TRANSACTION EXPOSURE Definition

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TRANSACTION EXPOSURE, in foreign exchange, is the possibility of incurring exchange gains or losses on transactions already entered into and denominated in a foreign currency. It is typified by real exchange gains or losses and mixes retrospective and prospective views. It is short-term in nature.

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CORPORATE BOND is evidence of debt owed by a corpora­tion, issued for the purpose of borrowing money, and promising to return the face value of borrowed money at maturity. Corporate bonds usually pay interest at regular intervals twice each year.

ELECTRONIC DATA INTERCHANGE (EDI) is the use of communication between an entity and customers or suppliers to transact business electronically. Purchases, shipping, billing, cash receipts, and cash disbursements can be completed entirely by exchanging electronic messages.

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