English

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 »

In general, the custom in trade, the trade practice, trade usage – at a certain trading place or – in a certain trade sector. – Usages in the financial market must always be observed where and when there are no corresponding clear legal provisions; as well as where exceptions – such as the use of… read more »

In the U.S., a special form of special purpose entity governed by law (FIN 46). In more detail, it is – a legally autonomous economic entity whose equity provider – is not considered the main risk carrier or – cannot exercise a controlling influence under the articles of association despite holding a majority of voting… read more »

As defined by the ECB – external positions of systemically important economies, – reflecting distortions – such as: persistent deficit in the balance of payments – or – posing risks to the global economy. Risks are primarily potential dislocations in financial markets following an unexpected shock, but also increasing protectionism – See event risk, financial… 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 general, the possibility that the actual return from an investment may exceed expectations upside (the possibility that the value of an engagement may increase beyond forecast level). Any engagement in the financial market involves the possibility of downside risk and upside risk. – For a borrower, the risk that the market interest rate will… read more »

A provision in contracts that specifies the relationship between a company’s own currency and one or more foreign currencies. This is intended to exclude the risk, which experience has shown to be not insignificant, of the depreciation of one of the currencies involved; value date = here: foreign means of payment. – See bond, currency-selectable,… read more »

A term for costs that is now frowned upon in economics, but is still very common in older literature and in some cases also in colloquial language. – The occurrence of extraordinarily high costs that were not foreseen to this extent. The prefix “Un-” is used here not for negation, but for intensification (as in… read more »

The fact that within a society – and especially in developing countries – people in the lowest income bracket often rise to the average income level only after several, usually five, generations. This is explained in detail in sociology for various reasons. – However, it cannot be the task of monetary policy to create improvements… read more »

A company exclusively dedicated to the acquisition, holding, management and sale of venture capital investments, in the form of shares, shares in a limited liability company, limited partnership shares, participation as a general partner or as a silent partner. Via and through the holding company, access to the financial markets is to be opened indirectly… read more »