on 2023/07/21 by alex1, []

Every human being is subject to the rhythm of nature: he has to sleep, drink and eat repetitively. In the human existence lies an attachment, a compulsive bondage (existential dependence) to the goods. To explain this bondage is not a matter of economics, but of theology or philosophy. – For economics it follows from this […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this refers to the sale of treasury shares in a subsidiary established primarily for this purpose (the selling of treasury shares in a subsidiary; this is often preceded by the actual creation of the subsidiary). According to the 1998 Law on Control and Transparency in the Corporate Sector, companies may acquire a […]

on 2023/07/21 by alex1, []

In contrast to the cumulative fund, a special fund that pays out income to unit holders at certain times. – The Deutsche Bundesbank’s monthly statistical supplement „Capital Market Statistics“ also contains figures on the number of domestic distribution funds, the number of units in circulation and their assets, broken down by various aspects. Attention: The […]

on 2023/07/21 by alex1, []

Financial products that are not traded on the stock exchange, but are settled bilaterally between trader and buyer and, above all, hedge funds. – The main disadvantages of this form of trading are: – the volume of transactions and the prices remain hidden; – the price formation process is not transparent; – there is no […]

on 2023/07/21 by alex1, []

Special form of asset-backed securities, particularly widespread in the USA. Here, banks‘ receivables from car buyers are securitized and sold to a special-purpose entity – often also mixed with receivables from other loans of the originating bank. – See Leasing securities, securitized, Securitization. Attention: The financial encyclopedia is protected by copyright and may only be […]

on 2023/07/21 by alex1, []

Someone buys more options than he sells corresponding contracts because he has corresponding expectations with regard to the underlying asset (a position where someone buys more options relative to the number of sold options; this strategy normally is placed in the expectation of a strong move of the underlying asset). – See Absorption phase, Spread. […]

on 2023/07/21 by alex1, []

As the German supervisory authority, the Federal Financial Supervisory Authority (BaFin) is financed entirely from its own revenues. More than three quarters of this revenue is made up of levy payments from the supervised companies; this is a special levy with the purpose of reimbursing the authority’s expenses. The remainder is accounted for by administrative […]

on 2023/07/21 by alex1, []

A loan in which the final installment of repayment is particularly high. In other words, the bank customer pays relatively low amounts for regular amortization. At the end of the term, however, the remaining amount – sometimes up to half of the loan – is due. – See amortization, balloon, bullet payment, loan, bullet, free […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this refers to an earmarked loan for the purchase of durable consumer goods (such as kitchens, household appliances, consumer electronics, cars) granted by a bank to a private household. – See Abstattungskredit, Barkredit, Blankokredit, Dispositionskredit, Königsberger System, Konsumentenkredit, Kontokorrentkredit, Personalkredit, Privatkredit, Installment, Overdraft, Vorlage. Attention: The financial encyclopedia is protected by copyright […]

on 2023/07/21 by alex1, []

In Germany, capital management companies are generally required to redeem issued share certificates at the market price. However, a company may suspend redemption for a maximum of two years if bank balances (cash at bank) and other liquidity are insufficient to pay the redemption price and ensure proper ongoing management („red alert“). For the first […]