Answer to Question #238907 in Finance for Carson

Question #238907

Distinguish between primitive securities and financial derivatives


1
Expert's answer
2021-09-21T11:26:56-0400

Primitive securities are kind of investment vehicle for which dividends or other payments depend on state of issuer monetary affairs. Example of primitive security is unsecured bond.


On other hand financial derivatives are financial instruments the price of which is determined by the value of another asset.

Example of Financial derivatives can be warrants.


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