Derivative security

A financial security, such as an option, or future, whose value is derived in part from the value and characteristics of another security, the underlying security. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • derivative security — A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlyingasset. Bloomberg Financial Dictionary …   Financial and business terms

  • derivative — de·riv·a·tive 1 /də ri və tiv/ n: a contract or security that derives its value from that of an underlying asset (as another security) or from the value of a rate (as of interest or currency exchange) or index of asset value (as a stock index) ◇… …   Law dictionary

  • Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond …   Wikipedia

  • Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • derivative — An investment vehicle whose value depends on the value of an underlying asset or index. For example, a futures contract for the delivery of gold depends on the value of gold (the underlying asset). A futures option which, upon exercise, delivers… …   Financial and business terms

  • Derivative house — ‹ The template below (Astrology) is being considered for merging. See templates for discussion to help reach a consensus. › Astrology …   Wikipedia

  • derivative instrument — noun a financial instrument whose value is based on another security • Syn: ↑derivative • Derivationally related forms: ↑derivative (for: ↑derivative) • Topics: ↑law, ↑ …   Useful english dictionary

  • derivative — I. noun Date: 15th century 1. a word formed by derivation 2. something derived 3. the limit of the ratio of the change in a function to the corresponding change in its independent variable as the latter change approaches zero 4. a. a chemical… …   New Collegiate Dictionary

  • 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… …   Investment dictionary

  • derivative instrument — noun A security whose value is derived from one or more other, more fundamental, assets …   Wiktionary

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