English

Unless otherwise defined, the contractual stipulation in the case of certificates that the purchaser of the certificate will in any case receive back the purchase price for the security at maturity. Of course, in…

In general, the amount of physical capital required to produce a unit of output. In economic terms, it is calculated as the ratio (quotient; division result) of gross fixed assets – roughly: assets intended…

For insurance companies, the ratio of equity to solvency margin, and this risk indicator is calculated roughly as the ratio of the value of equity to the provision for future policy benefits in accordance…

Term from Solvency II, namely the difference between – assets valued in line with the market on the one hand and – liabilities of an insurance company valued in accordance with regulatory requirements on…

In older economics and in Marxist economics, money needed to buy raw materials and supplies (short-lived items that are used in production) and to pay labor, and which flows back to the enterprise after…

In Marxist economics, the means of production, namely the buildings, machines, tools, and materials with which goods are produced. – See capital stock, real capital. Attention: The financial encyclopedia is protected by copyright and…

A sum of money accumulated for the purpose of carrying out a special purpose; in the case of a company, often to finance a takeover. – The equity and debt capital employed in a…

The social assets of an economy. – See infrastructure capital. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

Very broadly defined: all conditions based on human relationships (social interaction) in a company or economy. – See human capital, intangibles. Attention: The financial encyclopedia is protected by copyright and may only be used…

In a company, sometimes referred to as the accumulated profits from business activities that are not distributed to company members or shareholders. – See zero distribution, ranking theory, self-financing. Attention: The financial encyclopedia is…

In Marxist economics, the sums of money used to pay wages and salaries. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

Someone with decision power over capital goods; in this sense, a value-free, objective term of older national economics. – In the Marxist accusatory writings against the marked-based organization of the economy, this term has…

The accrual of interest with compound interest, also called computation of compound interest in older literature. – The calculation of the present value of recurring future payments by discounting (at a given date the…

Unless otherwise defined, the net income (quasi-rents) from an investment calculated by discounting to a reference date. – See present value, capitalized earnings value, net present value. Attention: The financial encyclopedia is protected by…

A money market security with a flexible, but capped interest rate. – The security basically secures a high interest rate for the purchaser, but on the other hand also protects the issuer against an…

A capital management company owned by a bank or financial intermediary, or even operating as an operating unit of a monetary financial institution. – Contrast with the independent fund, which is often managed by…

Large captive insurance company, usually existing as a company with its own legal personality – i.e. not as an operating department – within the group of companies operating worldwide. This insurance company directly assumes…

Insurance companies that belong to another company or to a group. In this case, their business activity consists primarily or exclusively of insuring risks of the dominant entity. – See BaFin Annual Report 2006,…

The assertion that any market regulatory authority will sooner or later be captured by the industry to be supervised and will eventually more or less represent its particular interests. This conjecture is hardly justified…

Fineness designation for gold. Pure gold is called 24 karat; in older literature also called obryzum, obrissum and obrussum (obrussum: finest gold). – A 22-carat gold alloy thus contains 916 thousandths of pure gold,…

A term that emerged around 2005 to describe the fact that – sooner or later, in order to safeguard the quality of life in all countries, limits will be set for carbon dioxide (=…

In general, a data carrier that contains information in a machinable form. – A unit which can be inserted into a machine in general and into a computer in particular and which contains printed…

Stored transaction data for a card account within a period of time. – In the case of on-behalf services performed on behalf of a card-issuing bank, reconciliation with this file takes place prior to…

The agreement of two or more card issuers on various business areas, especially those involving mutual recognition. – In relation to Europe, the proposal to reconcile the fragmented card landscape in order to provide…

Verification in the chip environment of a cash card. The cryptogram is sent to the issuing bank or processor. There, it is compared by the chip with their central file (their authorization system). –…

Illegal transactions related to payment by card. This also includes fraudulent copying and swapping – the real card is retained and a deceptively similar card is returned to the customer – occasionally in connection…

