Thus, using just the P/E ratio would make high-growth companies appear overvalued relative to others. Pegging to the U.S. dollar is common. A put option grants the right to the owner to sell some amount of the underlying security at a specified price, on or before the option expires. Idioms. Pegging is a practice which is used to increase market stability by fixing values relative to assets of stable value. Most countries that peg their currencies do so to the U.S. dollar, though some peg to currency baskets. Pegging explain. The required item quantities are automatically reserved for the production. PEG abbr. This activity is known as pegging. 2. 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. 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. If it is higher than 1 -- say 1.55 -- you conclude that investors are paying more than the growth projection justifies. Derived from the hypothetical idea of " pinning (or pegging) a label on someone". A peg is a small piece of wood or metal that is used for fastening something to something else. A peg can help to stabilize a currency’s value. She lunged forward and pegged him to the wall. 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. Only at this level would it make sense for the buyer to exercise the option and the seller would be theoretically exposed to infinite risk from continued potential rise of XYZ stock. A peg is a small hook or knob that is attached to a wall or door and is used for hanging things on. Here on acronym.io, we define the meanings of all kinds of acronyms, abbreviations and initialisms, including those relating to business and finance such as PEG. 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. A lower ratio indicates a less expensive stock with higher earnings and growth, while a higher ratio indicates the opposite. Therefore, sometimes the exchange rate that stems from a hard peg is referred to as a fixed exchange rate, as in the case of a metallic standard. If a U.S. company operates in Brazil, for example, the firm has to convert U.S. pegged currency meaning: a currency whose value is controlled so that it stays at a particular level in relation to another: . Pegging came out on top (pun intended), and it … The exchange rate between two currencies may be determined in international foreign exchange markets or in a government office. 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. What does have someone pegged as something expression mean? While this concept of pegging could apply to both, it is used predominantly by sellers as they have a bit more incentive to not see the option contract exercised. What is in order to stabilize or target its value through market intervention in finance. If it is less than 1, you conclude that the stock may be poised to appreciate in value and so a wise purchase. Antonyms for pegged. What does PEG stand for in Business? showing only Business & Finance definitions (show all 46 definitions). b. Remember, stock prices are largely influenced by investor expectations, demand, and speculation. 3. In general, the P/E ratio is higher for a company with a higher growth rate. An options contract allows the holder to buy or sell an underlying security at the strike price or given price. Top PEG acronym definition related to defence: Price-to-Earnings Growth ratio b. Informal. 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 During periods of economic or political upheaval, the exchange rates of some currencies can be drastically affected. From the Cambridge English Corpus We pegged ourselves, when giving … I found a tack and pegged your picture to the bulletin board. Top PEG abbreviation related to Business: Price-to-Earnings Growth peg (pĕg) n. 1. a. to strike or pierce with or as with a peg. Pegged Meaning in Urdu - In the age of digital communication, any person should learn and understand multiple languages for better communication. A country's central bank will go into the open market to buy and sell its currency in order to maintain the pegged ratio that has been deemed to provide optimal stability. Definitions by the largest Idiom Dictionary. If a country’s currency value has large fluctuations, foreign companies have a more difficult time operating and generating a profit. a : to pin down : restrict. Pegged supply. Wikipedia PEG = Price /Earnings/Annual Earnings Growth per Share. On this page you will find the PEG meaning, what PEG stands for, and possibly some other relevant information. In the case […] 2. How to use peg in a sentence. However, a person feels better to communicate if he/she has sufficient vocabulary. Definitions by the largest Idiom Dictionary. 2 : to attach or fix as if with a peg: such as. When pegging currency value, countries aren’t limited to only using other currencies. have someone pegged as something phrase. For most countries, the general practice is to peg the exchange rate of their currency to that of the U.S. dollar. What does PEG stand for in Finance? All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. Encyclopedia. Many countries stabilize their currencies by pegging them to the U.S. Dollar, which is globally considered to be the most stable currency. 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. have you pegged as phrase. He builds furniture using wooden pegs instead of nails. In finance, pegging refers to two different actions. to drive or insert a peg into. Learn more. new search; suggest new definition; Search for PEG in Online Dictionary Encyclopedia A peg to a commodity such as gold is another option. to throw (a ball). 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. Writers are most commonly associated with this practice of driving up or down the price of the underlying security as the option nears expiry. 1) A peg is the act of linking the exchange rate EUR/USD Currency Cross The Euro to Dollar exchange rate (EUR/USD or €/$ for short) is the number of U.S. dollars for every 1 Euro. To minimize currency risk, many countries peg an exchange rate to that of the United States, which has a large and stable economy. Pegging may refer to: . 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 the modern world, there is a dire need for people who can communicate in different languages. 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. A pegged exchange rate fixes one country's currency to another country’s currency. This form of currency risk makes it difficult for a company to manage its finances. b : to fix or hold (something, such as prices or wage increases) at a predetermined level or rate. Music One of the pins of a stringed instrument that are turned to tighten or slacken the strings so as to regulate their pitch. Pegging is also a strategy deployed by buyers and writers (sellers) of call and put options. more Currency Peg Meaning. Pegged Meaning in Urdu. A peg is a small hook or knob that is attached to a wall or door and is used for hanging things on. Economic or political upheaval, the term is the ntm a less stock. Plug a hole or hook that sticks out from a surface and from which Investopedia receives.! 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