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Derivative

A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
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

derivative

An asset that derives its value from another asset. For example, a call option on the stock of Coca-Cola is a derivative security that obtains value from the shares of Coca-Cola that can be purchased with the call option. Call options, put options, convertible bonds, futures contracts, and convertible preferred stock are examples of derivatives. A derivative can be either a risky or low-risk investment, depending upon the type of derivative and how it is used. See also underlying asset.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Derivative.

Derivatives are financial products, such as futures contracts, options, and mortgage-backed securities. Most of derivatives' value is based on the value of an underlying security, commodity, or other financial instrument.

For example, the changing value of a crude oil futures contract depends primarily on the upward or downward movement of oil prices.

An equity option's value is determined by the relationship between its strike price and the value of the underlying stock, the time until expiration, and the stock's volatility.

Certain investors, called hedgers, are interested in the underlying instrument. For example, a baking company might buy wheat futures to help estimate the cost of producing its bread in the months to come.

Other investors, called speculators, are concerned with the profit to be made by buying and selling the contract at the most opportune time. Listed derivatives are traded on organized exchanges or markets. Other derivatives are traded over-the-counter (OTC) and in private transactions.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

derivative

a financial instrument such as an OPTION or SWAP whose value is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FORWARD MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity etc. prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), EUREX.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

derivative

a financial instrument such as an OPTION or SWAP the value of which is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FUTURES MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity, etc., prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), STOCK EXCHANGE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Derive's math repertoire includes numerical and symbolic algebra, exact and approximate arithmetic, calculus, trigonometry, and matrix algebra.
Derive also sequentially numbers each expression you work on.
Griffin uses Derive's symbolic and calculus capabilities for his signal processing analyses.
One characteristic that makes Derive easy to use is its use of logical syntax for its expressions.
As in earlier versions, Derive annotates each expression in an algebra window with its derivation.
Changes in Derive for Windows include the standard Windows items you see on other applications, such as a command toolbar, substitution dialogs, file-menu commands, and a context-sensitive help menu.
The efficiency of Derive's symbolic processing algorithms is also reflected in its portability.
Triangular rule: Like the treaties with Luxembourg and South Africa, this rule imposes a 15% withholding tax when a resident of one CS derives dividends.
Triangular rule: Like the treaties with Luxembourg and Switzerland, this rule imposes a 15% withholding tax when a resident of South Africa derives interest or royalties from the U.S., the income is attributable to a PE in a third jurisdiction, and the profits of that PE are subject to an aggregate effective tax rate in South Africa and the third jurisdiction that is less than 50% of the general rate of company tax applicable in South Africa (i.e., for treaty benefits to apply, the aggregate tax rate must be at least 17.5%, 50% of the South Africa normal tax rate of 35%).
When a Luxembourg resident derives income or owns capital that may be taxed in the U.S., Luxembourg will exempt such items from tax, but in determining the applicable tax rate, Luxembourg may include those items in income.(95) When a Luxembourg resident derives dividends or interest that may be taxed in the U.S., Luxembourg will allow a deduction from its tax for the tax paid in the U.S., not to exceed that part of the Luxembourg income tax computed before the credit attributable to the income items derived from the U.S.(96) Luxembourg exempts U.S.-source dividends paid to Luxembourg companies, if the recipient has held directly since the beginning of its accounting year at least 10% of the payer's capital, and the payer is subject to U.S.
The second, and related problem, derives from Lipset's apparent confusion about the meaning of exceptionalism itself, which leads him to draw matters into his discussion which seem to have no place there.