<p>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.</p>

<p>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?</p>

<p><strong><em>Please note that I'm referring to research/analysis that focuses on the financial product.</em></strong></p>

<p><strong><em>Edit - 2015/05/29:</em></strong> 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? </p>

CC BY-SA 3.0
2015-05-27T16:11:07.133Z
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.
RegressForward
CC BY-SA 3.0
2015-05-27T16:29:53.347Z
I'm interested in doing a theoretical analysis of, for example, a derivative that someone invented, this won't have any historical data.
CMPSoares
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2015-05-29T08:11:39.793Z
Your question might be more suited to http://quant.stackexchange.com/
Giskard
CC BY-SA 3.0
2015-05-29T09:05:45.257Z
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.
Lumi
CC BY-SA 3.0
2015-05-29T09:12:58.280Z
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... :-/
CMPSoares
CC BY-SA 3.0
2015-05-29T10:41:03.093Z
Is it specifically for banks, or for trading? The basel capital tiers have very specific requirements for the instruments that can be used there.
Lumi
CC BY-SA 3.0
2015-05-29T16:31:03.533Z
Well both. I want to analyse a newly developed instrument that's not in the market yet.
CMPSoares
CC BY-SA 3.0
2015-05-29T16:36:01.240Z
How were all those other instruments analysed before they put it on the market?
CMPSoares
<finance><markets><financial-markets><stock-market><corporate-finance>
What topics are important to analyse a financial product?
CMPSoares
# What topics are important to analyse a financial product?

(Asked by: username_0 on 2015-05-26)

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?

**Tags:** finance, markets, financial-markets, stock-market, corporate-finance

> **Comments:**
> **username_1**: 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.  
> **username_0**: I'm interested in doing a theoretical analysis of, for example, a derivative that someone invented, this won't have any historical data.  
> **username_2**: Your question might be more suited to http://quant.stackexchange.com/  
> **username_3**: 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.  
> **username_0**: 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... :-/  
> **username_3**: Is it specifically for banks, or for trading? The basel capital tiers have very specific requirements for the instruments that can be used there.  
> **username_0**: Well both. I want to analyse a newly developed instrument that's not in the market yet.  
> **username_0**: How were all those other instruments analysed before they put it on the market?  

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## 0 answers

