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Definition of

underlying security

Stockholding & Investments

security with option a security that is associated with an option

Recommended Further Reading (Term count)
  • Default Position
    by Aaron Brown
    This article was first published in Quantum magazine.Few CEOs or heads of government demonstrate wisdom and courage when investors start buying naked credit default swap (CDS) protection against their company’s or country’s default. They are likely to complain that it is “like buying fire insurance on a neighbor’s house.”Actually it’s not like buying insurance, which is bought on physical assets. Hedging is done against the mismanagement of...

Definitions of ’underlying security’ and meaning of ’underlying security’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’underlying security’ and other financial terms with our online QFINANCE Financial Dictionary.

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