Secured Loans
The acquisition abroad of physical assets such as plant and equipment, with
operating control residing in the parent corporation.
Foreign equity market
That portion of the domestic equity market that represents issues floated by
foreign companies.
Foreign exchange
Currency from another country.
Foreign exchange controls
Various forms of controls imposed by a government on the purchase/sale of
foreign currencies by residents or on the purchase/sale of local currency by
nonresidents.
Foreign exchange dealer
A firm or individual that buys foreign exchange from one party and then sells it to
another party. The dealer makes the difference between the buying and selling
prices, or spread.
Foreign exchange risk
The risk that a long or short position in a foreign currency might have to be
closed out at a loss due to an adverse movement in the exchange rates.
Foreign exchange swap
An agreement to exchange stipulated amounts of one currency for another
currency at one or more future dates.
Foreign market
Part of a nations internal market, representing the mechanisms for issuing and
trading securities of entities domiciled outside that nation. Compare external
market and domestic market.
Foreign market beta
A measure of foreign market risk that is derived from the capital asset pricing
model.
