In finance, a derivative is a financial instrument (or, more simply, an agreement between two parties) that has a value, based on the expected future price movements of the asset to which it is linked-called the underlying asset-such as a share or a currency. There are many kinds of derivatives, with the most common being swaps, futures, and options. Derivatives are a form of alternative investment.
A derivative is not a stand-alone asset, since it has no value of its own. However, more common types of derivatives have been traded on markets before their expiration date as if they were assets. Among the oldest of these are rice futures, which have been traded on the Dojima Rice Exchange since the eighteenth century.
Derivatives are usually broadly categorized by:
* the relationship between the underlying asset and the derivative (e.g., forward, option, swap);
* the type of underlying asset (e.g., equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives or credit derivatives);
* the market in which they trade (e.g., exchange-traded or over-the-counter);
* their pay-off profile.
Another arbitrary distinction is between:
* vanilla derivatives (simple and more common); and
* exotic derivatives (more complicated and specialized).
ERC is the abbreviation for "earnings response coefficients" in terms of finance and financial accounting theory.
SLF = Syndicated and Leveraged Finance
In business terms, PX means price.
Accruals are considered (in terms of finance) as liabilities or assets, which still have to be paid. They are however recognized before they have even been paid. This is due to the extremely high likelihood of payment by well-known customers.
In personal finance terms a mortgage is usually called a long term loan in order to buy a home or perhaps an office building. Generally speaking, a bank will grant mortgages to individuals.
Guarantee in terms of business finance
expand of ARD in terms of finance/real estate
Erik Banks has written: 'Finance' -- subject(s): Finance 'Financial Lexicon' -- subject(s): Dictionaries, Finance, Managerial economics, Acronyms, Business law, Commercial law 'Exchange-traded derivatives' -- subject(s): Derivative securities, OverDrive, Business, Finance, Nonfiction 'Credit Derivatives' 'Finance' -- subject(s): Finance 'Catastrophic Risk' -- subject(s): OverDrive, Business, Finance, Nonfiction 'The Credit Risk of Financial Instruments (Finance & Capital Markets)' 'The Failure of Wall Street' 'Credit derivatives' -- subject(s): Risk management, Credit derivatives 'The Simple Rules of Risk' 'The emerging fixed-income markets in Asia' -- subject(s): Fixed-income securities, Economic conditions, Capital market, Asia, Bonds 'Dark pools' -- subject(s): Capital market, Liquidity (Economics), Risk 'Synthetic and structured assets' -- subject(s): Securities, Structured notes (Securities), Derivative securities, OverDrive, Business, Finance, Nonfiction 'The Options Applications Handbook' 'The Credit Risk of Complex Derivatives (Finance and Capital Markets Series)' 'Corporate governance, financial repsonsibility, controls and ethics' -- subject(s): Business ethics, Corporate governance 'Liquidity Risk'
YAWA!!
A structured product is also know as a market linked investment, is generally a pre-package investment strategy based on derivatives such as a single security, as it relates to finance.
The term "derivatives" is hard to define because it has multiple applications in different fields. For example, in math, a derivative is defined as the slope at a point. In finance, however, the term has many meanings including a type of contract.
Penny Davenport has written: 'A Practical Guide to Collateral Management in the OTC Derivatives Market (Finance and Capital Markets)'
The only derivatives of the verb 'est', which means '[he/she/it] is', are other forms of the infinitive 'esse', which means 'to be'. For example, 'esto' may be the second or the third person singular form in the future imperative tense. In terms of the second person, it translates as '[you] shall be'. In terms of the third, its translation is '[he/she/it] shall be'.
ERC is the abbreviation for "earnings response coefficients" in terms of finance and financial accounting theory.
A Taylor expansion is a way of representing a function in terms of a sum of its derivatives. Please see the link.
It refers to money or finance. As in; She did the job for pecuniary gain.
no