Derivative security

Definition

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.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


Term of the Day

Municipal notes
Short-term notes issued by municipalities in anticipation of tax receipts, proceeds from a bond issue, or other revenues.

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