2023 July

An investment that produces a smaller return than other similar investments. – A share that underperforms the related stock index (a share that falls below the common run). – A company that performs below the average of its industry (a company if it does worse than the average return of its industry). – An underperforming… read more »

A special form of asset-backed securities in which corporate sales are securitized. This form of financing is particularly widespread in the United Kingdom, where trade chains in particular raise new capital through such asset-backed securities. – Tertiarization. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express… read more »

In general, the former name for any kind of monetary levy on the import and/or sale of foodstuffs that was perceived as onerous; an excise tax. – In particular, also a tax on beverages, which was usually one-tenth of the price of alcoholic beverages sold; such a tax was generally introduced in Austria in 1359…. read more »

The debts of an economic unit (company, household, government) exceed the assets (liabilities exceed the assets). – See deflation, bad, extensum, financial distress, insolvency, default, liquidity, manifestation, phthisis, debt sustainability, public debt, over-consumption, excess of liquidation, indebtedness, insolvency. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without… read more »

Period in which a large number of borrowers terminate loans they have taken out and take out new loans on more favorable terms. This always happens when interest rates have fallen (period in which many borrowers replace old debt with new debt, generally to take advantage of lower interest rates). For banks and building societies,… read more »

Economic entities that do not have an account with a bank (persons not served by a bank). According to estimates in the USA, around 23 million private households had no bank account at the beginning of 2010. The majority were welfare recipients. The social welfare administration has to send them assistance by (cash) check via… read more »

In jargon, for a senior staff member in an institute and generally in an entity, who initiated a new project – mostly related to a controversial and labor-intensive undertaking. However, after the whole thing has started, he takes leave for a vacation or a long business trip, leaving the staff out in the cold. Quite… read more »

The asset underlying a forward contract (the asset upon which a forward contract is based; it can be either a financial asset, e.g. a share, a bond, a treasury bond, a forward contract, currency, a stock index, etc., or a commodity, for example a raw material or mining asset). – See underlying asset, commercials, derivative,… read more »

Macroeconomic disruptions within the euro area are the cause of strong pressure on the common currency and the long persistence of the financial crisis that followed the subprime crisis. This has led to the need for early detection and monitoring of imbalances. Such imbalances regularly result in a loss of competitiveness, high current account deficits… read more »

According to the definition in § 2 of the German “Verordnung zur Konkretisierung des Verbots der Kurs- und Marktmanipulation (KuMaKV)” of November 18, 2003, this includes – all facts and value judgments that are capable of – influencing the investment decision of a reasonable investor with average knowledge of the stock exchange. The aforementioned regulation… read more »