Derivative

Derivative

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Futures contracts, forward contracts, options and swaps are the most common types of derivatives.

This is auto-generated content. You can help to improve it.

0 0

Improve it

Add an image

Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: Stocks & securities
Company:
Product:
Acronym-Abbreviation:

Collect to Blossary

Other Languages:

Related terms

derivative

Banking; Investment banking

A derivative or derivative financial instrument is a generic term for synthetic financial products which are linked to one or more underlying instruments such as shares, bonds, ...

derivation

Education; SAT vocabulary

That process by which a word is traced from its original root or primitive form and meaning.

derivative

Education; SAT vocabulary

Coming or acquired from some origin.

derive

Education; SAT vocabulary

To deduce, as from a premise.

derivatives

Economy; Economics

Financial assets that “derive” their value from other assets. For example, an option to buy a share is derived from the share. Some politicians and others responsible for ...

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.

Terms in the News

Featured Terms

Harry8L

0
Terms
0
Blossaries
1
Followers

Industry/Domain: People Category: Actresses

Anne Hathaway

Anne Jacqueline Hathaway (born November 12, 1982) is an American actress and Academy Award winner. After several stage roles, she appeared in the 1999 ...