July 2023 - Page 24 of 823 - Dr. Gerhard Merk

In stock exchange parlance, a buy or sell transacted at a more favorable price than an immediately preceding transaction in the same security (an exchange transaction in which a buy or sell of a security occurs at a price higher than the previous trade). Attention: The financial encyclopedia is protected by copyright and may only… read more »

The production potential of an economy is partially idle. Whether monetary policy can change this situation is difficult to answer in general terms, especially since the causes of underutilization can be very different. – See potential labor force, capacity utilization rate, female employment rate, infrastructure, capacity utilization, Phillips theorem, potential growth, output gap, Say’s law,… 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 »

The business operated by a cooperative (a cooperative: an autonomous association of persons united on their own accord to meet their mutual economic goals through jointly owned and democratically controlled enterprise). – See union bank, credit unions, people’s bank. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes… read more »

Possible loss of a position or a portfolio – during a certain period (= risk horizon), which – with a previously defined probability (= confidence level) – will not be exceeded (an investor’s maximum potential loss on the value of an asset or a portfolio of financial assets and liabilities, based on the investment timeframe… read more »

In the variable rate tender procedure – as introduced in the Eurosystem since 2000 – the fact that the bids submitted by banks in aggregate fall short of the allotment amount provided by the ECB. As a result, banks run the risk of having insufficient liquidity at the end of the reserve maintenance period. In… read more »

Under the German Prospectus Act, anyone wishing to list securities on the regulated market segment of the German stock exchange must submit a disclosure of all the company’s important circumstances in a form and content specified and controlled by the supervisory authorities. – See listing prospectus, ad hoc notification, offering prospectus, enforcement, financial report, prospectus… 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 »

Means of payment in foreign currency. – Value of the money of a country or currency community such as the euro area in relation to the value of the money of other countries. – In the case of a bank, the value date on which a movement is posted to a bank customer’s account. –… read more »