Equity Derivative

Business, Legal & Accounting Glossary

Definition: Equity Derivative


Equity Derivative


Full Definition of Equity Derivative


A financial instrument whose underlying value is based on a stock. Investors often use derivatives to hedge against risk, most commonly through the use of options. For example, by purchasing a put option, an investor can limit losses in the case of a decline in stock value.


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March 29, 2024 https://payrollheaven.com/define/equity-derivative/.
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Equity Derivative. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/equity-derivative/ (accessed: March 29, 2024).
American Psychological Association (APA):
Equity Derivative. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/equity-derivative/

Definition Sources


Definitions for Equity Derivative are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.