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. Top PEG acronym definition related to defence: Price-to-Earnings Growth ratio Pegging came out on top (pun intended), and it … Music One of the pins of a stringed instrument that are turned to tighten or slacken the strings so as to regulate their pitch. A currency peg is sometimes referred to as a fixed or pegged exchange rate. What does PEG stand for in Business? Like I mentioned, pegging is on the rise in popular culture, even Broad City incorporated into an episode. The price/earnings-to-growth ratio, or the PEG ratio, is a metric that helps investors value a stock by taking into account a company’s market price, its earnings and its future growth prospects. The writer has already collected the premium from the buyer and would ideally like to see the option expire worthless (stock price less than $50 at expiry). What does PEG stand for in Finance? In finance, pegging refers to two different actions. ; To narrow the cuff openings of a pair of pants so that the legs take on a peg shape. Pegged Meaning in Urdu. From the Cambridge English Corpus We pegged ourselves, when giving … For example, an under-priced stock may be a good buy, but it may also be the sign of a company in poor financial shape or an industry in trouble. This results in a stable exchange rate policy between the two. to mark with pegs. to keep (the commodity price, exchange rate, etc.) ; To fix a value or price. showing only Business & Finance definitions (show all 46 definitions). While the act of pegging goes back a very, very long time, the term is relatively new. 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. The 'PEG ratio' (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (), and the company's expected growth. new search; suggest new definition; Search for PEG in Online Dictionary Encyclopedia A dollar peg is when a country maintains its currency's value at a fixed exchange rate to the U.S. dollar. According to Peter Lynch, who popularized the ratio, a fairly priced stock has a … For example, an investor buys a $50 call option, which gives them the right to buy the underlying stock at the strike price of $50, on XYZ stock that expires on June 30th. A lower ratio indicates a less expensive stock with higher earnings and growth, while a higher ratio indicates the opposite. Learn more. Remember, stock prices are largely influenced by investor expectations, demand, and speculation. In Europe, the Swiss franc was pegged to the euro for much of 2011-2015, though this was done more so to curb the strength of the Swiss Franc from a persistent inflow of capital. Yet projections based on a single-year's results are notoriously inaccurate. Peg definition is - a small usually cylindrical pointed or tapered piece (as of wood) used to pin down or fasten things or to fit into or close holes : pin, plug. A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another measure of value, such as gold.. b. Pegging to the U.S. dollar is common. 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. Learn more. have you pegged as phrase. pegged Salaries and stipends must be pegged to the actual cost of living with automatic raises to compensate for inflation. The 'PEG ratio' is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share, and the company's expected growth. more Iraqi Central Bank Definition 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. A peg is a small hook or knob that is attached to a wall or door and is used for hanging things on. Note: We have 229 other definitions for PEG in our Acronym Attic. What does have you pegged as expression mean? Finance PEG acronym meaning defined here. A peg can help to stabilize a currency’s value. A put option gives the holder the right to sell a certain amount of an underlying at a set price before the contract expires, but does not oblige him or her to do so. It originated in a 2001 poll conducted by sexpert and podcast host Dan Savage in which he asked listeners to come up with a word for this sex act. intransitive verb. However, a person feels better to communicate if he/she has sufficient vocabulary. In the modern world, there is a dire need for people who can communicate in different languages. He builds furniture using wooden pegs instead of nails. A country's central bank, at times, will engage in open market operations to stabilize its currency by pegging, or fixing, it to another country's, presumably stabler, currency. 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. ; To affix or pin. See more. peg (pĕg) n. 1. a. showing only Business & Finance definitions (show all 46 definitions). have someone pegged as something phrase. 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. A completely worthless company could have a high stock price because investors keep pushing the price up. This refers to the period of the next twelve months. The two notable types of options are put options and call options. While the act of pegging goes back a very, very long time, the term is relatively new. Pegging is also a strategy deployed by buyers and writers (sellers) of call and put options. Pegging Pegging In finance, pegging refers to two different actions. 2. Components of Currency Peg As you might know, anal sex takes a lot of getting used to. Derived from the hypothetical idea of " pinning (or pegging) a label on someone". 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. The buyer of a put option pays a premium to obtain the right to sell the stock at the specified strike price while the writer of that put option receives the premium and is obligated to buy the stock, and expose themselves to the resulting infinite risk potential, if the buyer chooses to exercise the option contract. It can be used in both the positive and the negative (ie, someone is " pegged " with a characteristic they do not possess; or they are "not pegged" with a true but hidden characteristic.) Definitions by the largest Idiom Dictionary. Wide currency fluctuations can be quite detrimental to international business transactions. The writer wants the price of the underlying stock to remain above $45 MINUS the premium paid per share while the buyer wants to see if below that level. A sex tape featuring Usher and his ex-wife, Tameka Foster, is being shopped around, and rumor has it the activities are slightly kinky. The exchange rate between two currencies may be determined in international foreign exchange markets or in a government office. If a country’s currency value has large fluctuations, foreign companies have a more difficult time operating and generating a profit. The buyer of a call option pays a premium to obtain the right to buy the stock (underlying security) at the specified strike price while the writer of that call option receives the premium and is obligated to sell the stock, and expose themselves to the resulting infinite risk potential, if the buyer chooses to exercise the option contract. peg meaning: 1. a small stick or hook that sticks out from a surface and from which objects, especially clothes…. 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. Dollars into Brazilian Reals to fund the business. to drive or insert a peg into. The converse holds true as well. Pegging came out on top (pun intended), and it … This refers to the period of the next twelve months. Currency Peg Meaning. This situation […] PEG = Price /Earnings/Annual Earnings Growth per Share. 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