Derivative

A derivative is something that is based on another source. It can refer to a financial instrument whose value is derived from an underlying asset, a word formed from another word, or an artistic creation inspired by a pre-existing work. Essentially, a derivative is not original but draws influence or value from something else. It can be considered an offshoot, product or copy of an original.

Derivative meaning with examples

• The financial analyst explained that the complex derivative contracts, linked to mortgage-backed securities, contributed significantly to the 2008 financial crisis due to their inherent risk.
• The author's sequel, while enjoyable, was considered a derivative of the original novel, lacking the innovative narrative and thematic depth of the earlier work, focusing on rehashing themes.
• Using a mathematical function, the calculation of the derivative describes the rate of change of a function at any given point; it's central to understanding the slope and behavior.
• Many believe that this latest pop song is derivative, sounding remarkably similar to a classic tune from the 1980s, displaying little artistic innovation and borrowing heavily.
• In linguistics, a derivative is a word formed from another word, such as 'unhappy' from 'happy' by adding the prefix 'un-', altering its meaning, or 'happiness' from 'happy'.