|
|||||||||||||||||||
|
A system of voting for directors of a corporation in which shareholders total number of votes is equal to his
number of shares held times the number of candidates.
Curb, the
Used for listed equity securities. American Stock Exchange (A.M.E.X.).
Currency
Money.
Currency arbitrage
Taking advantage of divergences in exchange rates in different money markets by buying a currency in one
market and selling it in another market.
Currency basket
The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market
value of another currency. It is also referred to as a currency cocktail.
Currency future
A financial future contract for the delivery of a specified foreign currency.
Currency hedge
Mainly applies to international equities. Hedging technique to guard against foreign exchange fluctuations
(i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).
Currency option
An option to buy or sell a foreign currency.
Currency overvaluation
Mainly applies to international equities. 1) Consideration that a currency is overvalued if private demand for
the currency at the going exchange rate is less than total private supply (i.e., Central banks are buying up
the difference, supporting the value of the currency through foreign exchange intervention); 2) Currency
value exceeding purchasing power parity.
Currency risk
Related: Exchange rate risk
Currency risk sharing
An agreement by the parties to a transaction to share the currency risk associated with the transaction. The
arrangement involves a customized hedge contract embedded in the underlying transaction.
Currency selection
Asset allocation in which the investor chooses among investments denominated in different currencies.
Currency swap
|