English

Unless otherwise defined, the face value (nominal value) of a bond at the time of its maturity. – In the simple case, this corresponds to the amount of money the issuer received for each…

Committee of twenty-four representatives from academia, the financial industry, the Deutsche Bundesbank, and consumer associations with the aim of advising the Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority) in the performance of its duties.…

In banking terms, the credit commitment of an institution to a customer. – Offer by the central bank to either draw down or park liquidity (central bank money) via channels specified by it. –…

A specialized company or individual that manages fixed assets, in the narrower sense real estate. – An institution that realizes construction projects as an arranger. – See developer, facility management. Attention: The financial encyclopedia…

The fee charged on the entire amount of a loan granted by the bank, consequently also in respect of amounts that may not have been drawn (fee paid on the entire amount of a…

In the narrower sense, services provided for the management – such as cleaning, maintenance, security, repair – of buildings and real estate for the purpose of maintenance of value and enhancement in value. Insofar…

In the older literature, the term used to describe the difference in price on the stock exchange between small items – for example: Nominal value 50 – and large pieces – for example: Nominal…

In financial language, also the – printed or electronically stored – record of all transactions with a customer and thus going beyond a mere bank statement. – See bank customer profile, customasing, divergence, customer…

A special type of credit transaction, namely the commercial acquisition of monetary receivables, usually from companies that have sold goods with payment terms to commercial customers; i.e., receivables pre-financing (a credit transaction whereby a…

The factoring company purchases receivables with the proviso that if the debtor defaults on payment, the contract will be rescinded; in other words, the factoring client – the original creditor – will take the…

If the factor also assumes the default risk (normal situation; rule case), this is real factoring. If, however, no liability (so-called del credere cover) has been agreed, it is referred to as non-genuine factoring.…

If companies make use of the long credit terms granted to their suppliers, the latter may get into a financial squeeze. To avoid this, the factoring company transfers the corresponding amount to the supplier…

The purchase of monetary receivables from goods and services transactions, but in which the debtor is not informed by the previous creditor about the sale of his receivable to a factor. – The danger…

Prefinancing of receivables, especially for small and medium-sized enterprises. – Various factoring companies have specialized in this type of clientele and provide services to export-intensive firms in particular, which – due to country-specific circumstances…

At the ECB, all items on the Eurosystem’s balance sheet that are not EUR-denominated monetary policy instruments. Government deposits and banknotes in circulation are among the most important components of autonomous factors. – See…

In older documents also a fund or treasury for the maintenance of buildings, especially churches (fund for repair, reconstruction and maintenance of church buildings and its furnishings). The person responsible for the maintenance of…

According to prevailing ling case law, the price of a good ex the turer’s warehouse, but excluding any procurement costs such as packaging, transportation, insurance coverage, or customs duties. – See producer prices, industrial,…

A fee paid by an exhibitor to the organizer of a sample fair or trade fair. To this day, this is usually charged in the form of stall money. – In Catholic churches, this…

Stock exchange price of a share calculated by the regulatory authorities in the case of takeovers. As a rule, the weighted average stock market price of the past three months is used. – See…

Under both IAS/IFRS and U.S. GAAP, the fair presentation principle is the overriding accounting principle rather than the conservatism principle. However, the importance of this principle differs under IAS/IFRS and US GAAP. While it…

IAS rules on the measurement and recognition of hedging transactions. – See IAS 39. – Cf. Deutsche Bundesbank Monthly Report of June 2002, p. 48 f., ECB Monthly Report of February 2004, p. 77…

Unless otherwise defined, the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction (in a free market situation). (CONJUNCTIVUS POTENTIALIS). – Transactions…

An opinion given by a third independent party [investment bank, valuation firm, auditors] on the financial terms of a transaction [disposal, contribution, merger] which could create a conflict of interest between the parties to…

A quasi-religious attachment to money, usually related to a single person or a group (an ungodly obsession with the almighty money; the English term taken from the root word monotheism, the part “mono” meaning…

