English

Legally determined quantity of gold equivalent to a unit of currency. Since there was no longer a gold currency, gold parities were determined fictitiously, estimated by the International Monetary Fund. In 1971, gold was…

The daily quoted market price of the precious metal gold is considered to have a signal function. Experience has shown that many investors switch to gold or platinum (platinum is usually quoted at around…

Unless otherwise defined, the stock of bullion gold held by a central bank as part of its monetary reserve. Its purpose is to be able to be used in emergencies. This is because gold…

Unless otherwise defined, this refers to the stocks of gold managed by the Deutsche Bundesbank as the property of the German people, as it were. The stocks of gold held by private households and…

Unless otherwise defined, this refers to the request that, within EMU, countries with high gold holdings in their currency reserves use them in some way for the benefit of highly indebted members. This has…

The linking of means of payment to the precious metal gold. – In the gold circulating currency (gold bullion standard), the money consists only of curant coins. – In the gold core currency (limping…

Gold drawn out thinly into a fiber. In the past, textile craftsmen skilled in this work added it to fabrics intended primarily as clothing for persons of higher social rank, for uniforms including epaulets…

Unless otherwise defined, the price of an object, sometimes also of a security, expressed in (weight) units of gold. In contracts, especially in offshore financial centers and sometimes also in underground banking, such a…

From ancient documents and the books of the Old Testament, a value ratio of gold to silver can be calculated as 1 to 12. Both metals were used until modern times for the production…

In ethics, the guiding principle of all action, including action and inaction on the financial market: namely, to avoid doing to others what you would not want them to do to you (the precept…

The principle of matching maturities in the interest of maintaining the willingness to pay. This results in the requirement that – current assets (circulating assets) be financed by short-term capital and – fixed assets…

Principle requiring matching maturities between – capital procurement and repayment on the one hand and – capital utilization on the other. In other words, capital may not be tied up in assets for longer…

A term that emerged around 2000 to describe an economy or economic area such as the euro area with high growth and low inflation and no discernible risks to the financial system as a…

In the older financial language, a person who pretends to be able to transform base metals, especially iron, into gold by “transmutation” (transmutation: the conversion of a base metal into a noble metal). At…

Unless otherwise defined, in the financial market this refers to the attachment of national rules to EU-wide or international arrangements, especially on the part of the respective supervisory authorities. – See German Finish, IFRS…

Notes issued in the 17th century by goldsmiths in London, which were denominated in precious metals deposited with them. In the course of time, it became common to pay with these receipts, so that…

Generally, a bank for whose losses the state and thus the taxpayer is liable. – In particular, related to the association of German banks with the state-owned Kreditanstalt für Wiederaufbau (KfW) for the purpose…

In relation to banks, as a supervisory term, dutiful, knowledgeable management (management in a manner that is fundamentally free of abuse and corruption, and with due regard for the rule of law). – In…

A good or service that – is available to all people in a social group,- but which is not used by one person in a way that adversely affects others; in other words, there…

Any demonstrably established relationship between macroeconomic variables changes when it is made useful for the purpose of monetary policy (as soon as an economic indicator is made a target for the purpose of monetary…

In the sense of the economic theory usable means, to which – rarity (scarcity), – use (utility: the property adhering to the good, for whose sake it is desired by humans) and – accessibility…

Goods and services of daily use, the purchase of which cannot be postponed. These goods and services take up most of a household’s budget because they are important for maintaining a normal standard of…

The positive difference between the purchase price and the fair market value of the assets and liabilities acquired with a company. – The intangible value of a company (that relates chiefly to a fruitful…

An arrangement on a good-will basis after conclusion of the contract between contracting parties in the financial market, thus waiving the need for a legal dispute. – Since around 1970, questions of goodwill in…

Generally, the positive difference between the purchase price for a company and the fair market value of the assets and liabilities acquired with a company. – According to IAS/IFRS, in the case of a…

The EU’s so-called reform package, which came into force in mid-December 2011 with the aim of addressing the weaknesses in the Stability and Growth Pact that had come to light. – See devaluation, fiscal,…

The EU’s so-called reform package, which came into force in mid-December 2011 with the aim of addressing the weaknesses in the Stability and Growth Pact that had come to light. – See devaluation, fiscal,…

The securities issued by public entities (general government, constituent states, municipalities). – In Germany, the majority of trading in federal government securities takes place in over-the-counter telephone trading, with the Bundesemissionen bidding group playing…

The securities issued by public entities (general government, constituent states, municipalities). – In Germany, the majority of trading in federal government securities takes place in over-the-counter telephone trading, with the Bundesemissionen bidding group playing…

Unless otherwise defined, the differences in yields on government bonds of individual countries within a currency area such as the euro area. This reflects investors’ confidence or distrust in economic policy in general and…

Bonds issued by private issuers in various countries, especially after 2008, for which a government provides the guarantee. The fee charged for this by the state in the individual countries is between 0.5 and…

In the USA, a company whose business risk is ultimately borne by the taxpayer and which therefore also has access to favorable loans (quasi-governmental organization that is privately owned but was created by the…

