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Topic: Derivative (finance)


In the News (Wed 22 May 19)

  
  Derivative - Wikistock
A derivative is a generic term for specific types of investments from which payoffs over time are derived from the performance of assets (such as commodities, shares or bonds), interest rates, exchange rates, or indices (such as a stock market index, consumer price index (CPI) or an index of weather conditions).
Other uses of derivatives are to gain an economic exposure to an underlying security in situations where direct ownership of the underlying is too costly or is prohibited by legal or regulatory restrictions, or to create a synthetic short position.
One should keep in mind that one purpose of derivatives is as a form of insurance, to move risk from someone who cannot afford a major loss to someone who could absorb the loss, or is able to hedge against the risk by buying some other derivative.
www.wikistock.com /wiki/Derivative_(finance)   (2399 words)

  
  Derivative (finance) - Wikipedia, the free encyclopedia
A derivative is a generic term for specific types of investments from which payoffs over time are derived from the performance of assets (such as commodities, shares or bonds), interest rates, exchange rates, or indices (such as a stock market index, consumer price index (CPI) or an index of weather conditions).
Other uses of derivatives are to gain an economic exposure to an underlying security in situations where direct ownership of the underlying is too costly or is prohibited by legal or regulatory restrictions, or to create a synthetic short position.
One should keep in mind that one purpose of derivatives is as a form of insurance, to move risk from someone who cannot afford a major loss to someone who could absorb the loss, or is able to hedge against the risk by buying some other derivative.
en.wikipedia.org /wiki/Derivative_security   (2259 words)

  
 Derivative
The derivative of a function at a certain point is a measure of the rate at which that function is changing as an argument undergoes change.
Derivatives are defined by taking the limit of the slope of secant lines as they approach a tangent line.
Perhaps the most natural situation is that of functions between differentiable manifold s; the derivative at a certain point then becomes a linear transformation between the corresponding tangent space s and the derivative function becomes a map between the tangent bundle s.
www.nebulasearch.com /encyclopedia/article/Derivative.html   (1924 words)

  
 Financial economics - Wikipedia, the free encyclopedia
In recent decades, a lot of work has concerned itself with the prices of derivatives, financial instruments that derive their value from other, underlying, assets.
Stock options are a classic form of derivative -- Fischer Black, Myron S. Scholes, and Robert C. Merton did ground-breaking work in the early 1970s on the determination of stock option prices on the basis of the underlying stock's price and volatility.
The top 3 finance journals are Journal of Finance, Review of Financial Studies and the Journal of Financial Economics.
en.wikipedia.org /wiki/Financial_economics   (482 words)

  
 Finance Encyclopedia @ NaturalResearch.org (Natural Research)   (Site not responding. Last check: )
As a verb, "to finance" is to provide funds for business.
Equity financing mixed with the sale of bonds (or any other debt financing) is called the company's capital structure.
In the case of a company, managerial finance or corporate finance is the task of providing the funds for the corporations' activities.
www.naturalresearch.org /encyclopedia/Finance   (936 words)

  
 Department of Finance - Georgia State University
This course introduces students to derivative instruments, which are contracts whose values derive from prices of underlying assets and goods such as equities, currencies, debt, and commodities.
This course is a prerequisite for all other finance electives except Fi 8020 and Fi 8040 and may be taken after or simultaneously with MBA 8622.
Coverage is drawn from cutting-edge issues such as the capital acquisition process, investment banking, venture capital financing, the financial management of the e-commerce firm, corporate control, international capital budgeting and financing, project finance, corporate reorganizations and restructuring, corporate governance, and the interaction of product-market strategies and financial strategies.
robinson.gsu.edu /finance/COURSES.HTM   (2285 words)

  
 Public Finance, May 24, 2004; Volume 4, Issue 1 from Holland & Knight LLP   (Site not responding. Last check: )
A “derivative” or “derivative product” is a financial instrument for the purchase or sale of, or whose value depends upon or is derived from, one or more assets, indices or other agreed upon quantitative measures.
Derivatives are no longer confined to the global 500 companies, however, and they are now an integral part of the larger world of governmental and corporate finance.
GFOA further advises that derivatives should only be employed when the user has (i) sufficient understanding of the product it is entering into, (ii) the staffing and expertise to evaluate and manage the product, and (iii) a comprehensive derivative policy.
www.hklaw.com /Publications/Newsletters.asp?IssueID=460   (3017 words)

  
 Derivative   (Site not responding. Last check: )
Qrhetoric Calculus Covers the basic derivative functions such as the derivative of polynomials.
Derivative Duo, The A pair of demented divas performing parodies based on classical opera.
Function Definitions in APL Example that the derivative of the integral returns the original function.
www.serebella.com /encyclopedia/article-Derivative.html   (2282 words)

