What is the definition of Underlying Asset in Stock Market?

An underlying asset is a term used when talking about an asset that a derivative is based upon.  A stock option is a great example of a derivative.  Also, a derivative is a financial instrument that has a price of items that are also based on different assets. 


To learn more about options, click here -->  Option 


Be the first to comment!

You must login to comment

Related Posts

 
 
 

Loading