Lesson 123 Flashcards
defined as accumulated wealth that is available to create further wealth.
Capital
takes many forms in the capital markets and financial institutions play a critical role
in assessing, managing and distributing risk.
Risk
In finance, it is the market for eurocurrencies: these are all currencies that are
held as deposits by companies or individuals outside of their country of issue.
2. In commerce, it refers to the single market of the European Union (EU) in
which goods and services are freely traded between member countries, and
which have a common trade policy with non-EU countries.
Euromarket?
is the biggest financial center in the world, many of the
developments that led to today’s international marketplace for money actually originated
in London
New York
is a leadingfinancial servicescompany, advising clients in
all aspects of finance, across the globe and around the clock.
Credit SuisseGroup
k is a bank that combines the three main services of banking
under one roof.
universal bank
refers to a financial institution that accepts deposits,
offers checking account services, makes various loans, and offers basic financial
products like certificates of deposit (CDs) and savings accounts to individuals
and small businesses.
commercial bank
is where most people do their banking.
commercial bank
is a type of foreign entity that is located and incorporated in
a foreign country but is either wholly-owned or owned in a major part by
a parent corporation in a different nation.
subsidiary bank
only have to operate under the laws and regulations of the host
country.
•This particular banking model helps the parent company avoid unfavorable
regulations enforced by the home country.
subsidiary bank
are typically unable to offer a full suite of retail banking
services.
•Subsidiary banks
also known as consumer banking or personal banking, is
banking that provides financial services to individual consumers rather than businesses
Retail banking,
is a way for individual consumers to manage their money, have
access to credit, and deposit their money in a secure manner.
Retail banking
refers to banking services sold to large clients, such as
other banks, other financial institutions, government agencies, large
corporations, and real estate developers.
Wholesale banking
refers to banking services sold to large clients, such as
corporations, other banks, and government agencies.
Wholesale banking
is the process through which an individual or institution takes
on financial risk for a fee.
Underwriting
markets for borrowing and lending funds over the short
term.
money markets
which is an international market in which banks take deposits and
make loans in a range of currencies outside the home country for those currencies and
out with the direct regulatory control of the central banks responsible for those
currencies.
Eurocurrency market
et is a financial market within a given country for products
and services.
domestic market
is defined geographically as a market outside the
international borders of a company’s country of citizenship
International market
are short-term negotiable securities issued in their domestic money
markets by governments such as the US, the UK, France and Germany.
TREASURY BILLS
(or T-Bills for short) are a short-termfinancial
instrumentthat is issued by the US Treasury with maturity periods ranging
from a few days up to 52 weeks (one year).
Treasury Bills
bills are sold at a discount to thepar value, which is its actual
value.
Treasury bills
is the nominal or face value of a bond, share of stock, or coupon as
indicated on a bond or stock certificate.
Par value
the investor agrees to accept the discount rate
determined at auction.
Non-competitive bid
investors buy T-bills at a specific discount
rate that they are willing to accept.
Competitive bidding auctions
Investors can buy or sell Treasury bills
Secondary market
where investors buy and sell securities from other
investors (think ofstock exchanges).
secondary market
are trade-related negotiable bills issued by companies but
accepted or guaranteed by a bank in return for a fee. They can be freely traded in the
secondary market.
BANKERS’ ACCEPTANCES
The accepting bank guarantees that the face value of the bill will be paid at maturity.
Bankers’s acceptances
are backed by documentation such
as invoices held by the accepting bank. The instrument traded in the secondary market will
often simply be a note briefly describing the underlying commercial trade and specifying
the name of the accepting bank.
Bankers’s acceptances
is a negotiable piece of paper that functions like a
post-dated check.
Banker’s acceptance
is a written order used primarily in international trade that binds
one party to pay a fixed sum of money to another party on demand or at a
predetermined date.
bill of exchange
refers to trading in very short-term debt investments. At the
wholesale level, it involves large-volume trades between institutions and traders.
money market
is a form of payment that is guaranteed by a bank rather
than an individual account holder.
•The bank guarantees payment at a later time
most frequently used in international trade to finalize transactions with
relatively little risk to either party.
traded at a discount in the secondary money markets.
•Thus, unlike a post-dated check, BAs can be investments that are traded, generally
at a discounted price (similar to Treasury bills).
Banker’s Acceptance
economics, refers to how different industries are classified
and differentiated based on their degree and nature of competition for goods
and services. It is based on the characteristics that influence the behavior and
outcomes of companies working in a specific market.
Market Structure
is the trading of one currency for another.
For example, one can swap the U.S. dollar for the euro.
can take place on the foreign exchange market, also known as the forex
Foreign Exchange
s the largest, most liquid market in the world, with trillions
of dollars changing hands every day.
forex market
a global market for exchanging national
currencies with one another.
Foreign Exchange
an individual or firm that acts as an intermediary between an investor
and a securities exchange.
broker
a deal between two parties.A broker generally never buys or
sells stocks himself,being instead themiddleman between the investor and the
market, and either sendingan order to a market where it can be executed or finding
the other party to the trade directly.
broker
instead, isusually on the other side of the trade and you will be buying or
selling with the dealer himself as the counterparty.
dealer,
a stock typically refers to the stock of a small company that trades
for less than $5 per share.
Penny stocks -
working for banks tend to specialize in one or more of a small group of closely
related currency pairs.
FX dealers
Danish investment bank specializing in online trading and
investment.
Saxo Bank i
UK-based financial services company that offers online trading
in shares, spread betting, contracts for difference (CFDs) and foreign
exchange across world markets.
CMC Markets
is any of various types of wagering on the outcome of an event
where the pay-off is based on the accuracy of the wager, rather than a simple “win or
lose” outcome
Spread betting i
is the wagering something
of value (“the stakes”) on an event with an uncertain outcome with the intent of
winning something else of value
Gambling
is a contract between two parties,
typically described as “buyer” and “seller”, stipulating that the buyer will pay to the
seller the difference between the current value of an asset and its value at contract
time (if the difference is negative, then the seller pays instead to the buyer).
contract for difference (CFD)
a dedicated forex broker, regulated in multiple countries.
founded in 2001 as part of GAIN Capital Holdings, is an established
global online broker that caters to individuals seeking to trade the retail FX
Forex.com
co-founded by Dr. Stumm and Dr. Olsen in 1996, advertises that it does
“all things currency,” from currency conversion to providing FX data services for
businesses to offering an established global online brokerage service to individuals
seeking to trade the retail FX
Oanda
transaction, also known as FX spot, is an
agreement between two parties to buy one currency against selling another
currency at an agreed price for settlement on the spot date.
Foreign exchange spot
is the current price level in the market to directly
exchange one currency for another, for delivery on the earliest
possible value date.
Spot exchange rate
refers to the day when a spot transaction is typically settled,
meaning when the funds involved in the transaction are transferred.
Spot date
