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WHAT IS DERIVATIVE?
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Answer Posted / saurabh
Derivative is divided into two i.e. Derive + native =
Derivative. Derive is to obtained or generated and native
is the source i.e. the real asset on which its Value can be
determined.
A Derivative is a document the vale of which depends on the
prevailing market price of the underlying assets which it
consists.Example: A Single Derivative may contain 50 Shares
of a Company.
Derivative also contains :
Stock Derivatives
Currency Derivatives
Commodity Derivatives
First one contains Shares as underlying assets, second
contains Currency as underluing asset and the third
contains Commodities such as Gold, Grains, Oils, Sugar,
Rice, Wheat etc.as its underlying assets.
Well i would like to Highlight that this Practise should be
banned in India because just for enjoyment and abnormal
gains minority S (Traders) in these markets the
commodities prices have risen by more than 300% i.e. 3 to 4
times and poor people are deprived of a bare necessity i.e.
DAAL- ROTI....Real Pity....
| Is This Answer Correct ? | 9 Yes | 4 No |
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