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underlying

/ˌʌndərˈlaɪɪŋ/  ·  say it: UN·der·LY·ing

the asset on which a derivative's value is based

In Banking & Finance

In more detail

1. (adjective) existing or present but not easily noticed or stated directly; forming the basis or foundation of something

2. (adjective) located beneath or below something else

Examples

• 1. The underlying cause of the problem was poor communication.
• 2. The underlying rock is very hard and difficult to dig through.

Nearby in Banking & Finance

short selling, sovereign debt, tranche, working capital, write-down