answersLogoWhite

0

"Equity" means ownership. Anyone who holds one share of XYZ company owns a portion of the company. The word 'Derivative' in Financial terms is similar to the word Derivative in Mathematics. In Maths, a Derivative refers to a value or a variable that has been derived from another variable. Similarly a Financial Derivative is something that is derived out of the market of some other market product. Hence, the Derivatives market cannot stand alone. It has to depend on a commodity or an asset from which it is derived. The price of a derivative instrument is dependent on the value of the asset from which it is derived. The underlying asset can be anything like stocks, commodities, stock indices, currencies, interest rates etc.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

The difference between differential and derivative?

They are the same thing.


What is the difference between a definition and derivative?

a definition is what it means, a derivative is what it derives from, like a root word


What are the difference between buffer stock and safety stock?

no difference


What is the difference between anti-derivative and integral?

there is no diffference, i think...


What is the derivative of binary cross entropy and how is it calculated?

The derivative of binary cross entropy is calculated by taking the difference between the predicted probability and the actual label. This difference is then multiplied by the input data to get the derivative.


What is the difference between a unit of stock and a share of stock?

No difference. A unit of stock is called a share.


What is the difference between stock and inventory?

The difference between stock and inventory is that stock is what you have if you're selling items. Inventory includes what you have as your belongings.


What is difference between stock and a scion?

the difference between scion and stock is that scion is the cut stem of a plant while stock is the stem attached to the ground


What is difference between anti integration and derivative?

In all but very exceptional cases there is no difference.


What is the difference between the australian stock exchange and the american stock exchange?

The difference between that Australian stock exchange and the American stock exchange is that they are based out of two different countries: Australia and America.


What is the difference between dealer and stock markets?

differance between stock market and dealer market?


What's the difference between the 1938 Stock and the 1959 1962 Stock?

The difference between the 1938, 1959 and 1952 is that it has been progressively modernized.