In connection with monetary policy, the effect of a central bank policy measure on the value of a company. Rising interest rates generally CETERIS PARIBUS darken the business prospects and therefore also reduce the value of a company. The price of the company’s shares declines, as does the price of its bonds. The value of any collateral is reduced, and with it the possibility of taking out loans. – See accelerator, financial, bear market, cyclical, hedge fund risks, credit risk, value, cyclical.
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.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/