Derivative

From Bogleheads

Derivative

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.

- from [Investopedia]

Links

• Derivative, on Investopedia
• Derivative (finance), on Wikipedia
• Definitions of derivatives on Google

How to Cite

You can link to this page from the Bogleheads Forum by copying and pasting the following text into your forum posting:

Please see [url=http://www.bogleheads.org/wiki/Derivative]Derivative[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].

Notice something that needs correcting? Notify a wiki editor or become a wiki editor and fix it yourself!