Term
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Definition
| Rate at which the market converts one currency into another. |
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Term
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Definition
| Exchange rate that requires immediate settlement with delivery of the traded currency. |
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Term
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Definition
| Exchange rate at which a buyer and seller agree to transact a currency at some date in the future. |
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Term
| What are examples of additional types of currency instruments used in the forward market? |
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Definition
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Term
| What are a component of the global financial markets and an essential mechanism for global firms that need to exchange currencies? |
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Definition
| Well Functioning Currency Markets |
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Term
| What do companies routinely use to manage their exposure to currency risk? |
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Definition
| Currency Instruments Used In Forward Markets |
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Term
| What Do Capital Markets Provide? |
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Definition
| An efficient mechanism for people, companies, and governments with more funds than they need to transfer those funds to people, companies, or governments who have a shortage of funds. |
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Term
| What Markets Have Expanded Exponentially In Recent Decades? |
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Definition
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Term
| What has fueled the expansion of International Equity & Bond Markets? |
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Definition
| The growth of developing markets, the drive to privatize, the emergence of global financial powerhouses including investment banks, and technology advancements. |
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Term
| The international bond market consists of what major categories of bonds? |
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Definition
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Term
| What Do The Major Categories Of Bonds Help Companies Do? |
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Definition
| Borrow funds to invest and grow their global businesses. |
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Term
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Definition
| Investment made by an investor in an early- or growth-stage company. |
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Term
| Typically, VCs establish a venture fund with monies from where? |
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Definition
| Institutions and individuals of high net worth. |
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Term
| VCs Use Venture Funds To Do What? |
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Definition
| Invest in early- and growth-stage companies. |
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Term
| VC investments are characterized primarily by what? |
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Definition
| Fact that they invest in smaller, high-growth firms that are considered higher risk than traditional investments and that the investments are not liquid. |
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Term
| What Does It Mean For An Investment To Not Be Liquid? |
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Definition
| They cannot be quickly bought and sold through the global financial markets. |
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Term
| What Are The Benefits of VC's Riskier and Illiquid Feature? |
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Definition
| They earn much higher rates of return that are sometimes astronomical, if the exit is timed correctly. |
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Term
| One of the key factors that any VC assesses while determining whether or not to invest in a young and growing company is the what? |
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Definition
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Term
| What Is An Exit Strategy? |
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Definition
| The way a VC or investor can liquidate investments, usually for a liquid security or cash. |
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Term
| How has the expansion of the global capital markets benefited VCs? |
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Definition
More Exit Strategies
New potential investors in their venture funds
A wider selection of firms in different countries in which to invest |
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