Any one of a number of legal structures under which a company can participate in the foreign economy. FIEs tend to have tight government regulation at nearly every important business juncture, which limits the efficiency at which any foreign company can profit from foreign ventures as well as the amount of control that a foreign parent has over the FIE. |||Setting up an FIE is a common method of creating an operation in Asian countries, especially in China. In China, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS).
The currency abbreviation for the El Salvador colón (SVC), the currency for El Salvador from 1919 to 2001. The El Salvador colón was made up of 100 centavos, and was replaced by the U.S. dollar at a rate of 8.75:1 in 2001. |||The El Salvador colón was taken on as the official currency of El Salvador in 1919, when it replaced the peso at par. From 1919 to 1931, the colón was pegged to the U.S. dollar at 2 colónes to 1 U.S. dollar, after which its value was allowed to freely float against other currencies.
The illegal act of bidding up the value of a fund's holdings right before the end of a quarter, when the fund's performance is measured. This is done by placing a large number of orders on existing holdings, which drives up the value of the fund. Also known as "marking the close". Portfolio pumping can be highly destructive for investors in the fund because it is a temporary gain and the stocks will generally fall back to previous levels once the price manipulation is over. For example, if a fund has 1,000 shares of ABC purchased for $10 per share, if the shares are trading at $9 right before the managers’ performance is measured, they will have performed poorly. As a result, the managers may resort to portfolio pumping and place enough orders to bid the price to $14, dramatically increasing the fund’s performance. However, it is likely that the shares will fall back towards $9, leaving investors with a $9 stock that was made to look like a $14 stock.
The purchase and sale of a security within a short period of time, usually on the same day. Generally speaking, this is the strategy of day traders, where they attempt to profit by buying or short selling large quantities of stock to capitalize on small changes in price.
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Derivatives are contracts and can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region. Derivatives are generally used as an instrument to hedge risk, but can also be used for speculative purposes. For example, a European investor purchasing shares of an American company off of an American exchange (using U.S. dollars to do so) would be exposed to exchange-rate risk while holding that stock. To hedge this risk, the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into Euros.
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. |||The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies.
The currency abbreviation for the Thai baht (THB), the currency for Thailand. The Thai baht is made up of 100 satang and is often presented as β. 25 satang is often referred to as a "salung" based on the predecimalization days, when one-quarter of a baht was known as a salung. |||The Thai baht has always been the currency of Thailand, but prior to the 19th century, it was known as the tical. Prior to 1897, the baht was subdivided into many different denominations, such as the bia (1/6400 baht), and the feuang (1/8 baht). In 1897, the present decimalization system was introduced and the old denominations were replaced by 1910.
The person or persons responsible for investing a mutual, exchange-traded or closed-end fund's assets, implementing its investment strategy and managing the day-to-day portfolio trading. The portfolio manager is one of the most important factors to consider when looking at fund investing. Portfolio management can be active or passive (index tracking). Historical performance records indicate that only a minority of active fund managers beat the market indexes.