Pre-transaction risk and Preferred stock: Difference between pages

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imported>Doug Williamson
(Expand to deal with multiple export markets.)
 
imported>Doug Williamson
m (Spacing 21/8/13)
 
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''Foreign exchange risk management''
Stock that is issued with a stated dividend that must be paid before dividends to common stock holders.


1.
Preferred stock does not usually have voting rights.
 
Pre-transaction foreign exchange risk arises from needing to commit to a price before actually entering into transactions or commercial agreements.
 
For example, an exporter may need to publish price lists in the currencies of its customers' local markets.
 
Pre-transactional currency exposure also exists when an organisation tenders for a contract priced in a foreign currency, or where there are associated foreign currency costs, for example for materials, labour or other operational inputs.
 
Some practitioners do not identify pre-transaction risk as a separate class of risk, rather considering it to be a shorter-term type of economic exposure.
 
 
2.
 
The same as Contingent risk as applied to currency management.
 
 
Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.




== See also ==
== See also ==
* [[Contingent risk]]
* [[Common stock]]
* [[Currency risk]]
* [[Economic risk]]
* [[Foreign exchange risk]]
* [[Translation risk]]
* [[Transaction risk]]
 
[[Category:Manage_risks]]

Revision as of 13:07, 21 August 2013

Stock that is issued with a stated dividend that must be paid before dividends to common stock holders.

Preferred stock does not usually have voting rights.


See also