ENG
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Disguised disclosure
on
2023/07/21 by
alex1, []
(Mandatory) announcements distributed by (listed) companies, which – cast in linguistically ambiguous phrases or circumlocutory formulations or (more and more frequently) – are filled with a lot of meaningless talk, enriched with irrelevant statements including plenty of pictures that cleverly distract the reader’s attention (information overload). This is an attempt to cover up unpleasant facts. […]
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Angels, fall (so also said in German; more rarely crashed tops)
on
2023/07/21 by
alex1, []
In the language of the financial world, well-known companies, often enough awarded the highest credit ratings by rating agencies, that crash into bankruptcy overnight, such as the U.S. telecommunications company WorldCom in 2002 (Deutsche Bank alone had to write off a three-digit million amount on its investment in WorldCom) or the year before, the Texas […]
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Anglicisms
on
2023/07/21 by
alex1, []
Borrowings from the English language that have entered the national language. Because the financial world is largely globalized, words and phrases from English understandably accumulate here. If this is repeatedly criticized as a bad habit of the so-called „spirit of the time“ (zeitgeist), this is wrong. Already old merchant language sucked itself full with Italian […]
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Investment opportunity costs
on
2023/07/21 by
alex1, []
Waiting to make an investment decision generates indirect costs. If one is not present in the market, the opportunity to generate a return is lost. – The risk of running into a crash while fully invested can be mitigated by staggering. – See attentism, liquidity preference, opportunity cost, Roosa effect. – Cf. Monthly Report of […]
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Fixed assets, permanent assets, non-current assets; in the case of a company, all tangible assets that are intended to serve business operations on a permanent basis. – In the national accounts, basically all produced and thus reproducible goods that are used repeatedly or permanently in production for more than one year
on
2023/07/21 by
alex1, []
the capital stock; in detail, a number of statistical definitions and delimitations have to be taken into account. – Cf. capital assets fixed assets, balance sheet rule, golden, facility management, trade capital, investment, capital goods, physical capital, tangible assets, assets, asset value, current value. – On physical capital formation, see the annex „Euro area statistics,“ […]
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Bond, secured (secured bond)
on
2023/07/21 by
alex1, []
A debt security that is protected by some means against default and/or delinquency by the issuer. – See bond, asset-backed, bond, unsecured, monetary expansion, monetary union-internal, pledge, collateral, collateralization, real collateral. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, […]
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Bond, cushioned (cushion bond)
on
2023/07/21 by
alex1, []
A bond with an above-market yield and low price volatility. In this case, the terms and conditions of the bond usually include the right of early termination. The issuer will exercise this right if the market interest rate falls below the coupon for a longer period (a callable bond with coupons that are above predominant […]
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Bond, index-linked (inflation-indexed bond; bond bearing interest and paid off in accordance with an index; index-linked bond, de-leveraged bond)
on
2023/07/21 by
alex1, []
Bonds that pay investors according to a formula that is based on a fraction of the increase or decrease in a specified index. – In Germany, such bonds were prohibited by law until the start of monetary union on January 1, 1999; in the U.S.A., too, they have only been permitted since 1977. – In […]
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Bond, callable (hard-call protected bond)
on
2023/07/21 by
alex1, []
A bond which, according to the terms and conditions of the bond, cannot be called by the issuer within fixed time limits. This creates planning security for the bondholder (there is a period of time when the bond cannot be called, no matter what the interest rate is). – See bond, callable, bond, non-callable, redemption […]
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Financial Services Action Plan (also
on
2023/07/21 by
alex1, []
Action Programme Financial Services): Catalog of measures introduced by the EU Commission in May 1999 with the aim of achieving uniform legislation and organization in the Community’s financial services markets. In 2002, the EU Parliament adopted relevant provisions to accelerate the corresponding legislative process. – See financial market integration, European, gold plating, Lamfalussy process, legal […]
