more Iraqi Central Bank Definition showing only Business & Finance definitions (show all 46 definitions). A classic example is currency pegging, in which the value of a nation's currency is pegged to the value of another currency which is viewed as reliable and highly stable. A pegged exchange rate, also known as a fixed exchange rate, is a type of exchange rate in which a currency's value is fixed against either the value of another country's currency or another measure of value, such as gold. With the exception of Kuwait, whose currency is pegged to a currency basket in which the dollar plays an overwhelming role, all other GCC economies have had their currencies pegged to the dollar for several decades, given their long-standing reliance on oil for exports and fiscal revenues Pegging is a practice which is used to increase market stability by fixing values relative to assets of stable value. A pegged-to-market order is designed to maintain a purchase price relative to the national best offer (NBO) or a sale price relative to the national best bid (NBB). However, a PEG ratio, by itself, does not provide an adequate basis for an investment decision, any more than a P/E does, because it doesn't take company fundamentals into account. The Price/Earnings to Growth Ratio allows you to determine a stock's value, like with the P/E ratio, while also taking into consideration the company's earnings growth. An adjustable peg is an exchange rate policy where a currency is pegged or fixed to a currency, such as the U.S. dollar or euro, but can be readjusted. PEG abbr. A less known definition of pegging occurs mainly in futures markets and entails a commodity exchange linking daily trading limits to the previous day's settlement price so as to control price fluctuations. In finance, pegging refers to two different actions. A currency peg is sometimes referred to as a fixed or pegged exchange rate. A similar pin forming a projection that may be used as a support or boundary marker. China's currency is no longer pegged to the American dollar. A peg is a small hook or knob that is attached to a wall or door and is used for hanging things on. It is useful for adjusting high growth companies. Encyclopedia. A dollar peg is when a country maintains its currency's value at a fixed exchange rate to the U.S. dollar. PEG Ratio is the P/E ratio of a company divided by the forecasted Growth in earnings (hence "PEG"). Top PEG acronym definition related to defence: Price-to-Earnings Growth ratio Find the latest Public Service Enterprise Group (PEG) stock quote, history, news and other vital information to help you with your stock trading and investing. Learn more. 3. But that doesn't mean it's the only truth. Wide currency fluctuations can be quite detrimental to international business transactions. Pegging came out on top (pun intended), and it … If the price is very close to the strike PLUS premium per share level just before the option's expiry date then the buyer and especially the writer of the call would have incentive to be active in buying and selling the underlying stock respectively. Put to seller is when a put option is exercised, and the put writer becomes responsible for receiving the underlying shares at the strike price to the long. The required item quantities are automatically reserved for the production. First, a peg is the act of linking the exchange rate of one currency to another. A must be filled (MBF) order is a trade that must be executed due to expiring options or futures contracts. to mark with pegs. Components of Currency Peg NTM EBITDA indicates the company’s EBITDA over the next twelve months (NTM) of operations and represents a crucial financial measure that a buyer considers when conducting its valuation. polyethylene glycol peg (pĕg) n. 1. a. Vendor. For most countries, the general practice is to peg the exchange rate of their currency to that of the U.S. dollar. Gearing refers to the ratio of a company's debt relative to its equity; if it's high, then a firm may be considered as highly geared (or leveraged). ; To affix or pin. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. If an exchange rate — say, the yen–dollar rate — is determined in international foreign exchange markets based on the demand for and supply of the yen, then the markets determine the exchange rate. From Longman Business Dictionary currency peg ˈcurrency ˌpeg noun [countable] FINANCE when a country directly relates the value of its currency to the value of another currency, usually the dollar Forecasters predict no change in Hong Kong’s currency peg this year, but think that China will allow the yuan to trade more freely next year. Top PEG abbreviation related to Business: Price-to-Earnings Growth 2. Pegging is also a strategy deployed by buyers and writers (sellers) of call and put options. pegged currency meaning: a currency whose value is controlled so that it stays at a particular level in relation to another: . It is the convention for quoting … All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. It is assumed that by … b : to fix or hold (something, such as prices or wage increases) at a predetermined level or rate. In general, the P/E ratio is higher for a company with a higher growth rate. Let's peg the rug to the floor. For example, the currency of China was pegged with US dollars until 2015. ging. The PEG ratio, often called Price Earnings to Growth, is an investment calculation that measures the value of a stock based on the current earnings and the potential future growth of the company.In other words, it’s a way for investors to calculate whether a stock in over or under priced by considering the earnings today and the rate of growth the company will achieve into the future. Remember, stock prices are largely influenced by investor expectations, demand, and speculation. Pegged Meaning in Urdu - In the age of digital communication, any person should learn and understand multiple languages for better communication. have someone pegged as something phrase. A small cylindrical or tapered pin, as of wood, used to fasten things or plug a hole. Pegging is controlling a country's currency rate by tying it to another country's currency or steering an asset's price prior to option expiration. Currency Peg Meaning. See more. The ratio adjusts the traditional P/E ratio by taking into account the growth rate in earnings per share that are expected in the future. For example, an investor buys a put option on XYZ stock with a strike price of $45 that expires on July 31st and pays required premium. The writer receives the premium and the waiting game begins. This should go without saying, but obviously, if … That is especially true of estimates that look out five or more years, since there is no way to anticipate the shifting marketplace with real precision. being pegged The process by which a male or female is 'penetrated' by another in a somewhat fiesty manner. Dollarization and currency boards are among the examples of hard pegs, which severely limit the possibility of an autonomous (independent) monetary policy in a country. to drive or insert a peg into. Peg definition: A peg is a small hook or knob that is attached to a wall or door and is used for hanging... | Meaning, pronunciation, translations and examples A peg is a small hook or knob that is attached to a wall or door and is used for hanging things on. In brief, if a stock has a PEG ratio of 1, you conclude that investors are paying what the stock is worth based on its P/E and growth potential. A completely worthless company could have a high stock price because investors keep pushing the price up. incorporates aspects of floating and fixed exchange rate systems A currency peg is defined as the policy wherein the government or the central bank maintains a fixed exchange rate to the currency belonging to another country, resulting in a stable exchange rate policy between the two.