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Financial Terms | |
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,
Related Terms:Asian currency units (ACUs)Dollar deposits held in Singapore or other Asian centers. Asset-Backed SecuritiesBond or note secured by assets of company. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Blocked currencyA currency that is not freely convertible to other currencies due to exchange controls. Book-entry securitiesThe 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 Convertible securityA security that can be converted into common stock at the option of the security holder, ![]() CurrencyMoney. Currency arbitrageTaking advantage of divergences in exchange rates in different money markets by Currency basketThe value of a portfolio of specific amounts of individual currencies, used as the basis for Currency futureA financial future contract for the delivery of a specified foreign currency. Currency optionAn option to buy or sell a foreign currency. Currency riskRelated: Exchange rate risk Currency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with Currency selectionAsset allocation in which the investor chooses among investments denominated in Currency swapAn agreement to swap a series of specified payment obligations denominated in one currency ![]() Debt securitiesIOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and Debt SecurityA security representing a debt relationship with an enterprise, including a government defective unita unit that has been rejected at a control inspection Derivative securityA 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
Discount securitiesNon-interest-bearing money market instruments that are issued at a discount and Doctrine of sovereign immunityDoctrine that says a nation may not be tried in the courts of another country Dual-currency issuesEurobonds that pay coupon interest in one currency but pay the principal in a different Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. equivalent units of production (EUP)an approximation of the number of whole units of output that could have been ![]() Eurocurrency depositA short-term fixed rate time deposit denominated in a currency other than the local Eurocurrency marketThe 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 European optionOption that may be exercised only at the expiration date. Related: american option. European optionAn option that can be exercised only on its expiration date. European-style optionAn option contract that can only be exercised on the expiration date. European Union (EU)An economic association of european countries founded by the Treaty of Rome in European Union (EU)an economic alliance originally created Exchangeable SecuritySecurity that grants the security holder the right to exchange the security for the ExecutionThe process of completing an order to buy or sell securities. Once a trade is executed, it is reported Execution costsThe difference between the execution price of a security and the price that would have Exempt securitiesInstruments exempt from the registration requirements of the Securities Act of 1933 or the Federal agency securitiesSecurities issued by corporations and agencies created by the U.S. government, Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Fixed-income securityA security that pays a specified cash flow over a floating-rate securitySecurity paying dividends or interest that vary with short-term interest rates. Foreign currencyForeign money. Foreign currency optionAn option that conveys the right to buy or sell a specified amount of foreign Foreign currency translationThe process of restating foreign currency accounts of subsidiaries into the Future investment opportunitiesThe options to identify additional, more valuable investment opportunities Government securitiesNegotiable U.S. Treasury securities. Growth opportunityOpportunity to invest in profitable projects. Hard currencyA freely convertible currency that is not expected to depreciate in value in the foreseeable future. Held-to-Maturity SecurityA debt security for which the investing entity has both the positive Host securityThe security to which a warrant is attached. Hybrid securityA 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 Marketable securityAn easily traded investment, such as treasury bills, which is Monthly income preferred security (MIP)Preferred stock issued by a subsidiary located in a tax haven. Mortgage-backed securitiesSecurities backed by a pool of mortgage loans. Mortgage-Backed Securities Clearing CorporationA wholly owned subsidiary of the Midwest Stock Mortgage pass-through securityAlso called a passthrough, a security created when one or more mortgage Multicurrency clauseSuch a clause on a Euro loan permits the borrower to switch from one currency to Multicurrency loansGive the borrower the possibility of drawing a loan in different currencies. Net present value of growth opportunitiesA model valuing a firm in which net present value of new Nonmarketable SecurityA debt or equity security for which there is no posted price or bidand- Nonrecurring ItemsRevenues or gains and expenses or losses that are not expected to recur Opportunity costThe lost opportunity of not doing something, which may be financial or non-financial, e.g. time. opportunity costa potential benefit that is foregone because Opportunity costLost revenue that would otherwise have been realized if a different opportunity costBenefit or cash flow forgone as a result of an action. Opportunity CostThe forgone value of an alternative not chosen, usually the most profitable alternative. Opportunity cost of capitalExpected return that is foregone by investing in a project rather than in opportunity cost of capitalthe highest rate of return that opportunity cost of capitalExpected rate of return given up by investing in a project. Opportunity costsThe difference in the performance of an actual investment and a desired investment Opportunity setThe possible expected return and standard deviation pairs of all portfolios that can be Pass-through securitiesA pool of fixed-income securities backed by a package of assets (i.e. mortgages) Personal Responsibility and Work Opportunity Reconciliation ActA federal Act requiring the reporting of new hires into a national database. Portfolio opportunity setThe 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 present value of growth opportunities (PVGO)Net present value of a firm’s future investments. Primitive securityAn instrument such as a stock or bond for which payments depend only on the financial Project loan securitiesSecurities 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 Recurring EBITDAThe standard EBITDA with the effects of nonrecurring items removed. Reporting currencyThe currency in which the parent firm prepares its own financial statements; that is, U.S. Reserve currencyA foreign currency held by a central bank or monetary authority for the purposes of Reserve CurrencyA currency, frequently the U.S. dollar, that is used by other countries to denominate the assets they hold as international reserves. Secured debtDebt that, in the event of default, has first claim on specified assets. secured debtDebt that has first claim on specified collateral in the event of default. secured loan or line of creditA lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral. SecuritiesA general term for stock, bonds, or other other financial assets. Securities analystsRelated:financial analysts Securities and Exchange Commission (SEC)The federal agency that Securities and Exchange Commission (SEC)Federal agency responsible for regulation of securities markets in the united Securities and Exchange Commission (SEC)A federal agency that administers securities legislation, Securities & Exchange CommissionThe SEC is a federal agency that regulates the U.S.financial markets. SecuritizationThe process of creating a passthrough, such as the mortgage pass-through security, by which SecuritizationThe pooling and repackaging of similar items into marketable securities that can be sold to investors. SecurityPiece of paper that proves ownership of stocks, bonds and other investments. SecurityEither the collateral on a loan, or some type of equity ownership or debt, such Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |