on 2023/07/21 by alex1, []

The central bank’s unauthorized actions, i.e. actions that are not covered at all or at most only marginally by its statutes. – In the slipstream of the turmoil surrounding subprime crisis and leading into a global financial crisis in the summer of 2007, central banks were the only institution that could act quickly and save […]

on 2023/07/21 by alex1, []

In the case of a company and thus also its issued shares, a special appreciation due to special advantages not attributed (to this extent) to other companies (all features that makes a company and by this its shares more attractive or valuable to investors). The plus points in detail depend on – the respective industry […]

on 2023/07/21 by alex1, []

Generally, the removal of a legal obligation by law (such as: peasant relief; abolition of serfdom) or by payment in money, as in easements. – The replacement of an existing loan with a new one, usually on different terms (the renegotiating of the terms of a loan, usually reducing payments by extending them over time […]

on 2023/07/21 by alex1, []

Directive drawn up by the EU Commission in 2006 to standardize the form and content of audits of companies‘ financial statements throughout the EU. The directive was implemented in the member states by 2008. – Since then, a number of proposals for additions and improvements have been put forward. At the end of November 2011, […]

on 2023/07/21 by alex1, []

Unless otherwise defined, the ratio showing how many options are required in relation to the number of underlying assets to hedge against expected price changes in the underlying asset (the number of contracts required to hedge one contract’s value of the underlying asset). – See hedge, expectations, option, certificate. Attention: The financial encyclopedia is protected […]

on 2023/07/21 by alex1, []

A central bank provides liquidity to banks; however, it does so at a price (far) above the highest interest rate on the credit market. It thus makes clear its intention to restrict the money supply. – See money market operations. Attention: The financial encyclopedia is protected by copyright and may only be used for private […]

on 2023/07/21 by alex1, []

In mortgage financing between a bank and a customer, a third party (such as the government under the homeownership promotion policy) provides subsidies during the early period to limit the monthly burden on the mortgagor (mortgages in which monthly payments consist of principal and interest, with portions of these payments during the early period of […]

on 2023/07/21 by alex1, []

First great depression in the U.S. in 1819, which had a favorable effect on the hitherto rather neglected theory of the business cycle; however, many of the ideas put forward at the time were not taken up by economic theory until 100 years later. At the time, most believed that free trade was the main […]

on 2023/07/21 by alex1, []

In finance, an advertising letter (ad mail) with the purpose of attracting attention to an institution’s services; usually used as a lead-up to a subsequent call or visit and often accompanied by a lure (bait; appetiser). – See after-sales service, accessibility, call announcement, relationship management, call center, canvassing, cold calling, cheesemaking, customer defense service, mail […]

on 2023/07/21 by alex1, []

A monetary aggregate is defined by the ECB as the sum of currency in circulation plus those outstanding liabilities of monetary financial institutions that have a high degree of money or liquidity in the broad sense. – According to the Eurosystem’s definition, broad money M3 includes, in addition to currency in circulation, the following liabilities […]