Derivative

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DERIVATIVE. Coming from another; taken from something preceding, secondary; as derivative title, which is that acquired from another person. There is considerable difference between an original and a derivative title. When the acquisition is original, the right thus acquired to the thing becomes property, which must be unqualified and unlimited, and since no one but the occupant has any right to the thing, he must have the whole right of disposing of it. But with regard to derivative acquisition, it may be otherwise, for the person from whom the thing is acquired may not have an unlimited right to it, or he may convey or transfer it with certain reservations of right. Derivative title must always be by contract.
     2. Derivative conveyances are, those which presuppose some other precedent conveyance, and serve only to enlarge, confirm, alter, restrain, restore, or transfer the interest granted by such original conveyance, 3 Bl. Com. 321.

References in periodicals archive ?
To investigate the motivations insiders have to use a particular derivative security, we begin by discussing how the different characteristics of these securities may affect the choice of instrument.
The indemnity payoff function of each of these policies resembles the payoff function of a specific derivative security and, hence, can be priced by applying the option-pricing framework.
The valuation equations derivation of a Differential equation for a derivative security on a spot asset in the presence of a continuous dividend yield and information costs
Since a financial market can only be as informationally efficient as the actual information it gets to process, if the information about the true price of the derivative security is misconstrued (perhaps due to an inadequate pricing model), the market cannot be expected to reconcile it just because it is operating at a certain level of informational efficiency.
Let W(t) = price of a derivative security at time t.
A typical SCIFINANCE application is modeling a derivative security. The model is specified in mathematical and numeric terms familiar to a financial analyst.
Next the discussion becomes a bit more sophisticated as Bogle starts discussing the nature of 'derivatives' and how the stock market is "just one other derivative security".
Scott, 1992, "The Information-Content of Prices in Derivative Security Markets", International Monetary Fund Sta.
In deprivation appraisals, the term is broadly defined to include things such as tangible personal property, intangible assets and intellectual properties, business entities and interests and direct and derivative security interests.