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2007-02-08 21:39:57 · 2 answers · asked by kaznmolly 1 in Politics & Government Law & Ethics

2 answers

Hey Kaznmolly,

The term derivative is a loan from the world of finances. It refers to an investment that derives its value from another more fundamental investment, as a commitment to buy a bond for a certain sum on a certain date.

In the context of law, people talk of shareholder's derivative suits. Thus, the term derivative lawyer.

A derivative suit is "an action brought by a shareholder not on its own behalf, but on behalf of the corporation. The shareholder brings an action in the name of the corporation against the parties allegedly causing harm to the corporation; such actions are often brought against directors or officers of the corporation itself when their conduct is in violation of a fiduciary duty owed to the shareholders, vis-a-vis the corporation. Any proceeds of the action go to the corporation."

Hope this helps!

2007-02-09 02:43:41 · answer #1 · answered by اري 7 · 0 0

Derivatives lawyers are lawyers who deal in high finance. They have an in-depth knowledge of regulatory matters and advise on over-the-counter and exchange-traded derivative transactions and carry out litigation involving them. Their skills extend to structuring, documentation and negotiation of derivative products, along with advising their clients about legal and regulatory risk. Sometimes a derivatives lawyer will be involved in the drawing up of statutory and legislative frameworks where new ground is being broken and with clearing and settlement structures in new and emerging markets. It is highly specialised and all too clever for most of us!

2007-02-09 06:57:23 · answer #2 · answered by Doethineb 7 · 0 0

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