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Delisting
See AlsoWhat is Derivative Trading - Meaning, Types, and BenefitsApplications of Derivatives - Definition, Applications, Properties, ExamplesDerivatives 101: A Beginner'as GuideWhat is Derivatives: Meaning, Benefits and TypesDelisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
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Definition: A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps.
Description: It is a financial instrument which derives its value/price from the underlying assets. Originally, underlying corpus is first created which can consist of one security or a combination of different securities. The value of the underlying asset is bound to change as the value of the underlying assets keep changing continuously.
Generally stocks, bonds, currency, commodities and interest rates form the underlying asset.
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Delisting
Delisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
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Dividend
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Related Definitions
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- India's interest rate derivatives to get boost as top insurer LIC enters marketInvestment in a type of bond derivative called forward rate agreements could likely rise in India as the interest rate cycle turns and the country's largest insurer enters the market, traders said.
- View: Sebi's measures to curtail speculative trading in the index derivatives segmentLate last month, Sebi proposed measures to address the rise in speculative trading in index derivatives, driven by a surge in individual investor activity. Concerns have been raised about the exponential increase in futures and options (F&O) trading volumes, which are now 400 times those in the cash market in India, compared to 5-15 times in most other markets.
- When temptation turns into conIndia's consumer economy is experiencing rapid growth thanks to the instant gratification trend. This is evident in various sectors such as instant loans, quick commerce, fast money through derivatives trading, and online games with immediate rewards. Even home delivery services, including liquor in some states, contribute to this fast-paced business model.
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