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 ?
Investments may be implemented through pooled investment instruments or directly in underlying securities.
The Units, the Compensation Warrants and underlying securities are subject to a customary four months and a day hold period.
The Units and underlying securities are subject to a customary four months and a day hold period.
Prices of a Fund's underlying securities go up and down over time.
Acting as joint book running managers were Barclays, Goldman Sachs & Co LLC and UBS Investment Bank for the offering that was made under an effective registration statement relating to the units and the underlying securities filed earlier with the US Securities and Exchange Commission.
The transaction is structured as pass-through repackaged notes, so the ratings of the notes are based on the credit quality of the underlying securities: EUR220.4 million of class A-1-A notes issued by Carlyle Euro CLO 2018-2 Designated Activity Company and rated 'AAAsf' by Fitch.
The price paid or received always reflects the value of the underlying securities. Not so with ETFs.
The transaction is anticipated to close within the week, subject to the fulfillment of certain closing conditions, including settlement of the underlying securities.
The Global Dynamic Allocation Funds are invested in five major markets around the world - Asia Pacific excluding Japan, Europe, US, and the emerging markets including Latin America, Eastern Europe, and the Middle East, with over 1,000 underlying securities for unparalleled access and diversification to the global markets.
Throughout its 10-year history in ETFs, Esposito has assisted funds in seeding, the creation and redemption of ETF shares, and executing trades in the underlying securities.
The fund will have among the lowest expense ratios of 0.5 percent when compared with MENA equity fund globally and will make annual distributions to unit holders based on income received from the underlying securities. QSE CEO Rashid Ali al Mansoori said,"Great thought and effort has gone into the development of an ETF market at Qatar Stock Exchange and a listing based on our main index was always going to be a proud moment.
The QETF, established by Doha Bank and managed by Amwal, will have among the lowest expense ratios of any Middle East and North Africa equity fund globally and will make annual distributions to unit holders based on income received from the underlying securities. As many as 60,885 QETFs valued at QR5.4bn traded across 186 transactions on the debut day.