derivatives

derivatives definition - finance
Financial instruments whose performance is derived, at least in part, from the performance of an underlying asset, security, or index. For example, a stock option is a derivative because its value changes in relation to the price movement of the underlying stock. Futures contracts also obtain their value from the underlying product.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments


Do you have more to add? Sign in to share your linguistic knowledge or observation.

Connect with Facebook