In a more ELI5 sense, would it be true to say that derivatives are not &quot;real money&quot; in the same sense that company valuations are not?<p>Company valuations are projections created through some combination of extrapolation of growth or value and (often in the earlier stages) just agreeing on a number to make the percentages and such work out correctly. They are expressed as a dollar amount but those are not real dollars.