Financial Dictionary

This dictionary contains:
24549
financial terms

Derivative




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.

RELATED TERMS
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Contract
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange.

Value
The worth or desirability of something expressed as an amount of money.

Security
Piece of paper that proves ownership of stocks, bonds, and other investments.

Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.

Asset
Is the taxable basis of a property, imposed by the municipality. Often it is at a fraction of the market value.

Market
1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies.

Index
In the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure.



SIMILAR TERMS
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DERIVADOS DEL MAIZ S.A.
DERIVADOS DEL MAIZ S.A. is an industrial company listed at Lima stock exchange in Peru.

Derivative instruments
Contracts such as options and futures whose price is derived from the price of an underlying financial asset.

Derivative markets
Markets for derivative instruments.

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 asset.



PREVIOUS AND NEXT TERMS
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Depreciation tax shield
The value of the tax write-off on depreciation of plant and equipment.

Depressed market
Market in which supply overwhelms demand, leading to weak and lower prices.

Depressed price
In the context of stocks, stock whose market price is low in comparison to stocks in its sector.

Depression
Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.

Deregulation
The reduction of government's role in controlling markets, which lead to freer markets, and presumably a more efficient marketplace.

Derivative

Derivative instruments
Contracts such as options and futures whose price is derived from the price of an underlying financial asset.

Derivative markets
Markets for derivative instruments.

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 asset.

Descending tops
A chart pattern which in which each successive peak in a security's price is lower than the preceding peak over a period of time.

Descriptor
A variable describing assets, used as an element of a risk index.

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This dictionary contains 24549 terms.







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