English

In some cases, these are finely tuned game contracts relating to the future prices of individual securities or indices. Corresponding providers of such transactions engage in investment brokerage and require a license. – See…

Money that appears as supply or demand on the financial market. – Cash used to acquire assets such as land, buildings or exploitation rights. – The money invested in financial instruments of an economic…

London financial center) or – an entire country (Switzerland financial center). – See banking secrecy, bank ford, banking center, city banks, financial industry, financial island, corporate oasis, capital movements, international, offshore financial center, place,…

In general, the outstanding national or international importance of a location – such as New York, London, Frankfurt, Bombay or Zurich – for the supply of and demand for financial services. Market participants have…

Generally, the ill-considered use of money in costly, uneconomical – the output achieved is grossly disproportionate to the costs incurred – projects. In relation to the financial market, this includes the countless official committees,…

The acquisition and sale of securities, money market instruments or derivatives in one’s own name for the account of third parties. In Germany, such companies are subject to supervision by the German Federal Financial…

A company which, alone or as part of a group – and in this case a group sometimes consists of more than a thousand legally independent subsidiaries – offers a full range of financial…

Generally, any contract that gives both parties mutual unconditional or conditional rights to immediate and/or subsequent payment. – A subform is the insurance contract. Here, one party (insurer, insurance underwriter) promises a later payment…

Said primarily in connection with leveraged buyouts of loan agreements that contain special provisions to protect creditors. For example, the target company must generally comply with very specific balance sheet ratios that can be…

Ten-member committee set up in the USA at the end of December 2009 – five members from the Senate (state chamber), five from the House of Representatives (representation of the people) – with the…

Proposal introduced in the USA at the beginning of 2010 to impose a special tax on all banks. It was right and proper because the financial sector had been saved from collapse by taxpayers’…

Studies seem to show that financial crises are to a certain extent inherent in the market economy system. They are seen by many as the Achilles heel (the only place where the Greek mythical…

Contrary to repeated statements to the contrary, the global financial crisis that followed the subprime crisis in 2007 largely bypassed the man in the street. On the other hand, many wealthy individuals who had…

In general, financial instruments that are linked to – a specific other financial instrument, – a specific indicator or – a specific commodity and – whose purpose is to trade financial risks on financial…

Financial distress occurs when a household or a firm cannot meet its obligations of repayment. – If a company is no longer able to meet its debt obligations punctually, this is usually a precursor…

In the case of an entity, the difficulties typically preceding insolvency; first and foremost – still being able to pay full wages and salaries and – meeting all payment obligations to banks and business…

The professional, careful, and responsible management of money in any entity. – See bankist, depeculation, financial sodomite, misappropriation, embezzlement. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

The prohibition imposed by a government or international authority on conducting monetary transactions with nationals of a particular country (official decree forbidding financial transactions with another country). – See Cash Control, Observation Note, Financial…

A process in which several financial products are selected in whole or in part and coupled together in such a way that they meet the very specific concerns and goals of an investor or…

The calculation of expenses and income prior to a transaction or investment – The planning (detailed to a daily level) of liquidity in terms of solvency. – See financial requirements. Attention: The financial encyclopedia…

In German legal terminology, firms that are not institutions but engage in certain financial market transactions enumerated in the law, primarily cash handling, acquisition of equity interests, factoring, leasing, credit card issuance, trading in…

A person who is deficient in understanding the mechanism of the financial system, but thinks to know and comprehend all coherences very well and much better than all professionals in the financial industry, all…

In the meantime worldwide almost innumerable platforms in the Internet, in which – messages are exchanged regarding the financial market and – above all also investment recommendations are expressed as well as in certain…

Standardized, legally binding contract (futures contract) for the purchase or sale of all types of securities as well as currencies or price indices (contracts based on financial instruments such as treasury bonds, CDs and…

Disparaging term for speculators; widespread and deeply ingrained among German intellectuals (teutonic intellectuals: a special type of persons with whom the Teutonie was and is penalized abundantly) as well as in German media. It…

