on 2023/07/21 by alex1, []

The withdrawal from an engagement and, as a rule, also the liquidation of the corresponding assets, also called recess in older documents. – The abandonment of a business area at an institution. – At the central bank, the changeover of monetary policy from a phase of ample liquidity provision (quantitative easing) to normal market management, […]

on 2023/07/21 by alex1, []

Generally, a loan granted by someone – usually a bank, but sometimes other companies, such as a corporate parent – by assuming a surety or providing a guarantee. This means that the bank does not provide liquid funds, but rather its own creditworthiness or a parent company’s good name (place in public esteem). – In […]

on 2023/07/21 by alex1, []

In older financial language, payment as compensation to someone who renounces something (money given to a resignee: a person who has resigned or is about to resign). – A rollover sum when trading in lump sum (buying in the lump; quantity purchase). In this case, a stock of goods is assessed and paid for on […]

on 2023/07/21 by alex1, []

The futures price of a commodity on the commodity futures market is below the spot price; the opposite (i.e., the spot price is above the futures price) is called contango. Backwardation is unfrequent for a persishable commodity that has a cost of carry, so grains such as corn and wheat, and sugar, are at the […]

on 2023/07/21 by alex1, []

On commodity exchanges – the purchase of a put option with a high strike price and – simultaneous sale of a put option with a lower strike price. Here, the market participant expects falling prices for the product underlying the contract. – See commodity fund, bull spread, option, commodity futures contract, speculation, futures speculator, time […]

on 2023/07/21 by alex1, []

The result of one engagement or a series of transactions that end in a zero net sum gain. This, for example, may be the result of a loss on one investment and a gain on another, or it could be the result of buying and selling the share of a single company, or in similar […]

on 2023/07/21 by alex1, []

Bank that offers its services both – in walk-in premises (brick [= brick] and mortar [= mortar] bank) – and with basically the same range of services on the Internet (transactional website). – See Internet bank, moonlight banking, multi-channel bank, online banking. Attention: The financial encyclopedia is protected by copyright and may only be used […]

on 2023/07/21 by alex1, []

In credit insurance, an agreement under which the insurance covers the risks insured during the policy period even if the credit event, i.e., the claim, does not occur until after the end of the policy period. – See bid limit, probability of default, credit risk, borrowing power, default, collection, factoring, franchise, credit, nonperforming, line of […]

on 2023/07/21 by alex1, []

Cash deposits of German citizens at foreign banks. These are not protected by German deposit insurance systems, not even for small investors. In the event of nationalization or even state bankruptcy, the sums deposited with a foreign bank are generally lost. – See Deposit Insurance, Icelandic Bank Trap, Repatriation Effect. Attention: The financial encyclopedia is […]

on 2023/07/21 by alex1, []

In statistics, a technical term for firms in the home country that are controlled by a foreign company. For a more precise knowledge of globalization, it is important to record the relationships between these units. Special reporting requirements have therefore been introduced at European level since 2007. – With regard to Germany, a distinction is […]