I stumbled upon this link and decided that it is best of fight fire with fire.

So, here, I will attempt to explain how to create a synthetic asset. Let's say we wish to make a copy of a share in Exxon Mobil- that is a security that mirrors the risk and return of Exxon Mobil shares.

Call the current market price of Exxon stock p.

Create a derivatives contract which includes:
1. The "right to buy" several Exxon shares in three months time at price p
2. The "obligation to buy" several Exxon shares in three months time at price p
The money we will make from selling at step 2 pays for our activities in step 1, the net cost is zero

What we are left with is a security that has cost us nothing but must correlate to the price movements Exxon shares because in three months time it will unavoidably be exchanged for Exxon Stock. In the meantime it is an asset with a market value which can be traded

I am sure this is the most boring entry yet to be published on Post-Newt. However when one considers the Socialist Youth of Scotland, it seems just right.