The security upon which a derivative (option, index, futures contract) or other security is based. Eg, an ASA option is based upon the price of ASA stock. The S&P 500 futures index is based upon the S&P 500 stock index.
The security subject to purchase or sale upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options. nderwriter (Investment Banker) - In a municipal underwriting, a brokerage firm or bank that acts as a conduit by taking the new issue from the municipality and reselling it. In a corporate offering, the underwriter must be a brokerage firm.
the stock, bond, index, or other financial instrument upon which a derivative such as an option is based. It is the underlying security that is subject to being bought or sold upon exercise of the option.
The security that must be delivered when another security is exercised. For example, if a call option is exercised, then the underlying stock is delivered to the call owner. Warrants, rights, options, and convertible securities all have underlying securities. For futures options, futures are the underlying security.
For options, the security subject to being purchased or sold upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options. For Depository receipts, the class, series and number of the foreign shares represented by the depository receipt.