Verification] Code, CVC2 [CVV2] (also used in German; less frequently, card validation): A verification number printed or embossed on credit cards. Its purpose is to limit the use of counterfeit and stolen credit cards.…

In older documents, mostly in the meaning of maintenance payment by a father for an illegitimate child; alimony. – Formerly also used for payments by parents for the accommodation of a son in an…

Prize of EUR 20,000 awarded in January 2014 by the central banks of Germany, Austria and Switzerland for outstanding work in the field of monetary macroeconomics (monetary macro-economics: science is concerned with the effects…

Former payment to the carter (Karrer, Kerner = cart driver, coachman; also called Heinzeler and Wagenmann) for services rendered. – See Fuhrgeld, Frachtgeld, Kaplaken, Mergelgeld. Attention: The financial encyclopedia is protected by copyright and…

The distribution of profits to management – as individuals or as a higher-level, often bank-determined asset management company – at a capital management company. As a rule, a corresponding payment is not distributed until…

Customers take out a loan at a low interest rate with one institution – such as a works savings bank – and deposit the amount at a higher interest rate with another bank; generally…

According to IAS (16.6, 36.5 and more), the monetary amount at which an asset is carried after deducting all accumulated depreciation (amortization) and accumulated impairment losses, i.e. the carrying amount of the asset. –…

According to IAS (16.6, 36.5), the fair value of an asset after taking depreciation into account, i.e. the balance sheet value. – See valuation, carrying amount, fair value, market value, option, fair value, impairment…

In general, the expenses incurred by a business entity to raise debt capital; measured primarily in terms of interest rates. – On commodity exchanges, the expenses incurred in holding a product, primarily storage costs…

Positive or negative net financing costs of holding an asset, excluding any taxes payable. In the case of financial instruments, they consist of the cost of acquisition less interest receivable and dividends. Attention: The…

In commodity futures markets, the stockpile of merchandise from the preceding harvest or production period. – See option, commercial, commodity futures contract. Attention: The financial encyclopedia is protected by copyright and may only be…

In commodity futures markets, the stockpile of merchandise from the preceding harvest or production period. – See option, commercial, commodity futures contract. Attention: The financial encyclopedia is protected by copyright and may only be…

Payment for the transportation of freight from the consignor to the railroad and/or from the railroad to the consignee by a forwarder (CH: Spetter; carrier) or carrier (CH: Camionneur, A: Frächter; haulier). – Coins…

In the past, a one-time payment in money that released from the duty of honorary driving, namely the duty (soccage = labor service) to physically perform certain driving achievements for the beneficiary – usually…

Unless otherwise defined, this refers to the sale of treasury shares in a subsidiary established primarily for this purpose (the selling of treasury shares in a subsidiary; this is often preceded by the actual…

In general, unrest (turbulence; turbulences) in the financial market that follows certain patterns. – See domino effect, herd behavior, credit cycle, crisis, systemic, shock wave. Attention: The financial encyclopedia is protected by copyright and…

Foreign means of payment in the form of coins and paper money – but not also any claims; i.e. also no sight deposits at banks, checks, transfers and bills of exchange – held by…

A register in which all incoming and outgoing amounts from a cash office are entered. – See general ledger, cash account book, memorial, rapiat, strazze. Attention: The financial encyclopedia is protected by copyright and…

The recording of all commercial transactions occurs at the time of payment, and the credit or debit is made in the accounting period in which the payment was received (method of accounting in which…

In the financial market, the purchase of a security now, and at the same time the Sale of a corresponding security at a future date. The necessary balance is financed with a loan (purchase…

In a business, the cash receipts (encashments), usually related to the end of the day (at the close of business). – In the case of a bank, cash on hand in all cash offices,…

Unless otherwise defined, this refers to the accounting principle according to which an entry is only made when an amount of money has been received or debited (accounting method that recognizes revenues and expenses…

A contractually agreed payment in cash – see Frongeld, Gelddarlehn, Zahlungshalber. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

Fixed or variable interest-bearing securities issued by the state or institutions with a term of up to six years. In Germany, they are usually placed with institutional investors. – See government debt, debt, floating.…

