Dictionary of Finance and Investment Terms: EAFE
EAFE
acronym for the Europe and Australasia, Far East Equity index, calculated by the Morgan Stanley Capital International (MSCI) group. EAFE is composed of stocks screened for liquidity, cross-ownership, and industry representation. Stocks are selected by MSCI's analysts in Geneva. The index acts as a benchmark for managers of international stock portfolios. There are financial futures and options contracts based on EAFE.
