Definitions for "Derivative Security"
A financial asset whose value is based on an underlying asset. Options and futures are examples. Finance By Example (Archives): Bankers Trust Pays $67 Million to Settle Dispute
PUTS, CALLS, STRADDLES, OPTIONS, WARRANTS, CONVERTIBLE SECURITIES, and STOCK APPRECIATION RIGHTS (SARS). Rule 16a-1(c). A derivative security also includes similar rights that have an exercise or conversion privilege at a price that is related to an underlying security. It does not matter if the rights are presently exercisable.
A financial instrument or security whose character... Add a comment