Also found in: Dictionary, Thesaurus, Acronyms, Idioms, Encyclopedia, Wikipedia.


1. Describing an out-of-the-money stock option. That is, it describes an option in which the underlying asset is a stock that is currently trading for less than the strike price of the option. For example, an executive at a publicly-traded company may have stock options in which he may buy the stock of his/her own company for $80 per share. If the stock is currently trading at $60 per share, the options are worthless.

2. Insolvent; unable to meet a financial obligation. The term especially applies to being unable to meet a margin call.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Of or relating to a stock option for which the option exercise price is higher than the market price of the stock.
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.


You're underwater when your employee stock options are out-of-the-money and so currently worthless.

For example, if you have options to buy your company stock at a strike price of $50, and the stock is currently trading at $30, you're $20 underwater on each option. You can see how the next step may be drowning -- financially speaking, of course.

The term underwater is also used to describe situations where the principals are unable to meet their financial obligations.

For example, if an investor is unable to meet margin calls on a margin account that has lost a considerable amount of money, the account is said to be underwater. Similarly a firm that is having financial difficulty is described as underwater.

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


A popular expression for a property with a debt larger than its value.You will sometimes encounter prime properties for lease,rather than for sale,because the property is underwater. The owners cannot afford to sell,because a sale at market value would require them to bring cash to the closing table to pay off the debt.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
On the basis of type, the global underwater robotics market has been segmented into autonomous underwater vehicle (AUV), and remotely operated vehicle (ROV).
"There are a lot of opportunities in the country and part of our commitment is that we promote the Philippines as a whole to the international diving community, more specifically look at two segments that we feel have a distinct advantage in underwater photography and beginner divers," Bengzon said.
He called for increased awareness on underwater resources to combat treasure hunting and build rapport among communities where cultural heritages are rightly safeguarded.
The necessity to prepare rules for underwater drones has surfaced as a similar issue to tackle, as there are almost no regulations on aspects such as where to use them.
"Then, ironically, when you're underwater, you have to forget all that thinking a bit, be flexible, and keep an open mind, and just keep shooting, because you do not decide the shot--the ocean does," he adds.
Aiming at commercialisation in 2020, Kawasaki is currently developing an AUV capable of underwater charging and transferring of inspection data to the mother ship - features that allow for longer deployment time - while autonomously locating and tracking pipelines at close range, including those buried under seabed sediment.
Visit Dubai Aquarium & Underwater Zoo to see the adorable babies in the aqua-nursery, and learn all about how they were born.
The Aqua-Lung would, for the first time, allow divers to stay underwater much longer than they could on a single breath.
To solve the above problems, a path control method of underwater Robot based on NURBS curve fitting method is proposed.
A team of 20 experts from the Crime Scene Department in Dubai Police will undergo special training to develop their skills in collecting evidence from underwater crime scenes.
Among the varied sounds available are underwater fireworks explosions, cyclones, air releases, and cracking ice;and fundamental water sounds including bubbling, bu