• (FINANCE) a stock whose price movements determine the value of a [financial derivative]. For example, when a hedge fund manager writes a [call option] for Citigroup ([NYSE]:C) at 4.25/share, C is the underlying stock.
    Underlying can be used to refer to other things besides stocks; for example, commodities, currencies, or bonds.


    Underlying stock meaning & definition 1 of Underlying stock.


  • Underlying stock meaning & definition 2 of Underlying stock.

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