Term
|
Definition
| Any form of money in general circulation in a country |
|
|
Term
|
Definition
| Money denominated in the currency of another country. Money can also be denominated in the currency of a group of countries, such as the euro. |
|
|
Term
|
Definition
| The rate at which the market converts one currency into another |
|
|
Term
|
Definition
| The price at which a bank or financial service firm is willing to buy a specific currency |
|
|
Term
| ask (or the offer or sell) |
|
Definition
| Quote that refers to the price at which a bank or financial services firm is willing to sell that currency |
|
|
Term
|
Definition
| The difference between te bid and the ask. This is the profit made for each unit of currency bought and sold |
|
|
Term
|
Definition
| Refers to the technique of protecting against the potential losses that result from adverse charges in exchange rates |
|
|
Term
|
Definition
| The currency that is to be purchased with another currency and is noted in the denominator |
|
|
Term
|
Definition
| The currency with which another currency is to be purchased |
|
|
Term
|
Definition
| Also known as US terms, American terms are from the point of view of someone in the United States. In this approach, foreign exchange rates are expressed in terms of how many US dollars can be exchanged for one unit of another currency (the non-US currency is the base currency). |
|
|
Term
|
Definition
| Foreign exchange rates are expressed in terms of how many currency units can be exchanged for one US dollar (the US dollar is the base currency). For example, the pound-dollar quote in European terms is £0.64/US$1 (£/US$1). |
|
|
Term
|
Definition
| States the domestic currency price of one unit of foreign currency. For example, €0.78/US$1. We read this as “it takes 0.78 of a euro to buy 1 US dollar.” In a direct quote, the domestic currency is a variable amount and the foreign currency is fixed at one unit. |
|
|
Term
|
Definition
States the price of the domestic currency in foreign currency terms. For example, US$1.28/€1. We read this as “it takes 1.28 US dollars to buy 1 euro.” In an indirect quote, the foreign currency is a variable amount and the domestic currency is fixed at one unit. |
|
|
Term
|
Definition
| The exchange rate transacted at a particular moment by a buyer and seller of a currency. When we buy and sell our foreign currency at a bank or at American Express, it's quoted as the rate for the day. For currency traders, the spot can change throughout the trading day, even by tiny fractions. |
|
|
Term
|
Definition
| The exchange rate between two currencies, neither of which is the official currency in the country in which the quote is provided |
|
|
Term
|
Definition
| The rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days. 60 days, 90 days, or 180 days in the future. |
|
|
Term
|
Definition
| The currency market for transactions at forward rates |
|
|
Term
|
Definition
| A contract that requires the exchange of an agreed-on amount of a currency on an agreed-on date and a specific exchange rate. |
|
|
Term
|
Definition
| Financil instruments whose underlying value comes from (derives from) other financial instruments or commodities |
|
|
Term
|
Definition
| A simultaneous buy and sell of a currency for two different dates |
|
|
Term
|
Definition
| The option or the right, but not the obligation, to exchange a specific amount of currency on a specific future date and at a specific agreed-on rate. Because a currency option is a right but not a requirement, the parties in an option do not have to actually exchange the currencies if they choose not to. |
|
|
Term
| Currency futures contracts |
|
Definition
| Contracts that require the exchange of a specific amount of currency at a specific future date and at a specific exchange rate. |
|
|
Term
|
Definition
Markets in which people, companies, and governments with more funds than they need transfer those funds to people, companies, or governments that have a shortage of funds. Capital markets promote economic efficiency by transferring money from those who do not have an immediate productive use for it to those who do. Capital markets provide forums and mechanisms for governments, companies, and people to borrow or invest (or both) across national boundaries.
|
|
|
Term
|
Definition
| Money that's borrowed and must be repaid. The bond is the most common example of a debt instrument. |
|
|
Term
|
Definition
| Money that is invested in return for a percentage of ownership but is not guaranteed in terms of repayment. |
|
|
Term
|
Definition
| A company borrows directly by issuing securities to investors in the capital markets |
|
|
Term
|
Definition
| Involves a financial intermediary between the borrower and the saver. For example, if he company deposited the money in a savings account at their bank, and the bank lends the money to a company (or another person), the bank is an intermediary. |
|
|
Term
| International capital markets |
|
Definition
| Global markets where people. companies, and governments with more funds than they need transfer those funds to people, companies, or governments that have a shortage of funds. International capital markets provide forums and mechanisms for governments, companies, and people to borrow or invest, or both across national boundaries. |
|
|
Term
|
Definition
| Where new securities (stocks and bonds are the most common) are issued. The company receives the funds from this issuance or sale. |
|
|
Term
|
Definition
| The secondary market includes stock exchanges (the New York Stock Exchange, the London Stock Exchange, and the Tokyo Nikkei), bond markets, and futures and options markets, among others. Secondary markets provide a mechanism for the risk of a security to be spread to more participants by enabling participants to buy and sell a security (debt or equity). Unlike the primary market, the company issuing the security does not receive any direct funds from the secondary market. |
|
|
Term
|
Definition
| A debt instrument. When investors buy bonds, they are lending the issuers of the bonds their money. In return, they typically receive interest at a fixed rate for a specified period of time |
|
|
Term
|
Definition
| A type of equity security that gives the holder an ownership (or a share) of a company's assets and earnings |
|
|
Term
|
Definition
| In capital markets, this refers to the ease by which shareholders and bondholders ca buy and sell their securities or convert their investments into cash. |
|
|
Term
|
Definition
| Central points for business and finance. They are usually home to major corporations and banks or at least regional headquarters for global firms. They all have at least one globally active stock exchange. While their actual order of importance may differ both on the ranking format and the year, the following cities rank as global financial centers: New York, London, Tokyo, Hong Kong, Singapore, Chicago, Zurich, Geneva, and Sydney. |
|
|
Term
| Offshore Financial Center |
|
Definition
| An offshore financial center is a country or territory where there are few rules governing the financial sector as a whole and low overall taxes. |
|
|
Term
|
Definition
| Enacted in 1932 during the Great Depression, officially called the Banking Reform Act of 1933, created the Federal Deposit Insurance Corporation (FDIC) and implemented bank reforms, beginning in 1932 and continuing through 1933. These reforms are credited with providing stability and reduced risk in the banking industry. |
|
|
Term
|
Definition
| The way a VC or investor can liquidate an investment, usually for a liquid security or cash |
|
|
