derivative
derivative, n. A financial incantation that stuffs future risk into today's ledgers. Example: Executives boast of hedging risk with derivatives while shifting losses onto their subordinates. A derivative is a financial instrument derived from assets such as stocks or bonds, trading on predicted future price movements through arcane formulas. Its bewildering complexity serves as a black box to all but specialists, upholding the illusion of transparency. In theory it diversifies risk; in practice it acts as a bomb that accelerates the contagion and chain reaction of losses.