Univ.-Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.Blocking of turnover on the stock exchange in Neuyork if the Dow Jones stock index rises by more than fifty points within a short period of time. – This restriction is intended to prevent computer-controlled buy programs, which trigger corresponding buy signals in fractions of a second, from causing a rocket-like increase in demand after… read more »
Another term for foreign exchange, hence all means of payment in the hands of non-residents. – In a narrower sense, only foreign banknotes and coins. 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 old documents, this refers to the difference between the loan to the debtor – in good, stable money – and the repayment in money that has since lost its purchasing power. Corresponding documents from earlier times, which have come down to us in abundance, are invaluable for economic history and especially for monetary history…. read more »
Generally, the determination of the degree of accuracy and exactness of a measuring device. – In particular, the regular review of rating systems used internally by banks to determine the credit risk of individual borrowers, required by Basel II. – See calibration, rating, risk profile, discriminatory power. – Cf. Deutsche Bundesbank Monthly Report of September… 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 document to be filled in and kept with an institution when opening a business. It contains the specimen signature of the customer and any potential authorized document signers and, if applicable, their power of disposal (the card or electronic representation on file at a financial institution that contains the signature of the customer and… read more »
Special type of asset-backed securities, a non-significant proportion of which are now privately placed in the euro area. These are securities issued by special purpose vehicles, where the special purpose vehicle in turn has bonds issued by corporations or banks [collateralized bond obligation] or bank loans [collateralized loan obligation] in its portfolio (debt securities issued… read more »
Fixed-interest securities issued by large companies with the capacity to issue them. Their price usually closely follows the share price of the respective issuer. The term ranges from three to thirty years. In Germany, corporate bonds accounted for a total of only six percent of gross domestic product in 2005, compared with around twenty percent… read more »
Goods and services which – to the individual and – thus always also to society – cause harm now, i.e. immediately – or later, after some time. – However, it is completely wrong to include money among the bads, as is often done. For money is a certificate of entitlement to goods of every kind;… 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 »