Univ.-Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.According to Article 1 No. 26 of Directive 2000/12/EC of the Parliament and of the Council of the European Community of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions, a “close link” is a situation in which two or more natural or legal persons are linked by:… read more »
Term used primarily in connection with certain tradable financial instruments. Banks bundle a large number of issued loans into a portfolio. This is then broken down into individual tranches; usually into three, not necessarily equal parts. – The lowest, relatively high-interest tranche (first-loss piece, also known as equity tranche) must fully bear (absorb) the loss… read more »
With regard to the financial market, hosted for the first time in October 2009 by the German Federal Financial Supervisory Authority and attended by around 200 experts, an event on consumer protection regulations in the area of financial services. – See Consumer Advisory Council, Consumer Complaints. – Cf. BaFin’s 2009 Annual Report, p. 243 (a… read more »
A set of rules, particularly for stock corporations in the U.S., which sets out certain rules of conduct for the management board and supervisory board members. According to this code, managers and supervisory board members must make declarations at certain intervals, for example on the (sale) purchase of shares. It may be difficult or impossible… read more »
Old unit of weight that persisted to some extent in Germany until beyond metrication in 1870. Its weight varied widely from place to place, ranging from about 27 to 100 grams. – The troy ounce (fine ounce) with 31.1034768 grams is still often used as a basis for the gold price today, although the ounce… read more »
A term frequently used in statistics to refer to remittances (the sending of money chiefly by migrant workers to their families at a distance). 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…. read more »
In financial terminology, anything that cannot be supplied to the market (something that may not be sold, transferred or assigned to another). – See Fideïkommiss. 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,… read more »
In older financial terminology, often used for collateral in the sense of depositing an asset in order to increase the probability that a creditor of a claim will also be repaid the claim together with interest. – See loan, secured, pledge, pledge money, security, security deposit, security money, underlay. Attention: The financial encyclopedia is protected… read more »
In Germany today, this term usually refers only to private schools and, more rarely, to universities (tuition fees). In older documents, fees for schools are also called instruction fees. – See Beleggeld, Fremdenschulgeld, Hörergeld, Mofageld, Oppidanengeld, Schreibschulgeld. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express… read more »
In the jargon of a call option, when the price of the underlying asset on the spot market is below the strike price, in other words the option is out of the money (a call option whose strike price is greater than the market price of the underlying asset). – With respect to a loan,… read more »