Investor Glossary-eurodollarsInvestor Glossary-eurodollarsInvestor Glossary-eurodollarsInvestor Glossary-eurodollarsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Eurodollars

The HTML to link to this page
 

Eurodollars are large US Dollar deposits that are made in foreign bank accounts. Eurodollars can also be deposited within the US in an International Banking Facility by non-US residents and companies. Eurodollars emerged after World War II. Initially, Europe was the main market for eurodollars, hence the prefix "euro" in eurodollars. Although the market for eurodollars has evolved since then to include countries outside Europe, the bulk of eurodollars are still found in Europe, in particular London. Eurodollars are used in international trading and securities markets. The advantage of eurodollars is that they are not under the jurisdiction of the Federal Reserve or the SEC in the case of eurodollar securities (i.e. eurodollar bond). By exporting US deposits, as eurodollars, those deposits are subject to less regulation which tends to provide added benefit to the owner of eurodollars (i.e. better return). The US Dollar is not the only currency being deposited abroad to minimize regulatory costs. The eurosterling (i.e. deposits denominated in pound sterling), and the euroyen (i.e. deposits denominated in yen) are examples of currencies deposited outside of their country of origin.



Rate this Eurodollars definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, minority interest, VIX, class C shares, 1035 exchange, real GDP, 401a, labor relations, per diem, required rate of return, reverse mortgage, stock market close, inflation, LIBOR, margin rate, 144a, debt service coverage, diluted share, in escrow, dividends payable, retained earnings, option premium, Key Rate Duration, quality assurance, FTSE, liquidity ratio, irrevocable trust, command economy, deferred revenue, wholly-owned subsidiary, cancelled check, covered put, average price per share, APR, Zero Cost Collar, 1031 exchange, current ratio, FICO score, balance sheet, annual return, stock split, deferred tax, ex-dividend date, phantom income, ex-dividend, open position, risk management, limit order


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use