Delist and Derivative instrument: Difference between pages

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imported>Doug Williamson
(Create page - source - The Treasurer - 2022 Issue 4 - p21.)
 
imported>Doug Williamson
(Add classification.)
 
Line 1: Line 1:
To remove of an issue of securities from trading on a recognised stock exchange.
''Risk management - hedging''.


A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).


:<span style="color:#4B0082">'''''Warning flags'''''</span>
Derivative instruments are widely used by non-financial corporates for hedging purposes.


:"[by Q3 2022] 28 listed companies have now issued their third consecutive profit warning in the past year, compared with 18 at the end of Q2.


:On average, one-in-five companies delist within a year of their third warning, most due to insolvency."
<span style="color:#4B0082">'''Example'''</span>


:''The Treasurer - Issue 4 2022 - December 2022, p21.''
A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.
 
The value of the share option derives from the current price of the related underlying share relative to the option strike price.




== See also ==
== See also ==
* [[De-listing]]
* [[CCR]]
* [[Insolvency]]
* [[Collateral]]
* [[Listing]]
* [[Commodity risk]]
* [[Profit warning]]
* [[CP]]
* [[Q2]]
* [[Credit support annex]]
* [[Q3]]
* [[Embedded derivative]]
* [[Restructuring]]
* [[ETD]]
* [[Security]]
* [[FC]]
* [[Taking private]]
* [[Fixing instrument]]
* [[Forward rate agreement]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[Interest rate swap]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Margining]]
* [[Mark to market]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Potential Future Exposure]]
* [[Replacement cost]]
* [[Risk management]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]
 
 
===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, ''Sarah Boyce,'' The Treasurer]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 16:14, 1 September 2018

Risk management - hedging.

A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).

Derivative instruments are widely used by non-financial corporates for hedging purposes.


Example

A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.

The value of the share option derives from the current price of the related underlying share relative to the option strike price.


See also


Other links