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.

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.
References in periodicals archive ?
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.
The target firm, the expertise of which is asset management, has a strong global network of private as well as institutional clients and is known for its online trading platform for equity, bond, forex and derivative securities in over 80 markets globally, Lexinta noted.
The National Depository Center of Azerbaijan and Azerbaijan-based Invest-AZ inked a collective deal on the arrangement and execution of trade with derivative securities (commodity and currency), clearing and accounting on them.
Dubai's Mashreq is reportedly suing Dutch financial services company ING Groep NV over a $43 million investment loss tied to derivative securities.
An introduction to derivative securities, financial markets, and risk management.
SSgA said that the Index, which excludes commercial paper, derivative securities, notes, taxable municipals, and variable rate debt, will be reviewed and rebalanced monthly.
In such a risk-neutral world the relevant discount rate is the risk-free rate of interest, and one can easily price any derivative securities.
In his book American-Style Derivatives: Valuation and Computation, Jerome Detemple presents the subject areas of financial engineering and investment finance with "an extensive treatment of the theoretical and computational aspects of derivative securities pricing" (p.
In his new role, Roelke will be responsible for selling of equity derivative securities, such as ETFs and OTC options and swaps.
In 1991, Section 16(b) was changed to give options (and other derivatives) the same status as stock; the SEC recognized "that holding derivative securities is functionally equivalent to holding the underlying equity securities for purposes of Section 16(b), since the value of the derivative securities is a function of or related to the value of the underlying equity security.
The influence of option-pricing theory on finance practice has not been limited to financial options traded in markets or even to derivative securities generally.
The advice contains proposals on disclosure requirements related to schedules for derivative securities, offering programmes, wholesale debt securities and a proposal for minimum disclosure requirements for equities when they are linked to some other product such as an underlying instrument.