Exchange A platform or market where bonds, shares, futures and options on stocks, indices and commodities can be traded. Main stock exchanges in the U.S: New York Stock Exchange (NYSE), the National Association of Securities Dealers (NASDAQ), American Stock Exchange (AMEX). … [Read more...]
The Exchange
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The Exchange The New York stock exchange. Also termed Big Board. Location: Wall Street, New York City. Over 2,000 preferred and common stocks are traded here. Founded in 1792, this is the oldest and largest exchange in the U.S. … [Read more...]
Exchange Controls
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Exchange Controls Restrictions placed by the Government over purchase of local/ domestic currency by citizens of other countries or purchase of overseas currencies by local/ domestic citizens. … [Read more...]
Exchange Distribution
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Exchange Distribution Trade wherein several buy- sell orders have been pooled into one transaction that is carried out with a large block of shares being traded in an exchange. … [Read more...]
Exchange of Assets
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Exchange of Assets Purchase or acquisition of a different business by means of buying its assets and paying cash or stock in exchange. … [Read more...]
Exchange of Stock
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Exchange of Stock Buying or acquiring another company through acquiring its stock by paying shares or cash in exchange. … [Read more...]
Exchange Offer
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Exchange Offer A firm’s offer to exchange one security, for example, bond or preferred stock, for another security, such common stock shares. … [Read more...]
Exchange Rate
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Exchange Rate Current price of currency of a country as expressed in terms of currency used in another country. … [Read more...]
Exchange Rate Mechanism (ERM)
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Exchange Rate Mechanism (ERM) Methodology that enables EMS members to maintain their exchange rates for currency within a range previously agreed upon, when compared with other members. … [Read more...]
Exchange Rate Risk
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Exchange Rate Risk Also termed currency risk. Risk of changes in the value of investment arising out changes in exchange rates of currency. … [Read more...]
Exchange Risk
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Exchange Risk The fluctuation in a firm's value that is the outcome of unpredicted exchange rate movements. Or the degree to which the current value of a business is predicted to fluctuate as a consequence of a specific currency's decline in value or appreciation in value. … [Read more...]
Exchangeable Security
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Exchangeable Security Securities that enable the holder to rightfully carry out an exchange with it for common stock of a business distinct from the one issuing it. … [Read more...]
Excluded Commodity
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Excluded Commodity Commodity that cannot be impacted or manipulated. Includes many financial products and any events that are linked to the commodity but is beyond control of any party affected by the prices. … [Read more...]
Exclusionary Self-Tender
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Exclusionary Self-Tender The process by which a firm closes off a portion of stock owned by it from targeted stockholders by entering a tender for it. … [Read more...]
Execution
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Execution Completion of an order/ instruction to sell or purchase securities. Once executed, a Confirmation Report describes the trade. In U.S., settlement of cash/ commodity and ownership changeover occurs between 1 and 5 days after execution, varying according to type of … [Read more...]
Execution Costs
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Execution Costs Execution price of the security minus price that would have prevailed if trade did not take place. This can be further split into market timing costs and market impact costs. … [Read more...]
Exempt Securities
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Exempt Securities Those investment instruments that claim exemption from registration stipulations of the 1933 Securities Act or margin requirements outlined in the 1934 SEC Act. Includes government bonds, munis, agencies, private placements and commercial paper. … [Read more...]
Exercise
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Exercise Bringing into effect or implementing a right of an option holder to purchase (for a call option) or sell (for a put option) the security underlying the contract. … [Read more...]
Exercise Price
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Exercise Price Purchase or sale price of an underlying futures contract or options contract. … [Read more...]
Exercise Value
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Exercise Value The benefit beyond a current market trade afforded by an option that is in-the-money. … [Read more...]
