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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.


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For the TOBs whose long-term rating is based on credit enhancement from LBHI, the long-term rating will be revised to either the long-term rating of the underlying security within the TOB trust, if rated by Fitch, or withdrawn in those cases where Fitch does not rate the underlying security.
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.
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").
 
 
 
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