A company tries by all means to increase cash flow and maximize profit in the short term. This was regularly observed when the company has a large market share in a stagnating industry and…

Old fee in Germany – on the death of a decedent (precursor of today’s inheritance tax; death duty) or – on the change of ownership of real estate (precursor of today’s real estate transfer…

Counterfeit monetary signs of all kinds, including cards. – In regulatory language, also said of amounts of domestic currency traded by domestic banks in offshore financial centers. – See banknote value restriction, prudential supervision,…

Popular approach to explaining different returns on equities over time. In contrast to many other calculations, this model assumes a strong weighting of – the market return, – the price-to-book ratio, and – the…

A firm – which is owned entirely or partly by one family, several families or family associations and – the latter have a determining influence on the economic activity of the company based on…

Formerly, in some places, a tax imposed on every private household. In Württemberg, this levy was abolished again by the Hochfürstlich Gnädiges Dekret of April 18, 1739, “because of the many difficulties it caused.…

Companies, regardless of their legal form, which deal with the bank-independent administration of large private assets. – Private family offices manage the assets of individual or several members of a single family. They are…

Equity raised by the owner himself and by persons close to the owner in family businesses and small and medium-sized enterprises. – From a bank’s point of view, the amount of capital raised by…

In the ECB’s statistics, a firm – mostly small businesses, freelancers, and agriculture, and then usually as a A businessman as defined in § 1 of the German Commercial Code (HGB) – in which…

Amount to be paid for a transport service (fare, ticket price) by a means of transport such as the railroad or the (CH: the) streetcar. – Reimbursement of expenses incurred in getting to a…

Sometimes said instead of fare. – In Germany, this refers in particular to the expenses partially reimbursed by health insurance companies (part-paid) for a visit to a doctor or for travel to a place…

Unless otherwise defined, in the case of a bank, the ability of technical equipment to cope with serious malfunctions, especially electricity cuts (blackouts). – Today, computers are required to continue working for a while…

Payment of the charterer (shipper; freighter, consignor) to the shipowner (Verfrachter, Frachtführer, Schiffseigner; shipowner), if – the cargo comes on board after the contractually agreed time, – the utilisation of the ship capacity does…

In stock exchange parlance, securities which are temporarily attracting special interest. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

A temporary or permanent reduction in the tax burden granted to a company or other taxpayer. This inevitably leads to other groups having to pay higher taxes because a given amount of expenditure (a…

A temporary or permanent reduction in the tax burden granted to a company or other taxpayer. This inevitably leads to other groups having to pay higher taxes because a given amount of expenditure (a…

In relation to the financial market, the statement of financial psychology that worry and anxiety about future market developments make investors uncertain and indecisive, so that a financial crisis thereby reinforces itself. – See…

In general, the preliminary examination of the technical and economic feasibility of a project (an investigation into a proposed plan or project to determine whether and how it can be successfully and profitably carried…

In Germany, bonds issued by the Federal Government as well as those of its special funds. The securities have standardized interest and principal maturities (on January 4 and July 4, respectively) and a term…

In the USA, supervisory authority for those regional banks that are not members of the Federal Reserve System. – Founded in 1934, the FDIC ensures uniformity of the rules binding banks in all North…

Former authority for the supervision of insurance companies and building societies based in Berlin. – The authority was incorporated into the Federal Financial Supervisory Authority on May 1, 2002. Attention: The financial encyclopedia is…

The U.S. central banking system established in 1913, to which the twelve Federal Reserve Banks – comparable to the German Landeszentralbanken – are affiliated. The Fed is also the supervisory authority for about one…

Office located in the U.S. at the Federal Reserve Bank of Chicago with the main task of – exploring banks’ business practices, – researching the perceptions of bank management, especially with regard to measures…

In general, the payment for a service that is generally not calculated according to the expenditure of time (time exposure, expenditure of time). – In particular, payment for services rendered by free-lance providers, such…