Biting term for a person who digs for money, as it were, by entering into personal relationships with wealthy people in order to obtain their funds (a woman or a man who – so…

The presentation of the financial management of public entities through the ages. Its importance lies in the fact that today’s income-expenditure economy of the state is often hardly understandable without knowledge of its development…

Unless otherwise defined, ignorance of how money works among the general population. According to surveys in 2014, Colombia is at the top of the list, closely followed by southern Italy. – See Financial Asophy.…

Unless otherwise defined, this refers to a company’s – income from temporary surplus cash, – investments in shortterm commitments and marketable securities. In most cases, it also includes – gains from foreign exchange transactions…

According to Section 1, Paragraph 19 of the German Banking Act (KWG), this includes banks, securities service providers and insurance companies; more detailed definitions are provided in the text of the law. – See…

The Financial Information Regulation, which came into force at the beginning of 2013 on the basis of Section 25 (3) of the German Banking Act (KWG), replaces the Monthly Financial Statements Regulation and the…

In general, a financial product that was previously unknown on the financial market in this form. – In the narrower sense, a derivative, namely basically a contract whose value depends on future market prices.…

In common parlance, any business entity trading in financial markets, primarily banks and insurance companies. – In the language of German supervisory law, the generic term for credit institutions and financial services institutions; cf.…

A bank that has an international orientation in its business activities and usually also has a significant influence on the financial market as a whole. As a result, the respective institution is usually highly…

In common parlance, a very broad term that roughly corresponds to the terms bank and, in some cases, financial service provider. – Within the ESCB, the term always refers to an institution as defined…

a credit institution or other entity whose business is to receive deposits from, make loans to and/or invest in securities of other entities. – Whether a financial institution other than a credit institution is…

At the ECB, any contractual arrangement relating to payments involving monetary financial institutions. – Pursuant to Section 2 (3) of the German Banking Act, a contract that gives rise to a financial asset (such…

According to IAS 39.10, a financial instrument that – necessarily including a non-derivative host contract – results in a portion of the instrument’s cash flows (hybrids) being subject to fluctuations (oscillations: vibrations above and…

As defined by the ECB, these include repurchase agreements, money market fund shares/units and money market paper, as well as debt securities with an original maturity of up to two years. They are reported…

Defined by IAS as – trade receivables and payables (underlying transactions; bread-and-butter lines) and – financial receivables and financial liabilities. IAS 39 classifies primary financial instruments on the assets side into three categories: held…

Unless otherwise stated, this is defined in accordance with IAS (32) as a financial instrument that can be terminated by the holder. Attention: The financial encyclopedia is protected by copyright and may only be…

Companies are currently (end of 2011) still required to allocate their financial instruments to one of the following classes when applying international accounting standards in accordance with IAS 39: – available for sale, –…

Office located at the Federal Criminal Police Office in Wiesbaden with the main task of collecting and evaluating suspicious activity reports submitted under the Money Laundering Act and comparing them with the findings of…

In balance of payments statistics, the asset holdings – of foreign investors at home, on the one hand, and – of domestic investors abroad, on the other. Because of the associated capital flows, these…

Generally, companies that receive money from investors and lend it to borrowers (any financial institution that receives money from savers or investors and lends those funds to borrowers, thus providing a link between those…

A unit of measurement introduced into the balance of payments statistics in 2014. Basically, the services provided by financial intermediaries are filtered out and recorded as accurately as possible in a very complicated calculation…

In general, a commitment of cash in which the investor makes its capital available to a third party in return for the transfer of ownership or creditor rights. Section 266 of the German Commercial…

Generally often referred to as anyone who operates in financial markets and has a choice of three different behaviors: speculation, hedging, and arbitrage. – In the context of a leveraged buy-out, anyone who uses…

A term that arose after 2010 in relation to Switzerland. – With growing mistrust in the wake of the debt crisis in the EMU and at the same time also in the USA, many…

Person who reports on financial events in the media in general and in newspapers in particular, and usually also comments on them. – Financial journalists at major newspapers often prove to be extremely knowledgeable…

