European Union (EU)

The European Union (EU) is a union of twenty-five independent states based on the European Communities and founded to enhance political, economic and social co-operation. The union was formerly known as the European Community (EC) and European Economic Community (EEC).

The common currency in the EU is the euro (EUR. Still, some countries have chosen to stay outside the European Monetary Union.

At the moment, the 25 member states are:
  • Austria (EUR)
  • Belgium (EUR)
  • Cyprus (the Greek province)
  • Czech republic
  • Denmark
  • Estonia
  • Finland (EUR)
  • France (EUR)
  • Germany (EUR)
  • Greece (EUR)
  • Hungary
  • Ireland (EUR)
  • Italy (EUR)
  • Latvia
  • Lithuania
  • Luxembourg (EUR)
  • Malta
  • Netherlands (EUR)
  • Poland
  • Portugal (EUR)
  • Slovakia
  • Slovenia
  • Spain (EUR)
  • Sweden
  • United Kingdom of Great Britain and Northern Ireland

Similar financial terms

European Central Bank (ECB)
The Central Bank for the new European Monetary Union.

European Economic Area (EEA)
The European Economic Area (EEA) came into being on 1 January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). It was designed to allow EFTA countries to participate in the European Single Market without having to join the EU. In a referendum, Switzerland (ever keen on neutrality) chose not to participate in the EEA (although it is linked to the European Union by bilateral agreements similar in content to the EEA agreement), so the cu ...

European Economic Community (EEC)
Now incorporated in the European Union (EU).

An international bond sold primarily in countries other than the country in whose currency the issue is denominated

Vega-neutral portfolio
A vega-neutral portfolio has an asset combination which implies a vega of zero.

Euro (replacement name for the ECU) now used in Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy , Luxembourg, Netherlands, Portugal, Spain. Also Andorra , Monaco, Holy See, San Marino and various French dependencies such as French Guiana, French Southern and Antarctic Territories, Guadeloupe, Martinique, Mayotte, Metropolitan France, Réunion and St Pierre and Miquelon.

The Scottish word for freehold

Eurodollar demand deposit
Eurodollar demand deposit accounts are not often used or available, as the balances of such accounts would be volatile and the transaction costs incurred in such a service would reduce the overall efficiency and competitiveness of the eurodollar market. It is the latter factor that stimulates interest-rate-conscious corporate treasures and investment agencies to make eurodollar time deposits with banks in offshore centres.

Risk neutral
Insensitive to risk.

Neutral period
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not start or end on either a Friday or the day before a holiday.

Convertible eurobond
A eurobond that can be converted into another asset, often through exercise of attached warrants.

Force majeure
External contingencies that affect performance of a contract.

"Regarding the passed deadline, Mr. Salih cited, 'force majeure ,' which allows a company to depart from the terms of a contract when an unanticipated event arises."
Wall Street Journal , Sept. 20, 1995, p.B4

Monetary neutrality
A proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in the price level, leaving unchanged the real money supply and all other economic variables such as interest rates.

This theory, a core belief of classical economics, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables ...

A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

Certificates of Deposit (CDS), eurobonds, deposits, or any capital market instrument issued outside of the national boundaries of the currency in which the instrument is denominated (for example, Euro-Swiss francs, Euro-Deutsche marks, eurodollars, eurodollar bonds, or eurodollar CDS).

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Timing option

For a Treasury Bond or note futures contract, the seller's choice of when in the delivery month to deliver.

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