Derivative (衍生品)

Derivative (衍生品 yǎnshēng pǐn) is a kind of financial instrument, which is generally expressed as an agreement between two entities, and its price is determined by the price of other underlying securities. 

  • (yǎn) as in evolution (衍变 yǎnbiàn). The underlying radical is (shui) which means (shuǐ) water – important to our lives and human reproduction.
  • (shēng) as in born (出生 chūshēng), life (人生 rénshēng) or producing (生产 shēng chǎn).
  • (pǐn) as in quality (品质 pǐnzhì), taste (品味 pǐnwèi) or gift (礼品 lǐpǐn).

Derivative (衍生品 yǎnshēng pǐn) word examples:

  1. Financial derivative (金融衍生品 jīnróng yǎnshēng pǐn).


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