In older documents, a payment to a service provider who usually stored a private household’s winter clothing in the spring and summer clothing in the fall (mothproof). In most cases, these were companies in…

At some private banks, in the context of asset management, the contractual assurance that the client will not have to pay an advisor’s fee if he or she is not satisfied with the bank’s…

Service providers who advise clients for a fee without also brokering financial instruments. Since November 2007, fee-based advisors have been subject to a licensing requirement. – See Investment advice. – Cf. BaFin Annual Report…

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…

Unless otherwise defined, the fact that investors – cannot process all information and – therefore rely on simple anchoring rules when making decisions. – The obvious anchor is the recent evolution of asset prices,…

A technical term that entered the financial language after 2005 meaning – the failure of a bank can affect a country as a whole and drag it into a downward economic spiral or –…

Generally, buy and sell orders due to (by reason of) changes in market circumstances that have occurred. – In foreign exchange markets, the change in a long position by speculators as a result of…

The share of female employees in the labor force. This share also depends, among other things, on the overall economic situation; it is monitored by the ECB as part of the two-pillar principle. In…

In relation to the financial sector, this refers to the assumption that the proportion of female executives and decision makers will increase in the future. This is because more and more young women are…

In earlier times, a payment to – erect a fence or – maintain an existing fence. The annual contribution for the maintenance of the public fences of a village was also called Gelindegeld; gelinde…

A payment in cash to be made on rivers when persons and vehicles cross by ferry (navigation with a ferry); in older documents also chalance, naulum, nautage, and ripatikum. – In ancient Greece, a…

A series of numbers that begins with 1 and can be continued indefinitely. Each number in the series, starting with one, is the sum of the two preceding numbers. Thus the sequence 1, 2,…

In relation to the financial market, a fictitious purchase transaction, in this case regularly with the intention of price manipulation. – The same applies to fictitious sales. – See crystallization, market activity, fictitious, round…

Property established by private legal transaction that is bound, i.e. basically inalienable, and not mortgageable or indebitable in any form. It is used through time by contractually designated family members one after the other…

A person or entity, appointed to manage the affairs of a company or institution including assets and debts; in older documents and partly until today also called salmann. – In Switzerland, the professional term…

A person or entity, appointed to manage the affairs of a company or institution including assets and debts; in older documents and partly until today also called salmann. – In Switzerland, the professional term…

Generally, an account established at a financial institution in the name of a guardian who acts on behalf of a ward. – In particular, a term deposit received by a domestic bank from a…

Generally, an account held in one’s own name on behalf of a ward (an account established at a financial institution in the name of a guardian who acts on behalf of a ward). –…

A monopolistic sales tactic that frequently occurs in inelastic markets – demand changes little or not at all as the price rises – and also on stock exchanges. – In this case, market participants…

The storage and management of all documents on a single mainframe computer (central file server), which can be accessed by authorized persons from all over the world from their workstations. Particularly in the case…

Customer’s order to the bank or stockbroker to buy a financial product or commodity in a certain quantity. However, if this cannot be done due to market conditions, the order is completely withdrawn (instructing…

A clause on stock exchanges for an order that must be executed immediately or within a designated time period. If this is not possible for the bank or broker, the order is cancelled (a…

In pubs and discos frequented by the young, a one-time payment made upon entry that entitles the holder to purchase as many drinks as he or she wishes; also known in the jargon as…

In older documents, the financial statements of a public treasury. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

The final settlement of a monetary claim, taking into account all payments made up to that point. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

Person or entity to whose ownership a financial product is permanently transferred and who thereby enjoys the rights and obligations associated with the product (the definitive holder of a financial product and recipient of…

In general, the date on which a financial instrument must be fully repaid. – In the case of loans that are contractually repaid in individual installments, the payment date of the last installment. –…

