Money For the Rest of Us

Why Negative Prices Exist and What They Can Teach Us


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Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices.

Topics covered include:

  • How oil futures work and why the oil future prices fell below zero for the first time ever.
  • Why has the United States Oil ETF (USO) lost so much money.
  • How ETF authorized participants create new shares only so they can be shorted.
  • How storage problems for oil and electricity can lead to negative prices.
  • How negative interest rates are another form of negative prices.
  • Why sellers will pay buyers to deliver a service to them.
  • What financial lessons can we learn from negative prices.


Thanks to LinkedIn Learning and The Investor's Podcast for sponsoring the episode.

For show notes and more information on this episode click here.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Money For the Rest of UsBy J. David Stein

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