New Dow Derivatives Sound Like a Risky Bet

I was under the impression (mistaken?) that since the Orange County financial debacle, “derivatives” was a dirty word. So I’m very curious when it surfaces once again under the esteemed banner of the Dow Jones (“Dow Jones OKs ‘Derivatives’ Trading Based on the DJIA,” June 6).

I read through with great puzzlement, as not only does it make no sense but makes much nonsense, as words like “bet” and “wager” crop up.

Now, correct me if I’m wrong, but is not the stock exchange a place to invest in a growth company--not a local betting parlor?

Perhaps some erudite sage would be so kind as to explain how derivatives are any different than wagering on which of two raindrops will hit the sill. No Wall Street gibberish, just good old Americanese.

GEORGE MARCO

Malibu