In the USA, a company whose business risk is ultimately borne by the taxpayer and which therefore also has access to favorable loans (quasi-governmental organization that is privately owned but was created by the…

The purchasing power of a currency expressed in terms of a precise measure of a particular grain. Especially in times of strong inflation, the grain value was used as a basis for contracts. In…

In older documents, the consent of parliamentary bodies (Landstände; provincial legislatures as elected representatives, estates of the country) to requests by the government for the allocation of money for specific state purposes. – See…

The number of patents granted in an economy or currency area is an important yardstick for assessing the value of money, especially in the longer term. Central banks therefore monitor this parameter. – In…

Measure of the number and amount of individual loans in relation to the total volume of loans granted by a bank; more specifically, a measure of the spread of loans by amount. High granularity…

In older documents – a person who is supplied free of charge, such as relatives of the principal or officials from whom it is expected that the company will benefit. – A pupil who…

Generally, a special payment for which there is no cause in law. – One-off payment to employees on special company occasions, such as occasional record profits, company anniversaries or holidays (Christmas allowance). – Allowance…

Condition in the financial market in which prices plummet to infinity at the same time that potential investors hold back from buying. – See downturn, asset emergency, attentism, bear, bubble, speculative, crash, domino effect,…

Expression for the fact that volatility on the financial markets has decreased since about 2000. The reasons are considered to be – the stricter selection of borrowers, – the improved risk management at banks…

The excessive, insatiable and therefore pathological desire for wealth, for fortune. – It is characteristic that the greedy person – does not focus on the useful use, not on the economic use and –…

On April 23, 2010, Greece, a member of the euro area with a population of almost eleven million, had to ask its euro neighbors and the International Monetary Fund for financial assistance. The country…

Popular term for the one-dollar bill. In the plural, sometimes also used for the banknotes of the USA as a whole. – Greenback currency notes were originally issued by the North during the American…

In general, the establishment of a branch in a completely new location, in the narrower sense on an undeveloped, virgin site, on a pasture that was literally a green field. – In the case…

The Greenhouse Gas Emissions Trading Act (TEHG) of July 21, 2011, made trading in greenhouse gas emission allowances a business subject to authorization. The permit is issued by the German Federal Financial Supervisory Authority.…

The Greenhouse Gas Emissions Trading Act (TEHG) of July 21, 2011, made trading in greenhouse gas emission allowances a business subject to authorization. The permit is issued by the German Federal Financial Supervisory Authority.…

Someone acquires a significant share of a company’s stock. He informs the management and offers the shares for very expensive repurchase by the corporation. If this does not happen, he threatens to take over…

The view that a central bank should generally not be concerned about asset price bubbles. This is because – it is difficult to clearly identify a bubble, and – if monetary policy uses the…

In relation to the financial market, ambiguous, intentionally very vague statements (using fuzzwords: deliberately vague, imprecise and/or confusing terms) by a leading central bank official that provide room for all kinds of interpretations and…

The experimental fact that bad money displaces good money. – In a double standard (coins of gold and silver are legal tender), gold coins disappear from circulation and are hoarded for savings purposes. –…

Fake word used in financial journalism for Greece’s exit from the eurozone. – See Greek crisis. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

Formerly said of money thrown wantonly among the people, especially also (minor; small) coins among the – onlookers from the town hall window on the occasion of coronation festivities in Aachen (coronation festivities in…

In the coinage history of Europe widespread hard money piece with locally and historically different purchasing power in each case. – Until the introduction of the EUR in Austria, small coin to the schilling…

The value of all goods and services produced or rendered domestically in an economy within one year, valued at market prices and calculated according to internationally uniform rules, unless another period is specifically mentioned.…

The money someone earns in gross, i.e., without taking into account taxes of any kind (the total amount of money an employee has earned). – See labor costs. – See the relevant statistical section…

Unless otherwise defined in the foreign exchange market, the nominal difference in the interest rate between two places. – See net interest rate differential, spread, swap rate, interest rate differential. Attention: The financial encyclopedia…

The securities issued by an issuer within a certain period of time – usually based on a financial year. If the repayments made by the same issuer in connection with earlier issues are deducted,…

The percentage markup on the cost price of goods at the gross selling price (the difference between invoice cost and selling price), also called the trade margin. – The percentage of gross profit, calculated…

Unless otherwise defined, the totality and the aggregate of all public and private debt of a certain country. – See debt ratio, public, debt ratio, private. Attention: The financial encyclopedia is protected by copyright…

Unless otherwise defined, the – excess over or shortfall in the value of output, understood as sales of goods and services to other economic units, changes in stocks of own products and the value…

Gross Profit Margin, also known as Gross Margin, is a key profitability metric for a company. It represents the percent of total sales revenue that the company retains after incurring the direct costs associated…

A transfer system in which orders are settled one at a time. – See clearing house, automatic, capital transfer system, electronic, retail payment system, electronic, RTGS system, TARGET system. Attention: The financial encyclopedia is…

For banks under Basel II, interest result plus interest-related income. The latter includes – income less expenses from fees and commissions, – net income from financial transactions, and – other ordinary income. This does…