The cash burn rate is a measure used primarily by start-ups and early-stage companies to determine the rate at which they are spending (or “burning”) their cash reserves. It’s a measure of negative cash…

A cash card whose use is restricted exclusively to the dispensing of cash at an automated teller machine (automated teller machine, cash dispenser: an electromechanical device that permits authorized users to withdraw banknotes, usually…

sales slip]; panel patient prescription; certificate of training as a cashier: In older documents, the document issued by a bank certifying the deposit of a certain amount of money. – Formerly issued in Germany…

In older literature, mainly the regular closing of entries in the cash book; the final settlement of a cash register. – Date from which payment orders to a cash office – also at a…

Since June 15, 2007, it has been mandatory for travelers entering and leaving the European Union to declare cash – including precious metals – with a value of 10,000 euros or more to the…

The Cash Conversion Cycle (CCC) is a key financial metric that helps a company understand the time it takes to convert its investments in inventory and other resources into cash flows from sales. In…

Unless otherwise defined, the number of (business) days in which a company is able to settle its trade payables with income from the sale of goods or services (cash flow from operating activities; revenues)…

In business transactions, a service rendered by the debtor in return for which an equivalent counter-performance is received directly by the debtor’s assets. Performance and consideration must be linked by contractual agreement. – In…

In financial language, a company or a business line within a company which generates a sustained and high level of operational cash flow, so high that it is responsible for a large amount of…

In the narrower sense, a loan granted by a bank to a customer and paid out in cash on request, sometimes also called a term loan facility. – A loan granted to private households…

Agricultural harvests that are supplied to the market for sale; as distinct from production that is consumed on the farm itself for subsistence or used to feed livestock (crop which is sold for money;…

The flow of notes and coins – from the central bank via banks to consumers and – via retailers back – in some cases also via banks, where the central bank does not have…

Cash that residents (domicilary; nationals) had to deposit interest-free in a special account at the Deutsche Bundesbank if they had taken out loans from non-residents. The amount was calculated as a percentage of the…

Unless otherwise defined, the withdrawal of central bank money via a cash card at an ATM. At the end of 2010, there were around 54,000 ATMs in Germany; around half of the demand for…

Certain payment terms for purchased goods that involve a discount for immediate payment (an incentive offered by the seller to encourage the buyer to pay within a stipulated time). The formula: “2 percent discount…

Certain payment terms for purchased goods that involve a discount for immediate payment (an incentive offered by the seller to encourage the buyer to pay within a stipulated time). The formula: “2 percent discount…

automated teller machine, ATM; teller = [in American English] cashier and [popularly in the USA] money puker as well as money pump): An electromechanical device that enables self-servicing cash dispensing with use of a…

A lockable metal container for transporting cash; usually for deposit at the close of business in a device structurally inserted from the outside at an institution for this purpose. – A sizable donation to…

A procedure introduced by the Deutsche Bundesbank in 2007 for the electronic exchange of data in the context of cash transactions. It covers the submission of deposit slips and cash orders to the Bundesbank.…

In relation to a company, the net inflow of cash – i.e. revenue from sales and other current business activity less all costs – within an economic period (the cash that goes into [cash…

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business. It’s a key indicator of a company’s financial health, as it shows the company’s ability…

Unless explicitly defined otherwise – the net inflow of money, more specifically revenue from sales and other current activities less all costs, – into a company – within a given economic period. – Cash…

If interest rates rise, the interest income of creditors will also rise. If, on the other hand, interest rates fall, borrowers will have more money available for consumption purposes. However, since it has been…

In regulatory language, the amounts generated from a company’s operating activities. This does not include all cash inflows, for example, not profits from any securities invested as a reserve cushion (the figure is calculated…

Hedging transactions aimed at hedging future cash flows from an underlying transaction. Special accounting rules have been issued by the regulatory authorities for such contracts. – See hedge transaction, fair value hedge. – Cf.…

