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Derivative Security

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A derivative security, also known as a derivative stock, is a financial instrument whose price is dependent on one or a number of underlying financial assets.

 


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 security.

Derivative Security A financial asset whose value is based on an underlying asset. Options and futures are examples.
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Derivative security
A financial security whose value is determined in part from the value and characteristics of another security, the underlying security.

Derivative security: A contract whose value depends on the performance of some other security, index, or other investment. For example, a stock option is a derivative security whose value depends on the value of the underlying stock.

Derivative Security: A derivative security, also referred to as a derivative, is a financial security whose value is based on, and determined by another security or benchmark.

A derivative security collateralized by a pool of high-yield bonds. Several classes of these obligations are issued for a single pool of bonds with different classes offering different yields and a different degree of credit risk.

A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.

1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security
3. Transaction Date (Month/Day/Year) ...

In finance, a derivative security or derivative is a contract that specifies the right or obligation between two parties to receive or deliver future cash flows (or exchange of other securities or assets) based on some future event.

Derivative or derivative security: An instrument, such as an option, futures contract, or swap, of which the criteria and value are determined by those of an underlying asset such as a stock, currency, or commodity.

Derivative or Derivative Security
A financial instrument or security whose characteristics and value depend upon the characteristics and value of an underlying instrument or asset, typically a commodity, bond, equity or currency.

CMOs are a mortgage derivative security consisting of several classes secured by mortgage pass-through securities or whole mortgage loans.

Replicating Portfolio A portfolio of securities (ordinarily more "basic" and from a more liquid market) that either (1) mimics the returns on a derivative security (static replication) or (2) is part of a trading strategy that mimics those ...

derivative security A financial security whose characteristics and value are dependent on the characteristics and value of an underlying security.

In finance, a vanilla option is a type of derivative security. Though the term is very widely used throughout the financial literature and the financial markets it lacks a precise definition.

Constant Proportion Portfolio Insurance - Constant Proportion Portfolio Insurance is also known as CPPI and is a type of derivative security, which offers exposure to an investment, while retaining less risk and guaranteeing capital investment.

The purchase or sale of a derivative security (such as options or futures) in order to reduce or neutralize all or some portion of the risk of holding another security.
Holding Company ...

To buy or sell short; that is to own or to owe some amount on an asset or derivative security.

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An acronym for 'certificates of accrual on treasury securities'. It is a zero-coupon Treasury-derivative security offered by Salomon Smith Barney.
Certificate of Deposit ...

A perfect hedge is one eliminating the possibility of future gain or loss. It involves purchasing a derivative security (i.e. option or future) in order to reduce or neutralize all or some portion of the risk of holding another security.

Take a position
To buy or sell short; that is to own or to owe some amount on an asset or derivative security.

See also: Derivative, Security, Option, Market, Underlying