Words, expressions and idioms (jargon) that are – or used to be – common in the financial world and – are immediately understood by those working there in their sense, in their meaning. –…

Unless otherwise defined, in the case of a company, all items for which interest must be paid, such as debts to banks or bonds issued by the company. – See net debt. Attention: The…

The knowledge of financial market operations, usually related to – the intellectual class, but also – the general public; and usually associated with the complaint that this knowledge is minimal. – See building blocks,…

In jargon, a very wealthy and powerful businessperson acting in financial market; the word is originated in the Japanese language. – See financial sodomite, Grosskoz, Soros speculation. Attention: The financial encyclopedia is protected by…

In general – the domestic and foreign supply and demand for – all money-related services of banks, stock exchanges, insurance companies and others, including the shadow banking sector – in any form, for example…

The planned, well thought-out, scientific examination of the financial market as a whole, of individual sub-markets or even of individual transactions. It always requires an interdisciplinary approach. If, for example, someone from country X…

Founded in 1955 – at that time still under the name “Association Cambiste Internationale, ACI” – professional association of foreign exchange traders working on the world’s financial markets with headquarters in Paris. The association…

Unless otherwise defined, the disciplining function of financial markets refers to the pressure exerted by the international financial market on governments to limit their public spending and debt. – Empirical evidence shows that such…

Collective term for any form of standardized and tradable financial products such as securities, foreign exchange, precious metals, options, futures, etc. Attention: The financial encyclopedia is protected by copyright and may only be used…

A financial market is considered integrated if it is ensured that all potential market participants – are subject to the same rules, – have the same access to the market and – are treated…

The effort to align the individual submarkets of supply and demand for financial services of all kinds in the euro area. – Soon after the introduction of the EUR, a liquid, single money market…

The individual players on the financial market (mainly banks, funds, insurance companies) have a close business relationship with each other (nowadays mostly even worldwide). In normal times, it appears that their risks are independent…

The totality of all regulations that order, define and determine financial market action in a national or international framework. – See regulation, system conflict, financial market. Attention: The financial encyclopedia is protected by copyright…

Regularly published notices about events on the financial market in general and on the stock exchange in particular, issued by individual authors or companies founded especially for this purpose. Investment recommendations made therein are…

The quality of any mental model explaining the interrelationships on the financial market depends on how realistic the assumptions made are in relation to the actual conditions on the market. Since it is not…

Person who, on behalf of a client, collects data about the – as yet unknown – business partner, especially – in the run-up to contract negotiations, and/or – investigates fraudulent practices in order to…

Generic term for the – legal framework in a country for transactions on the financial market, – bodies established by law to monitor these activities, and – measures for self-regulation of the financial industry,…

Unexpected and violent rash on the financial market, usually a sudden sharp drop in share prices. Triggers (as past experience clearly shows) do not necessarily have to be special events (e.g. natural catastrophe, sovereign…

In a narrower sense, the risk situation of a national financial system in terms of its risk-bearing capacity, namely how well it can absorb market imbalances and shocks. In this context, the risk situation…

Breakdown and ongoing numerical presentation of financial market instruments compiled and published by the ECB. Originally intended primarily for the ECB’s statistical reporting framework, the system is now publicly available to everyone. The figures…

Pressure exerted on market participants – by uncertainty and – changing expectations with regard to possible losses in the financial markets. The extent of stress ultimately depends on the degree of vulnerability of the…

A financial market that runs smoothly at all levels – ensures the financing of innovation and – in one, causes capital to be directed to where promising innovations appear (financial market performs the task…

Act that entered into force on November 1, 2007, with the aim of harmonizing the regulations applicable throughout Europe to the licensing and activities of financial service providers. – See Markets in Financial Instruments…

Act enacted in October 2008 under fast-track procedure with the aim of cushioning any major collapses on the German financial market. It contained provisions on – a guarantee assumption by the Financial Market Stabilization…

In general, the application of any kind of computational methods to processes in the financial markets (branch of applied mathematics concerned with the financial markets. The subject naturally has a close relationship with the…

