|European Currency Unit (ECU)|
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Definition of European Currency Unit (ECU)
European Currency Unit (ECU)
An index of foreign exchange consisting of about 10 european currencies,
Dollar deposits held in Singapore or other Asian centers.
A security that is collateralized by loans, leases, receivables, or installment contracts
A currency that is not freely convertible to other currencies due to exchange controls.
The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
A security that can be converted into common stock at the option of the security holder,
Taking advantage of divergences in exchange rates in different money markets by
The value of a portfolio of specific amounts of individual currencies, used as the basis for
A financial future contract for the delivery of a specified foreign currency.
An option to buy or sell a foreign currency.
Related: Exchange rate risk
An agreement by the parties to a transaction to share the currency risk associated with
Asset allocation in which the investor chooses among investments denominated in
An agreement to swap a series of specified payment obligations denominated in one currency
IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
A financial security, such as an option, or future, whose value is derived in part from the
Devaluation A decrease in the spot price of the currency
Non-interest-bearing money market instruments that are issued at a discount and
Doctrine of sovereign immunity
Doctrine that says a nation may not be tried in the courts of another country
Eurobonds that pay coupon interest in one currency but pay the principal in a different
A short-term fixed rate time deposit denominated in a currency other than the local
The money market for borrowing and lending currencies that are held in the form of
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
Option that may be exercised only at the expiration date. Related: american option.
European Union (EU)
An economic association of european countries founded by the Treaty of Rome in
An option contract that can only be exercised on the expiration date.
Security that grants the security holder the right to exchange the security for the
The process of completing an order to buy or sell securities. Once a trade is executed, it is reported
The difference between the execution price of a security and the price that would have
Instruments exempt from the registration requirements of the Securities Act of 1933 or the
Federal agency securities
Securities issued by corporations and agencies created by the U.S. government,
A nonnegotiable debt security that can be redeemed at some fixed price or according to
Foreign currency option
An option that conveys the right to buy or sell a specified amount of foreign
Foreign currency translation
The process of restating foreign currency accounts of subsidiaries into the
Future investment opportunities
The options to identify additional, more valuable investment opportunities
Negotiable U.S. Treasury securities.
Opportunity to invest in profitable projects.
A freely convertible currency that is not expected to depreciate in value in the foreseeable future.
The security to which a warrant is attached.
A convertible security whose optioned common stock is trading in a middle range, causing
Manufactured housing securities (MHSs)
Loans on manufactured homes - that is, factory-built or
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Securities backed by a pool of mortgage loans.
Such a clause on a Euro loan permits the borrower to switch from one currency to
Give the borrower the possibility of drawing a loan in different currencies.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Opportunity cost of capital
Expected return that is foregone by investing in a project rather than in
The difference in the performance of an actual investment and a desired investment
The possible expected return and standard deviation pairs of all portfolios that can be
A pool of fixed-income securities backed by a package of assets (i.e. mortgages)
Portfolio opportunity set
The expected return/standard deviation pairs of all portfolios that can be
Present value of growth opportunities (NPV)
Net present value of investments the firm is expected to make
An instrument such as a stock or bond for which payments depend only on the financial
Project loan securities
Securities backed by a variety of FHA-insured loan types - primarily multi-family
Public Securities Administration (PSA)
The trade association for primary dealers in U.S. government
The currency in which the parent firm prepares its own financial statements; that is, U.S.
A foreign currency held by a central bank or monetary authority for the purposes of
Debt that, in the event of default, has first claim on specified assets.
Securities & Exchange Commission
The SEC is a federal agency that regulates the U.S.financial markets.
The process of creating a passthrough, such as the mortgage pass-through security, by which
Piece of paper that proves ownership of stocks, bonds and other investments.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of
Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited
Security deposit (maintenance)
Related: Maintenance margin security market line (SML). A description of
Security market line
Line representing the relationship between expected return and market risk.
Security selection decision
Choosing the particular securities to include in a portfolio.
A currency that is expected to drop in value relative to other currencies.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Speculative grade bond
Bond rated Ba or lower by Moody's, or BB or lower by S&P, or an unrated bond.
A desire to hold cash for the purpose of being in a position to exploit any attractive
One, who attempts to anticipate price changes and, through buying and selling contracts, aims to
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the
Securities issued by the U.S. Department of the Treasury.
Options: the security subject to being purchased or sold upon exercise of an option
Unit benefit formula
Method used to determine a participant's benefits in a defined benefit plan by
Unit investment trust
Money invested in a portfolio whose composition is fixed for the life of the fund.
Debt that does not identify specific assets that can be taken over by the debtholder in case of default.
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
Virtual currency option
A new option contract introduced by the PHLX in 1994 that is settled in US$ rather
UNITS OF PRODUCTION
A depreciation method that relates a machine’s depreciation to the number of units it makes each
The lost opportunity of not doing something, which may be financial or non-financial, e.g. time.
Securities and Exchange Commission (SEC)
The federal agency that
The profit per unit sold of a product after deducting product
Expenses that vary in close proportion to changes
Security Market Line
A graph illustrating the equilibrium relationship between the
a unit that has been rejected at a control inspection
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
European Union (EU)
an economic alliance originally created
a potential benefit that is foregone because
opportunity cost of capital
the highest rate of return that
a unit that is rejected at a control inspection
total units to account for
the sum of the beginning inventory
a cost caused by the production or acquisition
units started and completed
the difference between the number of units completed for the period and the units in beginning inventory; it can also be computed as the number of units started during the period minus the units in ending inventory
An option that can be exercised only on its expiration date.
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