underlying JUST WRITTEN FOR YOU
/ˌʌndəˈlaɪɪŋ/ · un.der.ly.ing
verb
- To lie in a position directly beneath. The pipe underlies the foundation of the building.
- To lie under or beneath. A stratum of clay underlies the surface gravel.
- To serve as a basis of; form the foundation of. A doctrine underlying a theory provides its core principles.
noun
- The entity from whose performance a derivative derives its value. The underlying asset of the stock option is the company's stock.
adjective
- Lying underneath. We dug down to the underlying rock.
- Basic or fundamental. Points and straight lines are underlying elements of geometry.
- Implicit. Many nursery rhymes have an underlying meaning.
Synonyms
Antonyms
Did you know? The word 'underlying' is often used in finance to describe the asset or entity that a derivative is based on, such as a stock or commodity.