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Branch

• A business run by an MNC that is operated directly within a foreign country without incorporating; it is not separate from the parent, but part of the same entity.

• An operation in a foreign country incorporated in the home country.

 
 Embedded terms in definition
 Foreign
Run
Without
 
 Referenced Terms
 American depositary receipt: Is an instrument which is issued in the United States but based on foreign securities. This security facilitates trading and investment because it is quoted in terms of the U.S. Dollar. This compares to the initial situation of the underlying shares quoted and traded in currencies other than the U. S. dollar.Abbreviated ADR or ADRS. Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a Branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are sponsored, the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. Unsponsored ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American depositary shares (ADSs) are a similar form of certification.Claims issued by U.S. banks representing ownership of shares of a foreign company's stock held on deposit by the U.S. bank in the foreign market and issued in dollars to U.S. investors.A negotiable certificate representing a given number of shares of stock in a foreign corporation; it is bought and sold in the American securities markets, just as stock is traded. ADRs are issued by a U.S. bank, consisting of a bundle of shares of a foreign corporation that are being held in custody overseas. ADRs can be sponsored, which means the corporation provides financial and other information to the bank, or unsponsored. While ADRs have the same currency and economic risks as the underlying foreign shares, they are much more convenient for U.S. shareholders to own since there are no problems in transferring securities from a foreign country or currency conversion.

 Euro cds: CDs issued by a U.S. bank Branch or foreign bank located outside the U.S. Almost all Euro CDs are issued in London.CDs issued by a U.S. bank Branch or foreign bank located outside the U.S. Almost all Euro CDs are issued in London.

 Euro cds: CDs issued by a U.S. bank Branch or foreign bank located outside the U.S. Almost all Euro CDs are issued in London.CDs issued by a U.S. bank Branch or foreign bank located outside the U.S. Almost all Euro CDs are issued in London.

 Euro feds: Eurodollars transmitted over the Fed wire instead of through CHIPS. Normally Euro Feds move from a foreign Branch of one U.S. bank to a foreign branch of another U.S. bank, for example, from Citi Nassau to Morgan London. Foreign banks use CHIPS, not the Fed wire, to pay and receive Euros because they may not run daylight overdrafts at the Fed.

 Eurocurrency deposit: A short-term fixed rate time deposit denominated in a currency other than the local currency (i.e. US$ deposited in a London bank).Deposits made in a bank or bank Branch that is not located in the country in whose currency the deposit is denominated. Dollars deposited in a London bank are Eurodollars; German marks deposited there are Euromarks.

 
 Related Terms
 Shell branch

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