(FINANCE) a financial derivative whose underlying asset is a stock. The simplest kinds include the equity swap and the option.
As opposed to currency derivatives, interest rate derivatives, commodity derivatives, and so on. An equity swap typically involves an "equity side" of the transaction AND something else, like interest rates or oil prices.
Equity derivatives can be written on indices (e.g., the S&P 500, the FTSE-100, NASDAQ) as well as on stocks. In fact, they are often bought "out of the money" by mutual fund managers as insurance against a catastrophic decline in the fund value.
As opposed to currency derivatives, interest rate derivatives, commodity derivatives, and so on. An equity swap typically involves an "equity side" of the transaction AND something else, like interest rates or oil prices.
Equity derivatives can be written on indices (e.g., the S&P 500, the FTSE-100, NASDAQ) as well as on stocks. In fact, they are often bought "out of the money" by mutual fund managers as insurance against a catastrophic decline in the fund value.
One other reason that poison pills are back in favor is the growth of synthetic equity derivative swap transactions, where a “short party” agrees to pay a “long party” the cash flows from a particular amount of a target company’s stock. In exchange, the long party agrees to pay a fee and to cover any decrease in the market value of the stock ... Through such transactions, a long party can suddenly become a significant stockholder of a target company without warning.
--Dykema Gossett & Andrew H. Connor "The poison pill resurgence," Lexology (15 March 2010)
--Dykema Gossett & Andrew H. Connor "The poison pill resurgence," Lexology (15 March 2010)
by Abu Yahya April 15, 2010
Get the equity derivative mug.Derivativism is what capitalism becomes when it runs out of capital and must rely on debt. It turns debt into low or no value wealth, largely for the economic elite.
The economy no longer made money via capitalism but thankfully the bankers were still around and could generate wealth by servicing debt in a new process called Derivativism.
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Unable to persuade is bedmate to engage in lovemaking he tried to ply out of her an agreement for a sexual derivative instead.
by yalebno February 4, 2010
Get the sexual derivative mug.an arcane paradigm of logic in which the user derives a generalization that one action will directly/automatically result in future dangerous/extreme behavior as if it were a widely accepted foregone conclusion.
Arguments based on use of depravative logic tend to be presented as though they are based on deductive reasoning (the conclusion is guaranteed).
Arguments based on use of depravative logic tend to be presented as though they are based on deductive reasoning (the conclusion is guaranteed).
example of the use of depravative logic:
If pharmacists are required to fill valid prescriptions for contraceptives, doctors will start ordering women to abort disabled children and/or refuse to treat them.
If pharmacists are required to fill valid prescriptions for contraceptives, doctors will start ordering women to abort disabled children and/or refuse to treat them.
by ol cranky May 23, 2005
Get the depravative logic mug.A response to today's stimuli based on previous events. Something that will impact decisions later in life.
The fighting he experienced early in his life created derivative behavior, that resulted in a successful MMA career.
by Dr. Ragathon October 22, 2013
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Speaks fluent Greek. Basically invented Gamma Convexity. Trades options on Zeta Markets.
Speaks fluent Greek. Basically invented Gamma Convexity. Trades options on Zeta Markets.
by derivatives-chad June 3, 2022
Get the derivatives chad mug.Abstract Definition: For any smooth and differentiable mapping f:R->R, the derivative is an operator d/dx that takes f to df/dx, defined by the limit of the difference quotient f(x+h)-f(x)/h as h approaches 0.
Geometric Definition: The slope of the tangent line at any point of the graph of a function.
Geometric Definition: The slope of the tangent line at any point of the graph of a function.
The Derivative of x^2 is 2x.
by setbender January 3, 2023
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