Daily Almanac for
Feb 10, 2010
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de•riv•a•tive



Pronunciation: (di-riv'u-tiv), [key]
—adj.
1. derived.
2. not original; secondary.

—n.
1. something derived.
2. Also called derived form. Gram.a form that has undergone derivation from another, as atomic from atom.
3. Chem.a substance or compound obtained from, or regarded as derived from, another substance or compound.
4. Also called differential quotient; esp. Brit., differential coefficient. Math.the limit of the ratio of the increment of a function to the increment of a variable in it, as the latter tends to 0; the instantaneous change of one quantity with respect to another, as velocity, which is the instantaneous change of distance with respect to time. Cf. first derivative, second derivative.
5. a financial contract whose value derives from the value of underlying stocks, bonds, currencies, commodities, etc.

Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.

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