Underlying security

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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.

Underlying Security

In a derivative or warrant, a security that gives value to the derivative or warrant. For example, in an option giving one the right to buy stock in Johnson and Johnson, the underlying security is the stock in Johnson and Johnson. An underlying security may be a stock or a bond.
References in periodicals archive ?
as Depositor (the "Depositor") and The Bank of New York Mellon, as Trustee (the "Trustee"), the Trustee has received notice from the Depositor that the Depositor has recently determined that the underlying securities guarantor of the Underlying Securities, Sprint Communications, Inc.
The Trust will deliver all underlying securities owned by the Trust to the underlying security issuer for redemption in connection with the tender offer by the underlying security issuer dated January 31, 2008 (the "Tender Offer") and the Trust will terminate.
Under the terms of the Trust Agreement, if the Call Warrant Holder chooses not to exercise the Call Warrants within 10 days after notice is given, the holders of Class A and Class B Certificates will receive Underlying Securities in kind, subject to appropriate minimum denominations of the Underlying Securities.
The Trust will deliver to the underlying security issuer all underlying securities selected for redemption in connection with the tender offer by the underlying security issuer dated January 31, 2008 (the "Tender Offer").
Debenture Backed 2003-16 Trust (the "Trust") (New York Stock Exchange Ticker Symbol "HJB"), announced today that a "Trust Wind Up Event" has occurred under the terms of the Trust Agreement governing the Trust and that the Trust will deliver the underlying securities to the Call Options holder on February 13, 2008 and terminate.
When the Fund sells an option, if the underlying securities do not increase (in the case of a call option) or decrease (in the case of a put option) to a price level that would make the exercise of the option profitable to the holder of the option, the option generally will expire without being exercised and the Fund will realize as profit the premium received for such option.
as Depositor (the "Depositor") and The Bank of New York Mellon, as Trustee (the "Trustee"), the Trustee has received notice from the Depositor that the Depositor has recently determined that the Underlying Securities Issuer of Concentrated Underlying Securities, Liberty Media, LLC, is no longer a reporting company under the Exchange Act and that the trust must therefore terminate.
Each of the Underlying Securities represents senior interest in an underlying pool of loans consisting of fixed and adjustable rate residential mortgage loans; small balance commercial, multi-family and mixed use loans; and installment contracts for the purchase of real property.
333% of the Underlying Securities (the "Class A-1 Allocation Ratio") and each Class A-2 Certificate was entitled to 14.
125% Trust Certificates (TRUCs) Series 2001-3, CUSIP # 89826T200 and New York Stock Exchange Symbol TZG announced that because the guarantor of the underlying securities held by the trust, Bellsouth Corporation, has elected to cease reporting periodic reports under certain sections of the Securities and Exchange Act of 1934, the securities held by the reference trust are to be liquidated.
00% Trust Certificates (TRUCs) Series 2001-4, CUSIP # 89826U108 and New York Stock Exchange Symbol TZI announced that because the guarantor of the underlying securities held by the trust, Bellsouth Corporation, has elected to cease reporting periodic reports under certain sections of the Securities and Exchange Act of 1934, the securities held by the reference trust are to be liquidated.
Such notices informed the holders of the Class A-1 Certificates and Class A-2 Certificates that they (i) possess certain rights to receive, in lieu of any liquidation proceeds owed under the trust agreement, their pro rata portion of the underlying securities of the trust and (ii) must elect by 3:00 p.