Underlying Meaning Stocks. In cases involving stock options the underlying asset is the stock itself. An underlying asset is the security on which a derivative contract is based upon.
For example if a company has 100000 shares and you buy 1000 of them you own 1 of it. AAPL DELL MSFT etc The Expiration Dateof the contractie. Underlying stock From Longman Business Dictionaryunderlying stockunderĖlying Ėstockcountable uncountableFINANCEthe actualstockrelatedto OPTIONsthe right to buy sharesat a particular pricewithin a particular periodof time or other DERIVATIVEssuch as FUTUREsPut options gain in price when the underlying stocks decline in valuestock.
An analyst may believe that a stock is underpriced on the basis of the value of the firms underlying assets and the potential earning power of those assets.
Your browser doesnt support HTML5 audio. Underlying profit refers to the measure of the actual profit recognised by a company used for planning business processes. In cases involving stock options the underlying asset is the stock itself. Definition of underlying stock from the Cambridge Business English Dictionary.
