7 trends that will revolutionize stock trading | Nightly Business Report

Think of dozens of different derivatives … of the same company.

Suppose Boeing has an exciting airline project that is riskier than most airline projects. One way to do this is to create different classes of shares that cover different risk profiles. There will be Boeing A Shares, Boeing B Shares and a Boeing R Share for higher-risk projects. Those will likely trade on public markets, at least initially.

This creates even greater opportunites. Why not merge stocks across different risk classes? Why not merge Boeing R shares with Ford R shares and have a new S&P 500 that would consist of nothing but higher-risk shares of a group of companies?

That’s just the beginning. There will be 100 S&P 500s broken down by different classes. You’ll be able to invest in a class of shares of ExxonMobilthat has exposure only to a carbon-neutral footprint. That will be a lot less profitable than investing in the part of Exxon that does, say, oil exploration and production, but it will be there.

So if you want exposure to that hypersonic aircraft from Boeing or that advanced electric car from Ford, you can do that.

Or you can ask for a portfolio that has a carbon-neutral footprint. Or you can ask that your profile be adjusted because you believe Brazil is going to explode and you want to account for that.

Where will it end? Every S&P company will have, say, 3,000 beta values. A Brazil beta value. A Thai beta value. Try doing that today!

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7 trends that will revolutionize stock trading | Nightly Business Report