  
 Printing Service,Printing Publishing Services
Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government.
In finance, a derivative is a financial instrument derived from some other asset; rather than trade or exchange of the asset itself, market participants enter into an agreement to exchange money, assets or some other value at some future date based on the underlying asset.
The exact terms of the derivative depend on, but may or may not exactly correspond to, the behavior or performance of the underlying asset.
www.bykotamarketing.com /finance.php   (442 words)

  
 Mathematical finance and financial engineering
It is sometimes referred to as "computational finance", emphasizing the need for specific numeric results and the use of computers to provide them; as such it relies on econometrics, the measurement and statistical analysis of economic quantities.
Finance Essentials from Wolfram Research provides a foundation of objects (such as cash flow, option, bond, and interest rates) and functions (such as spot-forward rate conversions, option valuation, and sensitivity measures) for building proprietary financial applications.
Derivatives Expert III is an integrated suite of Mathematica functions for doing complex financial analysis and engineering with respect to most exchange and OTC traded securities and derivatives.
www.outbacksoftware.com /finEngineer/financialEngineering.html   (1249 words)

  
 Guide to Majors at Virginia Tech: Finance
Finance is a speciality that deals with the allocation of resources on the corporate, institutional and personal levels.
Money is the life blood of the economic system and the flow of money through corporations, capital markets, and financial institutions are integral to how that life blood gets pumped through the system, how it nourishes the health of the system, and how the economy sustains and perpetuates the standard of living that we enjoy.
For example, the use of derivative securities by a corporation to hedge their foriegn exchange and product price risks might involve a bank dealer of derivatives and the need for corporate treasurer to value the derivative security as well as assess its appropriate use by the corporation.
www.career.vt.edu /guide/business/finance.html   (628 words)

  
 derivative - definition of derivative from YourDictionary.com
derived from, caused, evolved, not original, imitative, borrowed, copied, plagiarized, unoriginal, rehashed, warmed-over, secondhand, not fundamental, hereditary, inferential, inferred, coming from, obtained from, transmitted, acquired, derivational;
f: These derivatives of the derivative are called the second derivative of f.
embed: Such embedded derivatives are brought within the derivative contracts rules.
www.yourdictionary.com /derivative   (489 words)

  
 Derivatives Mathematics: Pricing and Hedging of Derivative Securities
The book is an introduction to the theory of pricing and hedging of derivative securities in continuous time for graduate and advanced undergraduate students and for researchers in both academia and the financial industry.
If the math courses are not designed with a view to mathematical finance, then all but the most talented and motivated finance students will lose their motivation and their bearings.
This book offers finance instructors the opportunity to teach and learn the necessary mathematics in a way that is intimately related to the derivative securities applications.
www.derivativesmath.com /index.html   (1465 words)

  
 An introduction to municipal derivative products. | Banking, Finance and Accounting Industries
Derivatives may be useful to government finance officials in managing debt and reducing total interest payments.
Derivative products are financial instruments whose own value is "derived" from or based upon the value of other assets or on the level of an interest rate index.
The values of interest rate swaps, caps, floors and collars are a function of and derived from present and expected future levels of interest rate indexes when compared with a contractual fixed interest rate.
www.allbusiness.com /periodicals/article/376461-1.html   (665 words)

  
 FASB asks for more derivative disclosures. | Banking, Finance and Accounting Industries   (Site not responding. Last check: )
For derivatives held for trading purposes, it requires disclosure of the average fair value balance of positions during the reporting period and the net gains or losses that resulted from trading activities.
Identification of the derivatives from which the gains or losses arose and where those amounts are reported in the income statement also is required.
Among other provisions, for derivatives held or issued for purposes other than trading, the FASB revised paragraph 11 of the April 1994 exposure draft of Statement no. 119 so that some of the required disclosures need not be by class of financial instrument.
www.allbusiness.com /periodicals/article/458928-1.html   (662 words)

  
 Wagner Math Finance Derivative Valuation Page
Derivatives are growing more complex every day to meet the needs of all of these participants.
Math Finance took a large leap forward with the discovery of the Black-Scholes formula for the valuation of European-style equity options.
The software accepts a description of the terms of the derivative contract, constructs a forward rate curve from the published prices of fixed rate instruments, estimates volatility parameters from market prices, and values the options contracts using arbitrage pricing theory.
www.mathfinance.wagner.com /CONSULTING/DERIVATIVE_VALUATION   (223 words)

