Univ.-Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.In terms of maintaining a portfolio, the attempt to sell components that are currently very highly valued due to special circumstances and to use the proceeds to add instantaneously undervalued (it is assumed that these assets are generally valued too negatively) assets to the portfolio. – See analysis, technical, arbitrage, statistical, valuation, Bollinger Bands, bottom-up… read more »
Prohibition imposed by the supervisory authority and usually also publicly announced – of the activities of persons or companies on the financial market as a whole or in individual sectors or – of mergers and acquisitions that do not comply with the statutory provisions. – In Germany, a prohibition as defined in Section 37 of… read more »
Econometric simulation of all effects of interest rate changes, first on the money market and then on other economic variables. The aim is to obtain reliable impulse-response functions from which the likely impact of a central bank policy measure can be determined in advance. – See book credit, key data, macroeconomic, equilibrium models, dynamic-stochastic, models,… 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 »
A provision in contracts that specifies the relationship between a company’s own currency and one or more foreign currencies. This is intended to exclude the risk, which experience has shown to be not insignificant, of the depreciation of one of the currencies involved; value date = here: foreign means of payment. – See bond, currency-selectable,… 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 »
In relation to the financial market, a statistical measure of the risk of a particular individual investment or portfolio. It is roughly calculated from the deviation of the individual respective returns from the average return – calculated according to various approaches – within a given period. High variance means high risk (a statistical tool measuring… 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 »
A hedge fund that chiefly sells shares and bonds of companies with a momentarily high quotation and buys shares and bonds that are considered to be undervalued in price (a hedge fund that chiefly sells shares and bonds of companies with a momentarily high quotation and buys shares and bonds that are considered to be… read more »
In statistics, the ratio of vacancies to the labor force. – See unemployment rate, two-pillar principle. – Cf. ECB Monthly Bulletin of February 2002, pp. 33 f. (information content of the vacancy rate for monetary policy), ECB Monthly Bulletin of October 2010, pp. 52 f. (time series for the vacancy rate in the euro area)…. read more »