# underlying

Pronunciation: US say "un-dur-LY-ing" /ˌʌn.dɚˈlaɪ.ɪŋ/; say "un-duh-LY-ing" UK /ˌʌn.dəˈlaɪ.ɪŋ/, AUS /ˌan.dəˈlɑɪ.ɪŋ/

## Adjective

1. Forming the basic or fundamental nature of something, often beneath what can be directly seen.
   - Simple: Being the most basic or important part of something, even when it is hidden.
   - _Economists examined the underlying trends behind the sudden jump in prices._
   - _The report finally exposed the underlying weakness in the bank's accounting._
2. Present in or suggested by something without being openly expressed.
   - Simple: Present in something but not said out loud, only suggested.
   - _An underlying assumption ran through her entire argument unspoken._
   - _The committee sensed an underlying disagreement that no one chose to voice._
3. Situated directly beneath or below something else.
   - Simple: Lying or placed under something else.
   - _Geologists mapped the underlying bedrock before construction began._
   - _Beneath the worn carpet sat an underlying floor of old wooden boards._

## Verb

4. Present participle of underlie. — present participle and gerund of underlie
   - Simple: The -ing form of underlie. Use it to name the action, or after a noun to describe it.
   - _The assumptions underlying the theory have come under fresh scrutiny._
   - _Investigators looked for the causes underlying the sudden drop in sales._

## Noun

5. In finance, the asset or instrument from whose performance a derivative contract draws its value.
   - Simple: In finance, the asset that a contract is based on, whose price decides what the contract is worth.
   - _The option's value rose sharply as the underlying climbed during the morning session._
   - _Each futures contract settles based on the price of its underlying at expiry._

## Origin

Formed from the verb "underlie" combined with the suffix "-ing".

Source: DictionaryAI, https://dictionaryai.com/define/underlying (written from Wiktionary data, CC BY-SA 4.0: https://creativecommons.org/licenses/by-sa/4.0/).