DERIVATIVE SECURITY Clause Samples
The Derivative Security clause defines the rights and obligations related to financial instruments whose value is derived from an underlying asset, such as options, warrants, or convertible securities. This clause typically outlines the terms under which these derivative securities can be exercised, converted, or transferred, and may specify conditions like pricing, timeframes, and any restrictions on issuance or conversion. Its core practical function is to provide clear guidelines for handling derivative securities, thereby reducing uncertainty and potential disputes regarding their use and conversion in the context of the agreement.
DERIVATIVE SECURITY any option, warrant or other right to acquire, or any security convertible into or exchangeable for, one or more shares of Common Stock.
DERIVATIVE SECURITY. Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values. Designated Bond. FFCB’s regularly issued, liquid, non-callable securities that generally have a 2 or 3 year original maturity. New issues of Designated Bonds are $1 billion or larger. Re-openings of existing Designated Bond issues are generally a minimum of $100 million. Designated Bonds are offered through a syndicate of two to six dealers. Twice each month the Funding Corporation announces its intention to issue a new Designated Bond, reopen an existing issue, or to not issue or reopen a Designated Bond. Issues under the Designated Bond program constitute the same credit standing as other FFCB issues; they simply add organization and liquidity to the intermediate- and long-term Agency market.
DERIVATIVE SECURITY. Derivative is a contract between two parties. It takes more risks and high return.