE CONTROLLERS.MONTVALE Montvale may mean:
In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , says the Controllers Council of the Institute of Management Accountants The Institute of Management Accountants (IMA) is a professional organization headquartered in Montvale, New Jersey consisting of over 70,000 members worldwide. The IMA is dedicated to advancing the role of the management accountant and financial manager within the business (IMA (Interactive Multimedia Association, Annapolis, MD) An earlier trade association founded in 1988 originally as the Interactive Video Industry Association. It provided an open process for adopting existing technologies and was involved in subjects such as networked services, scripting ), which surveyed 474 companies. Only 15 percent of controllers said they felt confident enough to invest their money in those funds. Twenty-seven percent of the controllers had no opinion. Derivatives are complex financial instruments whose returns are tied to, or derived from, the price of some other asset, such as stocks, bonds, currencies, or commodities. ``These highly controversial financial instruments are used to manage an organization's financial risk or asset diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. ,'' said Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Jayson, director of IMA's Controllers Council. ``In a previous survey, our members said their own companies were reluctant to use financial derivatives; first, they were not consistent with their organizational objectives and second, derivatives were too risky and too complex,'' noted Jayson. Surveyed companies range in size from approximately $1 million to more than $10 billion in annual revenue/sales. IMA's Controllers Council has 2,200 members and is composed of corporate officers responsible for investments, cash, and budgets. With 84,000 members, IMA is the world's largest organization of management accountants and financial managers. Founded in 1919, IMA is based in Montvale, N.J. CONTACT: Institute of Management Accountants, Montvale Daniel M. Hrisak, 1-800-392-5078 |
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