2
$\begingroup$

When reading analysis papers of financial product, derivative or stock, tangible or not, I noticed that a lot of those papers seem to have similar structures.

This got me to the question if there exists some sort a basis structure to use when analysing a financial product. Or if there are some important topics we need to take in account, to have our analysis accepted by the Financial and Economic communities?

Please note that I'm referring to research/analysis that focuses on the financial product.

Edit - 2015/05/29: As commented: I'm interested in doing a theoretical analysis of, for example, a derivative that someone invented, this won't have any historical data. Also, what is analysed when a central bank receives a proposal for a new product (i.e. new type of derivative)? What type of analysis is done? It's more in this sense, analysing a new formulation of a financial product that isn't on the market yet. How is this done?

$\endgroup$

closed as too broad by RegressForward, cc7768, VicAche, The Almighty Bob, Jamzy May 28 '15 at 4:29

Please edit the question to limit it to a specific problem with enough detail to identify an adequate answer. Avoid asking multiple distinct questions at once. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.

  • $\begingroup$ This is very broad. If you are looking to publish a paper, it takes decades of training, and a doctorate, usually. Usually your advisor will be able to transmit this tacit knowledge to you, choose him/her carefully. $\endgroup$ – RegressForward May 27 '15 at 16:11
  • $\begingroup$ I'm interested in doing a theoretical analysis of, for example, a derivative that someone invented, this won't have any historical data. $\endgroup$ – CMPSoares May 27 '15 at 16:29
  • $\begingroup$ Your question might be more suited to quant.stackexchange.com $\endgroup$ – Giskard May 29 '15 at 8:11
  • $\begingroup$ This is a very good question - there may not be an answer. Afaik, central banks don't receive proposals for arbitrary financial instruments - they probably should. They may have to pass muster by a regulatory authority, but quite often the main criteria is simply, can the inventor find a buyer. One example that may be interesting is hybrid capital for the purposes of meeting the Basel Tier requirement - there is a history of instruments being invented for this, and then being rejected by the central banks a few months later. $\endgroup$ – Lumi May 29 '15 at 9:05
  • $\begingroup$ As far as I know the português central bank (Banco de Portugal) receives financial instruments to approve. But in most cases you're right, they don't. I would like to develop a new financial instrument, and would like to analyse it before its presentation... :-/ $\endgroup$ – CMPSoares May 29 '15 at 9:12