Derivative security

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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 asset.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Derivative Security

Futures, forwards, options, and other securities except for regular stocks and bonds. The value of nearly all derivatives are based on an underlying asset, whether that is a stock, bond, currency, index, or something else entirely. Derivative securities may be traded on an exchange or over-the-counter. Derivatives are often traded as speculative investments or to reduce the risk of one's other positions. Prominent derivative exchanges include the Chicago Mercantile Exchange and Euronext LIFFE.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Appropriate adjustments were also made to all outstanding derivative securities of the company, including all outstanding equity awards and warrants.
In financial market derivative securities are also included whose value derived when the change in prices or other assets occur.
But even if they had, the problems caused by toxic housing-finance investments - subprime loans that were packaged and repackaged into securities of increasingly dubious and obscure value, along with derivative securities and vital short-term financing arrangements pegged to those packages - were large and metastasising.
AMC is also acquiring in the merger various series of outstanding preferred stock, common stock purchase warrants, and certain common equity derivative securities, and AMC is converting to common stock certain outstanding term loans it made in 2016 to RLJE and its subsidiary-borrowers.
He was a Founder of the Boston Options Exchange, an electronic marketplace for the trading of derivative securities, and served as its Chairman from 2004 to 2007.
Summary: TEHRAN (FNA)- The US Treasury Department cautioned that extension of sanctions against the Russian sovereign debt and Russian derivative securities may lead to adverse consequences not merely for the Russian but also for the global financial market and for US investors, as such statement is made in the report sent by the US Treasury to the US Congress, Bloomberg reported on Friday.
Kimple received a BBA in finance from Southern Methodist University and a MBA, with emphasis in finance and derivative securities, from SMU's Cox School of Business.
The SEC alleges that certain unknown customers of a Singapore-based broker-dealer and a U.K.-based broker-dealer were in possession of material nonpublic information about the impending acquisition when they purchased Fortress derivative securities known as contracts for difference in the days leading up to the public announcement.
Much of popular discussion about the losses caused by these derivative securities might fade away the profits associated with it.
Two ways that corporate insiders can achieve these goals are: 1) selling shares in the open market or 2) using over-the-counter derivative securities. The purpose of this paper is to understand insiders' motivation to use derivative securities and its implications for shareholders.
There are 19 articles: history of American corporate governance; blockholders and corporate governance; corporate takeovers and economic efficiency; payout policy; corporate liquidity management; corporate pension plans; bank capital and financial stability; contingent capital instruments for large financial institutions; counterparty risk; the industrial organization of the US residential mortgage market; investor flows to asset managers; exchange-traded funds; stock prices and earnings; information transmission in finance; insider trading controversies; security market manipulation; financialization of commodity markets; forward rate curve smoothing; optimal exercise for derivative securities. ([umlaut] Ringgold, Inc., Portland, OR)