Derivatives are sometimes called 'secondary' financial instruments.

Name: Derivatives are sometimes called 'secondary' financial instruments.
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Question

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Derivatives are often referred to as 'secondary' financial instruments because they derive their value from an underlying asset, such as a commodity or a stock.  This means that their value is dependent on the value of the underlying asset, making them secondary to the primary asset.

Derivatives Are Sometimes Called 'Secondary' Financial Instruments