  
 SSRN-Derivative Lawsuits as a Corporate Governance Mechanism: Empirical Evidence on Board Changes Surrounding Filings ...
We also find that the incidence of derivative suits is higher for firms with a greater likelihood of managerial agency problems.
Most importantly, we find that derivative suits are associated with significant improvements in the boards of directors, which have been recognized as a critical aspect of corporate governance.
We find that firms, whose managers lose derivative lawsuits, have smaller boards, a higher percentage of outside directors on their boards, and a greater departure rate among board directors in the periods following the filings of lawsuits.
papers.ssrn.com /sol3/papers.cfm?abstract_id=495583   (425 words)

  
 Ungaretti & Harris LLP | Derivative Products/Swaps
Derivatives are among the most complex financial instruments, and in the public finance arena include various methods of repackaging fixed rate municipal bonds into tax-exempt variable rate instruments.
Pooling is one of the most innovative tax-exempt financing techniques available, and we regularly act as tax counsel in bond transactions that pool the financings of municipalities, healthcare providers, and other 501(c)(3) exempt organizations.
Derivatives, swaps and pooling transactions are sophisticated strategies that require experienced guidance and a commitment to help all parties achieve their financial objectives.
www.uhlaw.com /derivative_products_swaps   (739 words)

  
 Finance Hound - Basics of Online Commodity Derivative Trading - Part 1
Commodity Derivative exchange is an organized market of group of people or firms who are members of the exchange and act as brokers and governed by a regulatory authority and thus form a platform for different kind of participants to trade in commodity derivatives.
The structure of derivative commodity exchange is much similar to that of a stock exchange and forex exchange.
Online Commodity derivative Trading is just like online trading of futures and options of equity trading in stock markets and follow law of contracts by means of standardized terms and conditions.
financehound.com /index.php/2005/11/30/basics_of_online_commodity_derivative_tr_1   (564 words)

  
 Everything you always wanted to know about Derivative security
In finance, a derivative security or derivative is a contract which specifies the right or obligation between two parties to receive or deliver future cash flows (or exchange of other securities or assets) based on some future event.
Another way of defining a derivative is that it is a security whose value is determined (derived) from one or more other securities, commodities, or events.
The value is influenced by the features of the derivative contract, including the timing of the contract fulfillment, the value of the underlying security or commodity, and other factors like volatility.
www.relan.net /Finance_topics/Option.html   (605 words)

  
 Good Morning, Volatility - Financial Accounting Standard Board, derivative regulation - Statistical Data Included CFO: ...   (Site not responding. Last check: )
On June 16, the long-awaited and much-debated new rules on accounting for derivative transactions became part of generally accepted accounting principles in the United States.
Financial Accounting Standard (FAS) 133 is the first standard issued concerning derivatives since 1984--a 16-year interval during which the use of derivative instruments by U.S. corporations has exploded.
"Derivative is still a four-letter word," says Jonathan Boyles, director of financial standards at Washington, D.C.-based Fannie Mae, which held $240 billion worth of interest-rate swaps at the end of last year.
www.findarticles.com /p/articles/mi_m3870/is_8_16/ai_63091475   (434 words)

  
 Morgan Lewis : Practices > Finance - Legal, Law Firm, Lawyer, Attorney
We represent some of the world’s leading financial institutions, as well as corporate clients of the firm, in connection with financings ranging from conventional bank financings to highly structured financial transactions, both syndicated and unsyndicated, secured and unsecured.
We are recognized leaders in financing for specialty areas as diverse as entertainment, energy generation capacity, shipping, real estate investment trusts, broker/dealer entities and royalty streams.
We are equally at home handling a simple working capital revolver or the financing for a multi-billion dollar hostile takeover or private equity acquisition financing.
www.morganlewis.com /index.cfm/nodeID/2ee42491-18c3-4a53-9202-b6a7eb113709/practiceAreaID/550C68D4-D180-41B4-A6C8-037B902A9B59/fuseaction/practiceArea.detail   (707 words)

  
 Finance   (Site not responding. Last check: )
FIN 405 Derivative Securities (3,0,3) Definition and explanation of various risk transfer devices such as options involved in trading these securities, hedging and speculating with options and futures, supervision, regulation, and tax consequences of futures and options trading.
FIN 640 Derivative Securities (3,0,3) Study, analysis, and valuation of various forms of derivatives markets; use of derivatives and strategies for hedging risk or for speculation.
FIN 660 International Finance (3,0,3) Financial decision-making and analysis in a multinational environment; currency valuation and exchange rates; effects of expectations and economic variables such as interest rates and inflation on exchange rates; types of risks and use of derivatives to hedge international exposure.
www.nku.edu /~fin/fin-course.htm   (909 words)

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