on 2023/07/21 by alex1, []

A description of how investors in the form of households, companies and institutions invest money, in the form of – theoretical models that show how this could be done in the best possible way with regard to selected variables (e.g. return, security) or – empirical studies that reveal how investors actually decided on the basis […]

on 2023/07/21 by alex1, []

The bond issued by a joint-stock company in which, in addition to interest, the investor is promised a share in the company’s profit if it exceeds a rate specified in the terms of the bond. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University […]

on 2023/07/21 by alex1, []

Unless otherwise defined on the financial market, the date on which an agreed transaction is settled in terms of payment. This is usually the second day after the trade date. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., […]

on 2023/07/21 by alex1, []

The risk that a general deleveraging process will put overall asset prices under pressure. This reduces the fair value of the assets reported in the balance sheet and equity declines. In the course of Basel III, institutions must take this risk into account; specific rules for calculating it have not yet been issued. – See […]

on 2023/07/21 by alex1, []

Measure used to assess stability in the financial market. The measure is more precisely the number of standard deviations of the asset value from the default threshold (defined as the point at which the value of a bank’s assets exactly equals the value of its liabilities, i.e. its equity is zero). The measure is determined […]

on 2023/07/21 by alex1, []

Term incorporated into regulatory language after 2010. It refers to the precautions taken in the event that a systemic bank becomes distressed. In principle, resolution should take place in such a way that – threats to financial stability are averted, – retail investors are protected, and – any losses are not borne by the state. […]

on 2023/07/21 by alex1, []

In financial terminology, generally the substantiated lowering of a sum expressed in monetary terms. – The withdrawal from a transaction, the withdrawal from a commitment or even from a country. – In particular, also the termination of deposits with an individual bank or the institutions as a whole (run). – See discount, markdown, deduction, discount, […]

on 2023/07/21 by alex1, []

) Interest day count in which the actual number of calendar days and the year is calculated as 365 days. – Actual/360 is based on the year with 360 days. – See Accrual principle, Effective interest rate, Eurointerest method, Interest day count. Attention: The financial encyclopedia is protected by copyright and may only be used […]

on 2023/07/21 by alex1, []

Unless otherwise defined, an expert who provides expert advice on a fee basis to the decision-makers of a capital management company, i.e. the fund management, – on investments in specific markets, regions or financial products, and – on domestic and foreign tax matters (tax adviser) and legal matters (legal adviser). – See investment committee, asset-liability […]

on 2023/07/21 by alex1, []

Bonds that are redeemable at a premium on draw or call. Certain corporate bonds in particular are redeemable at such a premium. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: […]