Unless otherwise defined, the reporting of a company’s cash flows and cash holdings on an accrual basis. The most important objective is to provide information on – how the company has generated financial resources…

Unless otherwise defined, the ratio of cash inflows from operating activities, operating cash flow, to a company’s total assets. – See cash flow. – Cf. ECB Monthly Bulletin, April 2008, p. 71 (overview of…

Especially during the inflationary period after World War I (1914 to 1918) in Germany and Austria, as well as in the other four states affected by hyperinflation (Hungary, Poland, Russia, Romania), proof of payment…

In older documents, the stock – of an institution or company – of cash and the stock of precious metal. – See cash. Attention: The financial encyclopedia is protected by copyright and may only…

Service providers who, on behalf of others, especially banks, retail chains – CH: wholesale distributors; trade chains – and major event organizers, – undertake the counting and sorting of coins and paper money, –…

In general, any kind of transfer of money for the purpose of strengthening the financial power of the recipient. – The transfer of money to private households, companies or states that are in an…

When a company is founded, the share paid in the form of cash; in contrast to the contribution of assets, such as a building, machinery or patents. – Margin cover, namely, in the case…

Popular saying meaning that – ultimately, only a permanent, constant cash flow can be the basis of a healthy company or that – it is always advantageous for a company to have access to…

The central bank’s cash management activities, which are costly – at the Deutsche Bundesbank, this area accounted for around sixty percent of costs in 2009 – and do not generate any income. This also…

The planned securing of liquidity in a company as part of financial planning. – The processing of a company’s payment transactions by a bank, regulated by contract. The aim of a corresponding agreement is…

In commodity markets, and especially in the gold market, a common term for the percentage of central bank money – usually thirty-five percent – that must be deposited in a futures contract – usually…

In older literature, a notebook kept in chronological order that records deposits into and withdrawals from a cash register, initially in the course of business, before these are then transferred to the cash book…

In connection with company takeovers, the offer – CH: the tender offer – to the owners (shareholders, partners) to compensate them with a cash payment. This form is contrasted with the share swap takeover,…

At a company, the sum of cash on hand (cash at balance) plus demand deposits at banks. – Cash ensures the company’s immediate solvency, but generally earns little interest. In any case, cash liquidity…

In connection with the budgetary management of public bodies and also sometimes in companies, the declaration by which an authorized person initiates a payment after establishing its factual correctness. – An earlier form of…

Money which, up to a certain amount, can be paid out at the checkout counter of some (grocery) stores and gas stations by the customer using a card. – In older documents, an amount…

Unless otherwise defined, the contractual prohibition on the part of the card-issuing bank – to grant discounts to cash payers – here in the sense of immediate settlement of the debt by legal tender…

In the narrow sense, the immediate settlement of a debt by means of cash, i.e. banknotes or coins. – In a broader sense, the term “cash payment” also includes the handing over of a…

Unless otherwise defined, cash pooling is the balancing of cash holdings within a corporate group. At the end of the day, these are transferred from the accounts of the group companies to a joint…

The statistical recording of a payment when the amount is received. In the balance of payments, this principle is applied to dividends and direct investment. – See accrual principle. – Cf. Deutsche Bundesbank Monthly…

Special banking services provided to customers, in particular – exchange of large amounts of coins, – procurement of unusually high amounts of cash without prior notice, – dispensing of coin rolls at the counter…

In Germany, cash accounted for 57.9 percent of the value of transactions in 2009 (according to Deutsche Bundesbank surveys), with cards accounting for the remainder. – If the shares are related to the volume…

In older documents, the amount at which a foreign currency (coin, bill of exchange) is valued when it is entered in the cash book. As a rule, the cash rate was agreed upon in…

At the ECB, the ratio of cash in circulation to GDP. Apart from special factors, this ratio has remained fairly stable in the developed economies over the decades, despite rising GDP. This is mainly…

Unless otherwise defined, the ratio of a company’s cash and cash equivalents to its assets, sometimes also based on total assets. – This ratio is strikingly high for microenterprises (mircoenterprises: understood here as companies…