A reference currency is a currency used as a basis for measuring the value or performance of other currencies or financial instruments. In international trade and finance, it is often used as a standard for comparison and conversion of values. For example, in many financial transactions and calculations, such as exchange rates or price indexes, the US dollar, euro, or another stable currency may be used as the reference currency. The reference currency provides a foundation for determining relative value and facilitates international trade and investment.
- Financial dictionary
Reference currency
Reference currency
Related terms
| Term | Definition |
|---|---|
| Retail investor | A retail investor is an individual investor who invests their personal financial resources in various investment instruments, such as stocks, bonds, funds, or real estate. Retail investors are often less experienced compared to institutional investors, such as banks or investment funds, and their investment decisions are typically less complex. Retail investors generally invest through brokers or online investment platforms and may have various investment goals and strategies. |
| Robo-advisory | Robo-advisory is a service that provides automated investment advice using algorithms and software platforms. These services utilize technology to analyze financial data and create personalized investment plans without the need for a human advisor. Robo-advisory platforms typically offer low fees, easy access, and automated portfolio rebalancing. This makes them an attractive option for individuals seeking a time- and cost-effective investment solution. |
| ROC | ROC (return on capital) is a metric that evaluates the profitability of an investment in relation to the capital used. It expresses the profit generated by a company or investment from each euro of invested capital. ROC is used to measure how efficiently a company or project utilizes its capital to generate profit. A high ROC indicates that the company is using its capital effectively, while a low ROC may signal the need for improvements in management and resource allocation. |
| Share | A share is a unit of ownership in an investment fund or company. In the case of investment funds, it represents a portion of the total assets of a fund that belongs to an investor. The value of a share fluctuates depending on the fund's performance and the value of its assets. In the case of company stocks, it represents an ownership stake in the company, giving the shareholder the right to participate in its profits (such as through dividends) and vote at annual general meetings. |
| Share deal | A share deal is a transaction in which the buyer acquires shares or equity interests in the target company, thereby gaining ownership of its assets and liabilities. In a share deal, the transaction does not involve trading individual assets but rather the company itself, meaning all its rights, obligations, contracts, and liabilities are transferred to the new owner. This type of transaction is common in mergers and acquisitions and can be attractive to buyers who wish to maintain existing business relationships and operations of the company. |