English

Activities aimed at unlawfully influencing the price of a security – in the narrower sense: a listed security. In recent years, such activities have increasingly been taking place in the legal vacuum of the…

In general, the amount of money that actually has to be paid for a good (product or service) at a certain point in time. It depends primarily on supply and demand as well as…

In general, exposure to adverse market influences – on all economic decisions (the exposure to unfavorable trends as in product prices, interest rates, exchange rates, raw material prices or stock prices) and – on…

Model calculation carried out annually by the Deutsche Bundesbank and published and discussed in detail in the Financial Stability Report. In this test, selected institutions are exposed to risk events relating to interest rates,…

The habit of many politicians and the media to blame crisis developments in the economy on criminal behavior in the financial markets. – It is by no means decades of mismanagement in all sectors…

Market share is a measure of the portion of a market controlled by a particular company or product. It is a key indicator of a company’s competitiveness and is often used in strategic planning,…

The attempt to predict the future direction of the market, usually through the use of technical indicators or/and economic data. – A strategy of moving in and out of a given market in order…

Tax paid by a merchant or citizen to the market lord – sovereign, king, city administration – for the right to offer goods for sale at the market; either as a stall fee graduated…

Suppliers and buyers on a sub-market have knowledge of all circumstances and conditions on this market. In the ideal situation (the model image that can be imagined to the highest degree of perfection), all…

The calculation of the loss that would be incurred today on a contract or set of contracts if a counterparty failed to perform on its obligations. The current replacement cost – which corresponds to…

In the case of a security or commodity, the current price of the asset on the stock exchange: the market value. – However, the latter word is avoided as far as possible in financial…

Primarily used in connection with real estate. It is understood to mean the price which – at the time to which the determination relates – could be obtained in the course of business on…

Primarily used in connection with real estate. It is understood to mean the price which – at the time to which the determination relates – could be obtained in the course of business on…

In the financial market, a situation in which prices fall (a financial product or index is currently trading below the earlier closing price). – See wait-and-see, attentism, asset distress, bear, bubble, speculative, crash, domino…

The order to buy or sell an asset when a contractually specified price or rate is reached (a conditional order that becomes a market order when a specified price is reached). – See execution,…

Agreements between suppliers in a market that exclude competition and divide up customers among themselves. They specify in detail who does what business where (agreements in which competitors divide markets among themselves. In such…

Term from IAS (36.6, 38.7 and 41.8). In relation to a financial instrument as defined in IAS 39, supply and demand provided that – buyers and sellers can usually meet at any time, –…

Trade in which the price of the good is determined through the interaction of free decisions by buyers and sellers, as on the floor of the stock exchange or an auction (market in which…

A market which displays a high liquidity; it is, therefore, easy to find buyers to which to sell an asset, or to find sellers from which to buy an asset. “Market” here can relate…

In the U.S., the over-the-counter trading of listed securities between large institutional investors without the intervention of a broker (direct trading of large blocks of securities between institutional investors to avoid brokerage commissions; usually,…

In the financial markets – transactions in financial products and, in particular, securities, – offered by providers not supervised by the supervisory authorities – usually within certain social groups. – The pre-market trading of…

Long-term fixed rate securities generally have a higher yield than short-term securities. However, if demand for short-term securities is very strong, their yield may rise above that of long-term securities. In Germany, this was…

In general, and especially on the stock exchange, an environment characterized by – high turnover, – only small deviations between the bid and ask prices, and – the ability to accommodate larger orders without…

In general, a market where there is very little trading going on. – In the stock exchange, when only a few shares of a stock are tradable. In this case, the demand for just…

Pursuant to Section 2, Paragraph 5 of the German Securities Trading Act (WpHG), a multilateral trading system operated or administered in Germany, in another member state of the EU or in another state party…

Generally, a market situation where there is a lack of supply – situation on the stock market where the price for a security and sometimes for the market as a whole – has risen…

Generally, a market situation in which there is a lack of demand: a buyer’s market. – Situation in the stock market where the price for a security and sometimes for the market as a…

In many considerations, also in financial theory, an ideal picture with essentially the following properties, namely – there are no preferences, neither personal (individual preferences: the market participants have no preferences over partners), nor…

A segment of German stock exchanges precisely defined in the stock exchange rules and regulations with prescribed minimum standards that comply with the European Securities Services Directive; see Articles 49 et seq. Stock Exchange…

A market in which all traded goods or services are regarded by customers as substitutes in terms of their characteristics, prices and intended use (substitutes: goods that meet the demand that another product fulfills).…

