what is the definition of derivative,
what is a security?
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Answer / surendra thiruveedhula
A derivative is a financial security whose price is derived
from an another asset.
The asset is called underlying asset which means stock,
bond,any marketable securities.
If the price of underlying asset changes,then the price of
derivative changes as well.
Many corporations go for financial derivatives, because the
risk would transferable between two parties.
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / prathiba
Derivatives means its an financial tool in which financial instruments take place like stock, bonds,agriculture commodities, crude oil, and so on and these are called as underlined Assets...
Security means which is being secure safety. For example we keep gold in bank for a particular period of time is called security.
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Answer / vishwa
Derivative is something extracted from a source. Security is hiding the private information.
| Is This Answer Correct ? | 1 Yes | 1 No |
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