An equity derivative is a trading instrument which is based on the price movements of an underlying asset's equity.

A derivative is a financial contract whose value is "derived" from another security, such as a stock, bond, commodity, currency or a market index.

A credit derivative is a financial asset in the form of a privately held bilateral contract between parties in a creditor/debtor relationship.

What are derivatives (and why are they called that)? A derivative is a contract that derives its value and risk from a particular security (like a stock or commodity)—hence the name derivative.

NORWALK, Conn. (CBS.MW) -- The nation's independent accounting standards overseer on Wednesday said it would propose a change in the definition of a derivative.