European Monetary System (EMS)
What is the European Monetary System (EMS)? The European Monetary System (EMS) refers to an arrangement established in 1979, whereby members of the European Economic Community (now the European Union) agreed to link their currencies to encourage monetary stability in Europe. The EMS aimed to create a stable exchange rate for easier trade and cooperation...
European Banking Authority (EBA)
What is the European Banking Authority (EBA)? The European Banking Authority (EBA) is an agency that aims to supervise financial integrity and ensure financial stability across the European Union (EU). The EBA is a part of the European System of Financial Supervision (ESFS), which works to ensure that the European single market functions efficiently through...
European Union (EU)
What is the European Union (EU)? The European Union (EU) is a unified international organization that governs the economic, political, and social policies of 27 member states. Originally formed with the desire to achieve peace in Europe, current EU policies are tailored to ensure the free movement of people, goods, services, and capital among its...
Cross Holding
What is Cross Holding? Cross holding, also referred to as cross shareholding, describes a situation where one publicly-traded company holds a significant number of shares of another publicly-traded company. The shares owned of the second publicly-traded company are referred to as a cross-holding of the first company. Cross holdings present potential valuation problems for financial...
Foregone Earnings
What are Foregone Earnings? Foregone earnings are potential earnings that could’ve been achieved but are absent due to charged fees, expenses, or lost time. An example is the investment costs incurred by an investor paying fees such as management fees for a mutual fund or exchange-traded fund (ETF) investment or commissions to a stock brokerage...
