A derivative dismantles an asset into tradeable attributes without trading the asset itself

Evidence

Before delving into this lyrical speculation data, it’s worth pausing to review some financial terminology. As discussed in chapter 2, a security is a basic financial instrument that holds a type of monetary value. The three essential forms are the equity security, such as a stock or share (a fractional ownership position in a corporation); the debt security, such as a bond or mortgage (a creditor relationship to a government or corporation); and the derivative, a financial instrument that dismantles any asset into individual attributes and trades them without trading the asset itself (contracts such as futures, forwards, options, swaps, and shorts). Securitization refers to the process by which a financial instrument is created by pooling together multiple types of debt into one security that can then be traded. — Andrew deWaard, Derivative Media, 335

Categorization

• DEFINE: Clear working definitions distinguishing equity, debt, and derivative securities plus securitization, which the rest of the book’s argument runs on.
• XREF: connects to: Standardized futures contracts let traders exit obligations without the original counterparty — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 74