What does underlying mean?

Definitions for underlying
ˈʌn dərˌlaɪ ɪŋun·der·ly·ing

This dictionary definitions page includes all the possible meanings, example usage and translations of the word underlying.

Princeton's WordNet

  1. implicit in(p), inherent, underlyingadjective

    in the nature of something though not readily apparent

    "shortcomings inherent in our approach"; "an underlying meaning"

  2. underlyingadjective

    located beneath or below

  3. fundamental, rudimentary, underlyingadjective

    being or involving basic facts or principles

    "the fundamental laws of the universe"; "a fundamental incomatibility between them"; "these rudimentary truths"; "underlying principles"


  1. underlyingadjective

    lying underneath

    We dug down to the underlying rock.

  2. underlyingadjective

    basic or fundamental

    Points and straight lines are underlying elements of geometry.

  3. underlyingadjective


    Many nursery rhymes have an underlying meaning.


  1. Underlying

    In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets.Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. In the United States, after the financial crisis of 2007–2009, there has been increased pressure to move derivatives to trade on exchanges. Derivatives are one of the three main categories of financial instruments, the other two being equity (i.e., stocks or shares) and debt (i.e., bonds and mortgages). The oldest example of a derivative in history, attested to by Aristotle, is thought to be a contract transaction of olives, entered into by ancient Greek philosopher Thales, who made a profit in the exchange. However, Aristotle did not define this arrangement as a derivative but as a monopoly. (see Aristotle's Politics, Book I, Chapter XI). Bucket shops, outlawed in 1936, are a more recent historical example.


  1. underlying

    Underlying refers to something fundamental, basic, or foundational that is present or existing, often hidden or unseen, but serves as a basis or root cause for something visible or noticeable. It typically refers to the subtle conditions or realities that influence or cause a situation, behavior, problem, or phenomenon.

Webster Dictionary

  1. Underlyingadjective

    lying under or beneath; hence, fundamental; as, the underlying strata of a locality; underlying principles


  1. Underlying

    In finance, the underlying of a derivative is an asset, basket of assets, index, or even another derivative, such that the cash flows of the derivative depend on the value of this underlying. There must be an independent way to observe this value to avoid conflicts of interest. According to the Financial Accounting Standards Board's FASB Statement of Financial Accounting Standards No. 133 - Accounting for Derivative Instruments and Hedging Activities, an underlying is a specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates, or other variable. An underlying may be a price or rate of an asset or liability but is not the asset or liability itself.

British National Corpus

  1. Spoken Corpus Frequency

    Rank popularity for the word 'underlying' in Spoken Corpus Frequency: #4130

  2. Adjectives Frequency

    Rank popularity for the word 'underlying' in Adjectives Frequency: #563

How to pronounce underlying?

How to say underlying in sign language?


  1. Chaldean Numerology

    The numerical value of underlying in Chaldean Numerology is: 8

  2. Pythagorean Numerology

    The numerical value of underlying in Pythagorean Numerology is: 3

Examples of underlying in a Sentence

  1. Josh Chernoff:

    Oftentimes, the companies themselves aren't growing, so it doesn't solve the underlying challenge, if you tie two rocks together, they sink just as fast or faster.

  2. Tim Ghriskey:

    This type of report shows underlying economic strength, and it gives corporate management confidence in the strength of the economy, primarily because of (trade negotiations), there's been a lot of uncertainty with management.

  3. Jordan Peele:

    HARRISON FORD SERVED AS UNDERCOVER ADVISER FOR ‘ SOLO : ‘ A STAR WARS STORY ’ Jordan Peele spoke about the underlying themes of the movie which included slavery. I realized what this movie was about. I realized that slavery was not something of the past. The' sunken place' to me, shouted to me, that in today’s time, in modern time, we have black men and women abducted and put in dark holes. We have our freedoms taken away … I realized at that point that there were people being locked up and taken out of the world and taken from their families for holding less weed than I was smoking while I was writing this movie.

  4. Alvin Bragg:

    As a Black man, I have personally experienced racial profiling countless times in my life and I sympathize with the young man victimized in this incident, this plea ensures appropriate accountability for Miya Ponsetto by addressing underlying causes for Miya Ponsetto behavior and ensuring this conduct does not reoccur.

  5. Alan Higgins:

    Markets have gone sharply against us so far this year, but the actual underlying economic fundamentals continue to support our positive view for 2016.

Popularity rank by frequency of use


Translations for underlying

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"underlying." Definitions.net. STANDS4 LLC, 2024. Web. 23 May 2024. <https://www.definitions.net/definition/underlying>.

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