In payment systems, a settlement that is both unconditional and irrevocable and cannot be revoked. – See settlement confirmation, blank, book profit, business continuity programs, clearing house, automatic, closing, definitive purchase, Euroclear, retail payments,…

The study of the revenue and expenditure management of public budgets and the resulting interrelationships with the national economy as a whole. – Finance is conventionally subdivided into financial theory, financial policy, financial history…

In business administration, all measures aimed at creating a balance between cash inflows and outflows in a company in order to ensure liquidity. – In economics, the management of public-sector entities. – The steady…

In older documents – as a noun, – masculine gender, and – used only in the singular form for usury, for deceptive business practice. – See agiotage, Beschores, danism, hollow profit, market abuse, wet…

A company, often in a corporate group, that extends credit but does not accept deposits (company engaged in making loans to individuals or businesses; but unlike a bank, it does not receive deposits from…

Leasing agreement under which all rights and obligations associated with ownership of the leased asset are transferred to the lessee for the term of the agreement. Since December 2008, such service providers have required…

Motto for the fact that countries with well-developed financial systems grow faster than others. In Germany, the financial sector accounted for just over 3.7 percent of value added in 2008, roughly comparable to the…

In the older literature, the observation that companies demand or hold money in their coffers for planned investments. Many of the broad discussions on this subject are hardly relevant today in view of different…

The systematic description of the ways in which private households and businesses raise money, as well as how money is allocated to projects while considering the risk factors associated with them. – As a…

In economic journalism and in politically influenced accusatory literature against the financial system, a common expression referring to opaque financial instruments (allegedly and often not understood by the authors in their mode of operation),…

If the central bank expands the money supply, then under certain circumstances – above all: there are underutilized capacities – this can lead to a revival of the economy as a whole. – The…

A breakdown of the assets and liabilities of the individual economies in a currency area, which is important for assessing the possible effects of monetary policy. – The financial accounts show in detail the…

International anti-money laundering body established in 1989 with the purpose of sharing intelligence on high-risk countries among regulators and informing the public about such non-cooperating countries. The FATF is headquartered in Paris. Advisories from…

According to IAS (7.6), all transactions by a company that affect the extent and composition of its equity items (comprehensive income) and loans. Attention: The financial encyclopedia is protected by copyright and may only…

Person who assists clients with recommendations and suggestions regarding transactions on the financial market, including insurance; see also Section 676 of the German Civil Code (BGB). – A distinction is made between – persons…

Regulatory designation of persons or entities, – who make their account available or allow it to be shared (allow to have access to their bank account), – in exchange for a commission, – in…

In the wake of the subprime crisis, a derisive term for the effort to transform inferior financial products into first-class products – like precious metals in alchemy – through the art of magic. –…

In the case of banks, the examination of – the political and economic environment, including the state of the financial markets (global analysis) and – the industry and the company (industry analysis) in order…

Partly fundamental, partly detailed regulations for the preparation and/or dissemination of financial analyses by institutions. – All natural and legal persons who, in the exercise of their profession or in the course of their…

A person who, in a professional capacity, observes and evaluates events on the financial market in general or, in a narrower sense, evaluates the markets with a view to possible investment decisions (a person…

A term that emerged around 2000 for long data series relating to financial markets. – A healthy distrust of such EX-POST number chains is always advisable, especially since the figures are often derived from…

The constitutional posed system of monetary relations within a state between the individual entities (federal government, states [cantons], municipalities); the revenue/expenditure management of the public authorities and the resulting interrelationships. – The well thought-out,…

If not defined otherwise, the lack of knowledge and insight into what is happening on the financial market. – Experience has shown that people with this characteristic often feel themselves exceedingly called to report…

Unless otherwise defined, this includes all items that contain a claim to future payments (financial claims which entitle the owner to receive a payment, or a series of payments, from an entity). – See…

Long-term receivables held by the company, primarily shares, bonds and participations (all types of securities, bank balances, and insurance contracts; they are long-term non-production investments). – In the case of public corporations, those assets…