During my vacation last April 06, I was having my early barako coffee while waiting for my friend to pick me up for a tennis game. One of my sons (BS-Music student) was reading a newspaper. I heard him say, “What the heck are these Fannie Mae, Freddie Mac, over-the-counter, etc.” He was at the business section of that newspaper.
I noticed that he went through it several times probably trying to see if there was something that would let him understand what those “heck words” were. After few minutes, he gave up. He approached me and asked. “Dad what are these words?” while pointing to them.
I told him, “Anak, I never heard about them either, in my entire banking career, never.” My son gave me a different look and said, “Okay, I know what you mean.” He went to his room, opened the computer. After few minutes, I heard him, “Aha, there you are!” He came back to me and said, “You made my day! How on earth you told me you did not now these terms.” Again, I told him “I told you, I never heard about them, right?“
Side Note Rant:
I was reminded of one incident that caused my failure to attend my son’s graduation few years’ back. The culprit was the one true-blooded IT person who thought he had a very good idea about what was needed for the new system we were asking. He had this kind of arrogance that pisses me off every time we met in meetings. As always, he talked like “Ernie Baron” who has the answer for everything at any given time.
As such, he did not bother to consult us on the business side of it because in his mind, he knew the ins and the outs of it. He talked good. Yes, the management was impressed.
When the project started, he found out that things were not as simple as it seemed while he was talking his way in. He learned that Corporate Actions alone have many types; cash dividend, stock dividend, splits (reverse/forward), merger, spin-off, etc. He was amazed that any of these could happen in a particular company at one particular record date. Days passed by. He got lost with other terms like puts, calls, assignment/exercise, the short, the long and many others (in combination with other terms).
What happened after and the lessons learned? I bet you know exactly what they are.