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DERIVATIVE INSTRUMENT
| Pronunciation (US): |  | (GB): | |
I. (noun)
Sense 1
Meaning:
A financial instrument whose value is based on another security
Synonyms:
derivative; derivative instrument
Classified under:
Nouns denoting communicative processes and contents
Hypernyms ("derivative instrument" is a kind of...):
instrument; legal document; legal instrument; official document ((law) a document that states some contractual relationship or grants some right)
Domain category:
jurisprudence; law (the collection of rules imposed by authority)
Hyponyms (each of the following is a kind of "derivative instrument"):
futures contract (an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date)
option (the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited)
