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derivative

/dəˈrɪvədɪv/
/dɪˈrɪvətɪv/
IPA guide

Other forms: derivatives; derivatively

Alert: shifting parts of speech! As a noun, a derivative is kind of financial agreement or deal. As an adjective, though, derivative describes something that borrows heavily from something else that came before it.

In grammar and linguistics, a word that is formed from another word is called a derivative. For example, the word courageous is a derivative of the word courage. In economics, derivatives are deals based on the outcome of other deals. A movie plot might be described as derivative if it steals from another film — say, if it lifts the tornado, the witch, and the dancing scarecrow from The Wizard of Oz.

Definitions of derivative
  1. noun
    a compound obtained from, or regarded as derived from, another compound
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    type of:
    chemical compound, compound
    (chemistry) a substance formed by chemical union of two or more elements or ingredients in definite proportion by weight
  2. noun
    the result of mathematical differentiation; the instantaneous change of one quantity relative to another; df(x)/dx
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    types:
    curvature
    the rate of change (at a point) of the angle between a curve and a tangent to the curve
    partial, partial derivative
    the derivative of a function of two or more variables with respect to a single variable while the other variables are considered to be constant
    type of:
    calculation, computation, figuring, reckoning
    problem solving that involves numbers or quantities
  3. noun
    a financial instrument whose value is based on another security
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    types:
    futures contract
    an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date
    option
    the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
    naked option
    a put or call option for which the seller or buyer has no underlying security position
    covered option
    a put or call option backed by the shares underlying the option
    call, call option
    the option to buy a given stock (or stock index or commodity future) at a given price before a given date
    put, put option
    the option to sell a given stock (or stock index or commodity future) at a given price before a given date
    straddle
    the option to buy or sell a given stock (or stock index or commodity future) at a given price before a given date; consists of an equal number of put and call options
    incentive option, incentive stock option
    an option granted to corporate executives if the company achieves certain financial goals
    stock-index futures
    a futures contract based on a stock index; a bet on the future price of the indexed group of stocks
    stock option
    the right to buy or sell a stock at a specified price within a stated period
    lock-up option
    an option to buy the crown jewels offered to a white knight in order to forestall a hostile takeover
    type of:
    instrument, legal document, legal instrument, official document
    (law) a document that states some contractual relationship or grants some right
  4. noun
    (linguistics) a word that is derived from another word
    “`electricity' is a derivative of `electric'”
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    type of:
    word
    a unit of language that native speakers can identify
  5. adjective
    resulting from or employing derivation
    “a derivative process”
    “a highly derivative prose style”
    synonyms:
    derived
    formed or developed from something else; not original
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