Search the dictionary of legal abbreviations and acronyms for acronyms and/or abbreviations that contain derivatives. In the context of the acquisition, a derivative acquisition is an acquisition that is derived from or acquired from another. A derivative acquisition differs from an original acquisition in that one acquisition was never owned by another at the time of the initial purchase. In terms of acquisition, a derivative acquisition is different from an original acquisition. A derivative acquisition is an acquisition acquired or derived from another person; whereas in an original acquisition, one acquisition has never been owned by another. A derivative is a financial instrument whose value depends on the market value of an underlying asset. The parties to a derivative contract essentially bet on the value of the underlying. Depending on how the value of the underlying asset changes, one party usually owes something valuable to the other. Derivatives can be used to hedge against market fluctuations. Britannica.com: Encyclopedia articles on derivatives The term “derivative” refers to something that comes from or refers to another. In copyright terms, derivative means any work adapted or developed from an earlier work.
This definition of derivative is based on The Cyclopedic Law Dictionary. This entry needs to be proofread. Coming from another; of something previous, secondary; as a derivative security acquired by another person. There are significant differences between an original title and a spin-off title. If the acquisition is original, the right to the thing thus acquired becomes property, which must be unlimited and unlimited, and since no one but the occupant has any right to the thing, he must have every right to dispose of it. However, with regard to the acquisition of derivatives, the situation may be otherwise, since the person from whom the thing is acquired may not have unlimited rights over it, or he may transfer or transfer it with certain legal reservations. Derivative securities must always be contractually agreed. 2. Derivative transfers are those which presuppose another previous transfer and serve only to increase, confirm, modify, limit, restore or transfer the interest granted by such an initial transfer, 3 Bl. Com.
321. [Last updated August 2022 by Wex Definitions team] You might be interested in the historical significance of this term. Search or search for derivatives in historical law in the Encyclopedia of Law. Note: Derivatives often take the form of tailor-made contracts that are settled outside of stock exchanges, while other contracts, such as standard index options and futures, are traded openly on these exchanges. Derivatives are often futures. Search or search for derivatives in the American Encyclopedia of Law, Asian Encyclopedia of Law, European Encyclopedia of Law, UK Encyclopedia of Law, or Latin American and Spanish Encyclopedia of Law. Source: Merriam-Webster`s Dictionary of Law ©, 1996. Licensed with Merriam-Webster, Incorporated.
Legal Definition and Related Resources of Derivatives n. a lawsuit brought by a shareholder of the Company against the directors, management and/or other shareholders of the Company for management failure. In fact, the applicant shareholder purports to act on behalf of the corporation because the directors and management do not exercise their authority for the benefit of the corporation and all its shareholders. This type of lawsuit often arises when there is fraud, mismanagement, self-negotiation and/or dishonesty that is ignored by a company`s executives and board of directors. A derivative also refers to a financial instrument whose value is derived from the performance of a secondary source such as an underlying currency or asset.
