Finance and Banking

VALUATION To VISIBLE TRADE (Finance and Banking)

VALUATION 1. The process of determining the intrinsic value of an asset, such as a security, business, or a piece of real estate. The process of determining security valuation involves finding the present value of an asset’s expected future cash flows using the investor’s required rate of return. Thus, the basic security valuation model can […]

UNBUNDLING To UNSYSTEMATIC RISK (Finance and Banking)

UNBUNDLING 1. A strategy that adopts more than one financial tool to transfer funds across countries. 2. Separating cash flows from a subsidiary to a parent company into their many separate components, such as royalties, lease payments, dividend, so as to increase the likelihood that some fund flows will be allowed during economically hard times. […]

ZAIRE To ZERO SUM GAME (Finance and Banking)

ZAIRE The currency of Congo (kinshasa) and Zaire. ZERO-COUPON BOND A bond sold at a deep discount, the zero-coupon bond pays no periodic interests (hence the name), so the total yield is obtained entirely as capital gain on the final maturity date. The interest is added to the principal semiannually and both the principal and […]

YANKEE BONDS To YUAN (Finance and Banking)

YANKEE BONDS Dollar-denominated bonds issued within the United States by foreign banks and companies. YANKEE STOCK OFFERINGS Offerings of stock by non-U.S. MNCs in the U.S. markets. YEN Japanese currency. Its symbol is ¥. YIELD Also called real return or real rate of return. 1. Effective rate of return, or real return. See INTERNAL RATE […]

XENOCURRENCY (Finance and Banking)

XENOCURRENCY A currency that trades outside of its own borders.

WEIGHTED-AVERAGE EXCHANGE RATE To WRITER (Finance and Banking)

WEIGHTED-AVERAGE EXCHANGE RATE The mean or average exchange rate used in translating income and expense accounts at the end of an accounting period, this rate takes into account the relative change of exchange rates during the period and adjusts the consolidated statement with this weighted-average rate. WHOLESALE BANKING Banking services provided between merchant banks and […]

Next Entries →