The Best Definition of Derivative Securities Is

question 62

Multiple Choice

The best definition of derivative securities is:

• A) An insurance policy that ensures underlying assets are secured.
• B) Investment products whose value derives from the price of another, underlying, asset.
• C) Financial markets where long-term debt and equity securities are bought and sold.
• D) Creation of new securities or financial processes.
• E) A compensation package for managers that ties their salary to the firm's share price.

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Definitions:

Liberalization

The process of eliminating restrictions and barriers to free trade or other economic activities, often to encourage economic development.