on 2023/07/21 by alex1, []

In general, according to this basic rule, business transactions are always recognized in the period to which they are attributable and reported in the period-end financial statements (balance sheet). In other words, they are always recognized as expenses or income in the accounting period in which the consumption of value or increase in value occurs […]

on 2023/07/21 by alex1, []

In a credit relation in general, the risk that a debtor may no longer be able to meet its obligations to the creditor – for example, due to insolvency. – From a bank’s point of view, this risk is generally all the more dangerous the higher the concentration of counterparties is to be assessed, i.e. […]

on 2023/07/21 by alex1, []

With regard to the foreign branches of domestic banks, the fact that smaller institutions prefer to establish themselves where a larger domestic bank already has a foothold. This is explained by the fact that the costs of information search with regard to the nature of a location are reduced in this way. – In connection […]

on 2023/07/21 by alex1, []

Often used in older financial language for – an agreement in the sense of a bargain between market participants, – a contract. – See chord, contract, concert. 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. […]

on 2023/07/21 by alex1, []

A term used on the stock exchange to describe all shares in companies whose earnings have been subject to conspicuous fluctuations (oscillations: movements above and below a mean value) within short periods of time. As a rule, this is due to correspondingly strong sales fluctuations, caused above all by economic waves, unfavorable exchange rates or […]

on 2023/07/21 by alex1, []

Portfolio that contains both an option to buy and sell a very specific stock for risk mitigation purposes. – See butterfly spread, call, option, commodity futures contract, straddle, strangle. 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. […]

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 […]