on 2023/07/21 by alex1, []

In contrast to means of payment, a piece of money that is traded – at its respective price for the weight of precious metal or – at its collector’s value. – See coin, numismatics. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor […]

on 2023/07/21 by alex1, []

A possible loss from converting one’s money into one asset or into several assets. Such a risk of loss (risk of losing) always exists, with every kind of investment; it is to be attributed to the circumstance that one transfers in principle by the activity of the investment existing means of payment from the own […]

on 2023/07/21 by alex1, []

Investors noticeably withdraw money from a weak currency and park it in a strong currency. – Before entry into the European Monetary Union, periods of USD weakness were regularly associated with shifts in favor of the DEM. The resulting appreciation of the DEM caused considerable tensions within the European Monetary System, sometimes resulting in a […]

on 2023/07/21 by alex1, []

A bond that allows the investor to choose in which currency he wishes the interest payments and/or the final repayment to be made (bond for which interest payments and/or the final repayment are agreed in a different currency). The terms and conditions of the bond must specify how the conversion rate is determined. – Often […]

on 2023/07/21 by alex1, []

From the issuance of bonds in a currency area and their features, the central bank gains important information for forward-looking monetary policy. The relevant data are therefore monitored by the ECB under the two-pillar principle. – See analysis, monetary, data, soft, key, macroeconomic, money supply, leading indicator, economic indicators, important. – Cf. the annex „Euro […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this is the gross yield on ten-year high-yield government bonds. Central banks monitor bond yields because yield spreads at least help to explain international movements of capital. – See credit default swap spreads, corporate bonds. – Cf. Deutsche Bundesbank Monthly Report of August 2005, p. 37 (overviews EUR/USD since 2003), ECB Monthly […]

on 2023/07/21 by alex1, []

The search for shareholders and proxies to persuade them to vote in unison at a corporation’s annual meeting. This sometimes occurs when a group of shareholders wishes to object to individual presentations by the board of directors (proxy fight may occur if some of the shareholders oppose the corporation’s management). In most recent cases, however, […]

on 2023/07/21 by alex1, []

Interest charged by banks to their borrowers. These must be higher than the deposit interest (credit interest) because, in principle, a bank’s profit lies in the difference between the lending interest and the deposit interest. – See deposit interest, deposit interest, interest, interest margin, interest pass-through. – See the annex entitled „Euro area statistics“ under […]

on 2023/07/21 by alex1, []

Instruction to the broker to execute a buy or sell order on the exchange only if he can buy or sell the specified number of units in their entirety at a specific price (requirement that none of an order be executed unless all of it can be realized completely at a specific price). Partial execution […]

on 2023/07/21 by alex1, []

a committee set up at the beginning of 2013 by the German Federal Financial Supervisory Authority with the purpose of identifying and assessing risks affecting the financial sector as a whole. – See Risk Committee, Risk Control. -Cf. BaFin Annual Report 2012, p. 237 (presentation of the new committee; description of tasks). Attention: The financial […]