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Underlying Asset at Investment Glossary

What is it? The security or property or loan agreement that an option gives the option holder the right to buy or to sell.

Investing Definition & Term Added By: Aubrey

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Other Similar Investment Terms:

Investing Term Position Limit is The maximum number of option contracts on the same side of the market which can be held by any one investor or group of related investors.

Investing Term Agency problem is Conflicts of interest among stockholders, bondholders, and managers.

Investing Term Security deposit (initial) is Synonymous with the term margin. A cash amount that must be deposited with the broker for each contract as a guarantee of fulfillment of the futures contract. It is not considered as part payment or purchase. Related Margin.

Investing Term Mortgagee is The lender of a loan secured by property.

Investing Term Progressive tax system is A tax system wherein the average tax rate increases for some increases in income but never decreases with an increase in income.