on 2023/07/21 by alex1, []

Said in connection with a central bank’s reserve requirement policy. For a central bank to keep the overnight rate under control, there must be sufficient demand for deposits (credit balances) at the central bank. This demand is forcibly created through the medium of the fractional reserve. Because the demand thus created is stable and predictable, […]

on 2023/07/21 by alex1, []

In Germany, Section 20a of the German Securities Trading Act (WpHG) prohibits the provision of incorrect information about circumstances that are material to the valuation of assets. Nor may circumstances relevant to valuation be concealed if there is a corresponding legal obligation to disclose. The prohibition applies to all assets (securities, derivatives, money market instruments, […]

on 2023/07/21 by alex1, []

The payment to the owner of a ship (in a broader sense sometimes also said of other property) from a neutral state as compensation for seizure by a belligerent power. – According to the prevailing opinion in international law, such compulsory expropriations are still permitted today. Attention: The financial encyclopedia is protected by copyright and […]

on 2023/07/21 by alex1, []

With regard to the European Monetary Union, the view, often put forward but unproven because it cannot be demonstrated, that a common currency would set in motion automatic forces for economic convergence among the participating countries. Because fiscal policy and most other important policy areas remain in the national decision-making power of the participating countries, […]

on 2023/07/21 by alex1, []

As defined by the supervisory authorities, the provision of personal recommendations to a client either at the client’s request or on the initiative of the investment firm, relating to one or more transactions in financial instruments. In Germany, such service providers require a license and are subject to supervision by the Federal Financial Supervisory Authority; […]

on 2023/07/21 by alex1, []

The allocation (monitored on an ongoing basis) of a portfolio or the assets of an investment management company according to – different types of investments (such as equity investments, financial instruments, real estate, precious metals) – different maturities, – different currency areas, or – geographic regions in order to limit risks. – See investment committee, […]

on 2023/07/21 by alex1, []

(Large) investors find too few (normal, healthy) offers on the financial market and as a result turn to more fraught with risks; their risk appetite increases and with it the risk of suffering losses from such pick-ups. – See Wait-and-see attitude, Attentism, Megamania, Risk capital, Piece deprivation. Attention: The financial encyclopedia is protected by copyright […]

on 2023/07/21 by alex1, []

Generally, the ranking of an asset, which varies from one asset to another, to serve as a safe investment of stable value or to stand out as an investment. – A security that has generally been rated by rating agencies as suitable for investment. – See investment committee, investment risk, income pursuit, monetary value, investment, […]

on 2023/07/21 by alex1, []

The – bringing together of partners or even just – the proof of transactions concerning the acquisition and sale of securities, money market instruments or derivatives. In Germany, the relevant services are subject to licensing, and relevant firms are subject to supervision by the Federal Financial Supervisory Authority. – See agent, tied, investment advice, broker, […]

on 2023/07/21 by alex1, []

Unless otherwise defined, asset management is the acquisition and sale of financial instruments for an investment community consisting of natural persons with the aim of enabling investors to participate in the performance of the securities acquired. Such services have been subject to licensing since 2009. – See investment model, collective. – Cf. BaFin Annual Report […]