Term from the Marxist accusatory literature against the marked-based economy. It is meant to express that – a few big banks and insurance companies form a very influential, circled circle within society – and…

In jargon, a term usually used disparagingly to describe a lawyer who acts after the insolvency of a company and ultimately has nothing else in mind than to enrich himself from the bankruptcy at…

In Germany, a body with the objective of structuring all public budgets according to the yardstick of the EU Treaties (convergence criteria under Title VII of the Treaty on European Community [Treaty of Nice]).…

In general, the mental anticipation of future incoming and outgoing payments, together with the decision on the most favorable way to carry out processes and business transactions at all levels (process of assessing an…

The management of a customer’s assets invested in financial instruments with its own scope for disposition and decision-making. In Germany, such service providers require a license and are subject to supervision by the Federal…

In general, for a business entity, the stock of cash and cash equivalents plus immediately accessible loans. – In rating models, the portion of a company’s debt that can be repaid within a certain…

In a very broad sense, all securities traded on the financial market, including stocks and bonds. In the language of the financial world, financial products are always meant when the term “products” is used.…

Transactions that a customer can make on the financial market using a card. – See money, electronic, credit card fiasco, pay green initiative. Attention: The financial encyclopedia is protected by copyright and may only…

Rarer term for derivatives. Sometimes – quite ambiguously – the term hybrid capital is also used for derivatives – see the overview in the ECB’s Monthly Report of May 2000, p. 42; BaFin’s Annual…

Combinations of two or more financial instruments; at least one of them must be a derivative. They are traded either on or off the exchange. Each structured product contains its own particular risk profile,…

Science that seeks to apply behavioral patterns discovered within psychology to events in the financial markets. A main focus is Behavioural Finance (also in German; less frequently translated as Qualitative Finanzmarktanalyse). The aim is…

Reinsurers offer insurance coverage to a primary insurer for – current and future loss events (prospective concern) or – past loss events (retrospective concern). Regulators generally view such risk transfers with suspicion. – Cf.…

Means of limiting government spending, mainly applied at the cantonal level (CH: mostly cantons) in Switzerland. For certain public expenditures, the approval of the people (plebiscite: a vote by which the people of Switzerland…

A person forced to leave his or her home country because he or she is harassed there by intrusive creditors or intransigent tax authorities (a person forced to seek asylum due to persecution by…

Since the beginning of 2007, the German Federal Financial Supervisory Authority (BaFin) has also been responsible for monitoring compliance with all regulations governing the financial reporting obligations of capital market-oriented companies. This applies to…

At European level, a central electronic access portal for financial reports is planned by 2018 to improve the flow of information on the market. By 2020, these should then also be fed in a…

In general, all types of cash held by a business entity. – In the case of a company, cash funds that fill the deficit arising from the timing differences between a company’s cash receipts…

someone who abuses his position of power or the trust placed in him to embezzle money on a large scale (a person who misuses his position of influence, power or trust to commit large-scale…

In relation to the financial market, a person who appears by rude, rough, uncouth behavior (a person in financial markets dealing in a tough manner). It should be emphasized, however, that in the Swiss…

Regulations issued by the UN or EU regarding accounts of persons and entities (“target subjects”) suspected of terrorism (restrictions on free access by designated entities to any funds and economic resources owned or controlled…

In a narrower sense, the banks, insurance companies and capital management companies in a state or economic territory such as the EU. – In a broader sense, it also includes – all institutions serving…

detailed guidance issued by the International Monetary Fund (IMF) together with the World Bank in 1999 for the early identification of risks and weaknesses in a country’s financial sector. As of spring 2002, more…

Pursuant to Article 1, Paragraph 17 of the German Banking Act, “cash balances, sums of money, securities, money market instruments, and other promissory notes, including any rights or claims associated therewith, which are provided…

Generic term for any kind of service that has a connection to the financial market, and thus all offers that are made on all segments of the money-related market worldwide. Disregarded here is whether…

Action Programme Financial Services): Catalog of measures introduced by the EU Commission in May 1999 with the aim of achieving uniform legislation and organization in the Community’s financial services markets. In 2002, the EU…