underlying security

underlying security

For options, the security that is subject to purchase or sold upon exercise of an option contract. For example, IBM stock is the underlying security for IBM options. For Depository receipts, the class, series, and number of the foreign shares represented by the depository receipt.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: General Finance
Company: Bloomberg
Product:
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Related terms

underlying

Financial services; General Finance

What supports the security or instrument that parties agree to exchange in a derivative contract.

underlying

Language; Dictionaries

Lying under or beneath; hence, fundamental; as, the underlying strata of a locality; underlying principles.

security

Convention; Conferences

A system of protecting people or property against crime, attack, or danger. Security is often in place for events to protect exhibits and can include guards, surveillance cameras, ...

security

Banking; Investment banking

Instrument that signifies an ownership position in a corporation (stocks or shares), a creditor relationship with a corporation or government body (bonds), or rights to ownership ...

hardship assistance

Financial services; General Finance

A financial assistance given out in times of personal fincancial hardship, e.g. loss of job, insurance, or property.

government grants

Financial services; Accountancy; Finance; General Finance

Awards of financial assistance in the form of money by governments to an eligible grantee with no expectation that the funds will be paid back. This does not include technical ...

bankers' acceptances (BA)

Financial services; General Finance

Sometimes known as time drafts, these are bearer-form short-term non-interest-bearing notes sold at a discount, redeemed by accepting banks for full face value at maturity.

bed and breakfast deal

Financial services; General Finance

The sale of a share and its repurchase shortly after the beginning of a new tax year. This allows shareholders to register a capital loss or profit for tax purposes while ...

Bank for International Settlements (BIS)

Financial services; General Finance

An international organization that fosters international monetary and financial co-operation and serves as a bank for central banks and international financial organizations. It ...