A contract that was common in the past in which a lender lends money (cargo-based lending; grossavanture money) to a shipping company for the purchase of goods – usually from overseas – in return…

Legislation enacted by the occupying powers to break up Germany’s big banks after World War II. – See Bank unbundling, German. Attention: The financial encyclopedia is protected by copyright and may only be used…

Unless otherwise defined, the comparison of an amount that would be required in the case of an investment subject to tax to equal the income from that investment as if it were not subject…

A person who brags about his money and wealth. The word derives from Yiddish kotsu = rich man; the spelling “bighead” with echoes of “vomit” is incorrect, though widely used. – See financial magnate,…

Section 18 of the German Stock Corporation Act (AktG) defines: “If a controlling company and one or more dependent companies are combined under the uniform management of the controlling company, they form a group;…

Payments made by a group company to the corporate head office (central management), calculated according to a certain formula, as remuneration for – membership in the group as well as for – the services…

Regulatory term used in connection with Solvency II. In the case of an insurance group, this is understood as the difference between the sum of the individual equity ratios of the subsidiaries and the…

Regulation that came into force at the beginning of 2007, according to which groups of institutions and financial holding companies can, among other things, – make use of a supervisory aggregation procedure and –…

Pursuant to Section 1, Paragraph 21 of the German Banking Act, a group of companies exists on the financial market if – a company is affiliated with one or more other companies in such…

Pursuant to Section 1, Paragraph 21 of the German Banking Act, a group of companies exists on the financial market if – a company is affiliated with one or more other companies in such…

Regulatory term broadly defined as – two or more natural or legal persons who, unless the contrary is shown, form a single entity with respect to a loan in that one of them is…

Unless otherwise defined, the currency areas USD, EUR and JPY. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

Deliveries of goods, exchange of services (supply of services) and financial transactions within a group of affiliated companies. – Globally, these sales are estimated to have accounted for almost one-third of world trade as…

Working group set up in 1972 at the pan-European level with the aim of harmonizing supervisory regulations in Europe. It also serves to exchange information on confidential individual banking supervisory issues. It has been…

Capital management company whose business policy is primarily aimed at long-term asset growth. A distribution of profits generated is therefore usually limited or not made at all (as a rule, it contains little or…

If not defined otherwise, the fact that when a direct tax is increased that is perceived as unfair – for example, on labor income; on the turnover of securities – those affected react by…

Payment by the brewer to the gruter (= spice master: expert who knows how to give beer its special flavor by adding spices) for the delivery of the grut (= herb mixture as wort…

On the stock exchange, an order that is valid until revoked (cancellation). – Stop order, day order. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The assumption of an obligation to indemnify, primarily in the sense in which this is regulated in Section 443 of the German Civil Code (BGB) as a guarantee of quality and durability. – In…

The commercial (on a commercial scale) assumption of sureties, guarantees and other warranties for third parties. In Germany, such activities require a license and are subject to supervision by the supervisory authority. – See…

A securitized claim – fixed in term – usually three to five years, – based on one or more underlying assets or whose value is formed from several indicators. – However, the holder of…

Capital securely invested with a financial services provider – primarily in top-rated public securities – and specially managed with the purpose of guaranteeing the repayment of issued securities at the end of their term.…

a financial instrument which pays to its holders a minimum fixed remuneration. – A financial product offered for subscription with a guarantee on the respective issue price of the security. In many cases, however,…

In the financial sector, payment promised to field representatives in particular, usually based on the month, even if sales in a month were unsatisfactory. As a rule, however, the guarantee commission paid is then…

In the insurance industry, the maximum interest rate for calculating a premium. However, interest is not paid on the total amount paid in, but only on part of it, the so-called savings contribution. –…

In the financial market, a person or entity that stands in for the debts of a contracting party (a third party becomes a guarantor to make sure a payment is made even if default…

Former levy in cities to pay the guards (guardians, guardsmen, shield guards; city ward, sentry). – Formerly, in rural communities, a payment to be raised by the village community to remunerate – the cattle…

Term that emerged around 2013 to describe a central bank’s increased effort to gain influence over the financial market through written pronouncements and heaping speeches by senior executives after monetary policy cut interest rates…

A levy that craftsmen have to pay into the guild. – Today, the guild is an administrative body (chamber) with the purpose of jointly representing the interests of self-employed craftsmen in the same industry,…

In former times, the regular payment of the members of a guild into the guild treasury. – Coins that were occasionally given to the couple – i.e. the bride and groom – by the…

Finely drawn patterns in the form of parallel lines (ribbon guilloche) or intertwined geometric curves (wave guilloche), sometimes shaped into a specific ornamental pattern (ornament guilloche, as on ECB banknotes). Printed on banknotes, cards…

Old coin that served as a means of payment, especially in Germany, Austria and the Netherlands. Its metal, contrary to what the name suggests, was not necessarily gold. – The purchasing power of the…

In jargon, someone who takes very high risks after seeking high returns in building and managing a portfolio (an aggressive portfolio management in search of large profits). The word entered the financial language in…

Payment of the members of an association in accordance with the articles of association. – formerly also of a guild -, primarily intended for the joint New Year’s dinner. – See pepper money, guild…