EURIBOR and Equity: Difference between pages

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(Euro Interbank Offered Rate)
1. ''Law''


Sponsored by the European Banking Federation ([http://www.euribor-ebf.eu/ EBF]),  EURIBOR® is a formal benchmark or reference interest rate since 30 December 1998.
A legal system that resolves disputes between persons by resort to principles of fairness and justness.


It estimates the all-in, simple interest rate (including credit premium and liquidity premium) at which euro denominated interbank term deposits for spot value (T+2) are offered within the euro-zone by one prime bank to another prime bank in the period before 10.45 CET each business morning.
EURIBOR is calculated for periods ranging from one day to one year. It is quoted to three decimal places and on an actual/360 day-count.


==Contributing rate estimates==
2.


The panel of banks contributing to Euribor is (September 2013) made up of 32 banks though it has been larger in the past.
The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock or common equity) in a company.


The banks submit their estimate, to two decimal places, of the rate "at which euro interbank term deposits are being offered within the Eurozone by one prime bank to another at 11.00 a.m. Brussels time ("the best price between the best banks")". This is similar to the question for [[LIBOR]] contributing banks prior to reform of LIBOR in 1998 to improve accountability of contributing banks for the submitted rate.


The EBF publish a [http://www.euribor-ebf.eu/assets/files/Euribor_code_conduct.pdf code of conduct] for contributing banks
3.


==Euribor calculation==
Securities representing the rights of the risk capital investors in 2. above.


In calculating the Euribor from the submitted rates, the highest and lowest 15% of submitted rates are ignored and the central 70% remaining is averaged and published to 3 decimal places.
For example, ordinary share certificates.


Thomson Reuters is the screen service provider responsible for computing and also publishing Euribor.


The Euribor process is overseen by a [http://www.euribor-ebf.eu/euribor-org/steering-committee.html Steering Committee].
4. ''Financial reporting''.
 
Amounts in the financial report of a company representing the book value of the interests of the shareholders in 2. above.
 
It includes share capital, cumulative retained profits, and other reserves.
 
It is also known as 'total equity' or 'shareholders' funds'.
 
The book value of total equity is equal to the book value of the company's net assets.
 
 
5. ''Financial reporting''.
 
Comparable amounts for financial reporting entities that are not companies.
 
 
6. ''Banking and bank regulation''.
 
Abbreviation for common equity.
 
 
7.
 
The net value of an asset, after deducting any debt relating to it or secured on it.
 
For example, the value of a residential property, after deducting the amount of a mortgage borrowing secured on it.
 
If the value of the borrowing exceeds the value of the asset, the situation can be described as 'negative equity'.  




== See also ==
== See also ==
* [[Benchmark]]
* [[An introduction to equity capital]]
* [[EONIA]]
* [[Assets]]
* [[InterBank Offered Rate]]
* [[Blue chip]]
* [[LIBOR]]
* [[Book value]]
* [[TIBOR]]
* [[Capital]]
* [[Capital employed]]
* [[Capital structure]]
* [[Common equity]]
* [[Common law]]
* [[Common stock]]
* [[Compound instrument]]
* [[Debt]]
* [[Debt for equity swap]]
* [[Dividend growth model]]
* [[Entity]]
* [[Equity cost of capital]]
* [[Equity instrument]]
* [[Equity investments]]
* [[Equity risk]]
* [[Equity structured deposit]]
* [[Equity swap]]
* [[Kay Review]]
* [[Liabilities]]
* [[Liabilities and equity]]
* [[Market/book ratio]]
* [[Mezzanine]]
* [[Mortgage]]
* [[Net assets]]
* [[Net worth]]
* [[Ordinary shares]]
* [[Own funds]]
* [[Private equity]]
* [[Reporting entity]]
* [[Reserves]]
* [[Return on equity]]
* [[Risk]]
* [[Share]]
* [[Share capital]]
* [[Shareholders’ funds]]
* [[Statement of changes in equity]]
* [[Stock]]
* [[Total Loss Absorbing Capacity]]
* [[Total return swap]]
 
[[Category:Corporate_finance]]
[[Category:Compliance_and_audit]]

Revision as of 22:04, 16 January 2020

1. Law

A legal system that resolves disputes between persons by resort to principles of fairness and justness.


2.

The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock or common equity) in a company.


3.

Securities representing the rights of the risk capital investors in 2. above.

For example, ordinary share certificates.


4. Financial reporting.

Amounts in the financial report of a company representing the book value of the interests of the shareholders in 2. above.

It includes share capital, cumulative retained profits, and other reserves.

It is also known as 'total equity' or 'shareholders' funds'.

The book value of total equity is equal to the book value of the company's net assets.


5. Financial reporting.

Comparable amounts for financial reporting entities that are not companies.


6. Banking and bank regulation.

Abbreviation for common equity.


7.

The net value of an asset, after deducting any debt relating to it or secured on it.

For example, the value of a residential property, after deducting the amount of a mortgage borrowing secured on it.

If the value of the borrowing exceeds the value of the asset, the situation can be described as 'negative equity'.


See also

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