A market in which trading volume is low and in which thus bid and ask quotes are wide, and consequently the liquidity of the instrument being traded is low. – See Market, weak. Attention:…

A buyer’s market: supply exceeds demand (a market with more potential sellers than buyers). – An industry or a certain asset where supply is greater than demand for a longer period. – See market,…

In the stock market, when prices are quoted at a fixed level at the close of trading and do not fall or fall only very slightly even in the event of excess supply (the…

Over-the-counter market trading of securities – and particularly of listed shares – by institutional investors and non-exchange-member broker/dealers; transaction sizes are usually large. – See Investors, institutional, Money market segments, Trading system, alternative, Interbank…

Condition in the stock market in which sellers predominate (the number of sellers is greater than the number of buyers). – See wait-and-see attitude, attentism, bear, bear market, graveyard market, buyer’s market, yielding, stillness.…

The ability of a financial product to be traded smoothly and at any time. – The ability of a security to be accepted for trading, also referred to as saleability (securities that are easily…

In principle, all goods and services to which the exclusion principle applies, i.e., to which property rights can be precisely defined and legally enforced. – In practice, goods and financial instruments that meet the…

In general, the price at which it would be possible – at the time of valuation – to sell the asset in question on the basis of a private contract between parties acting voluntarily…

EU Markets in Financial Instruments Directive): Directive drawn up by the EU Commission for the purpose of integrating the financial markets of the member states; this had to be transposed into national law as…

Published by the European Commission in April 2004 as a successor to and update of the European Investment Services Directive. It is regarded as the basic law for the European single market for financial…

A fee formerly due to the forest official for marking the trees to be felled when wood is delivered for building or heating purposes. Attention: The financial encyclopedia is protected by copyright and may…

The practice of revaluing assets using current market prices, i.e., adjusting the value of assets in general and of deposited collateral in particular to current market prices. – In the course of the transparency…

Trading segment introduced on the Frankfurt Stock Exchange in 1997 for shares of smaller high-growth companies. Special admission requirements apply. – See also dotcom bubble, issue prospectus, Nemax. Attention: The financial encyclopedia is protected…

Payment by farms to the usually sovereign possessor of a marl pit. In earlier times, marl was a popular soil improvement material in many areas, containing both lime and other minerals. – In old…

If not defined otherwise, this refers to an earlier tax paid by citizens when marrying in the sovereign family. This money had to cover the wedding costs. – See Frauengeld, Fräuleingeld, Hebegeld, Hielichgeld, Hochzeitsgeld,…

In older documents, a payment from municipalities to army commanders for avoiding the passage of troops through the town and choosing another route. The passage of foreign as well as own soldiers was in…

A central bank must switch to a liquidity-restricting monetary policy as soon as the first signs of overheating and the danger of a bubble become apparent (“take away the punchbowl [the punchbowl: the drunkenness-inducing…

Generally, a legal transaction in which the reputation of the person plays no or only a subordinate role and which is typically therefore also established and carried out on a large scale on comparable…

The net wages and salaries plus monetary social benefits received in an economic area. – See private households. – For Germany, see the statistical section of the respective monthly report of the Deutsche Bundesbank,…

In older financial terminology, also the remaining assets of an insolvent company available for distribution to creditors after deduction of all costs (all non-exempt assets belonging to the bankrupt at the date of the…

The sudden mass selling of a stock or other asset because the prevailing opinion is that the security or asset is overvalued (the rapid and concentrated sale of an asset thought to be overvalued…

The outsourcing of core activities and ancillary activities such as reporting, controlling or accounting from a fund. The transfer can either be made to a new company that manages all transferred assets on a…

Unless otherwise defined, a rescue company that was to be set up in October 2007 by leading banks together with the Treasury Department in the USA in the wake of the subprime crisis. The…

In old documents, the customary payment that a craftsman promoted from journeyman to master had to make into the treasury of the guild. – See “Annehmungsgeld”, “Aufleggeld”, “Dispensationsgeld”, “Fordergeld”, “Innungsgeld”, “Zunftgeld”. Attention: The financial…

In general, the process of checking whether the service provided by a business partner is in accordance with the agreed contractual terms (the procedure used for comparing the details of a contractual service provided…

In general, the matching of the timing of deposits and disbursements in an economic entity. – In the case of a bank, the basic matching of the maturities of loans granted with the deposits…

In economics, the naturally given, i.e. non-produced, things such as land, mineral resources, free animal and plant stocks or water reserves. – The exact definition poses difficulties because the conceptual content usually used in…

Asset in tangible form. – (Investment) object which carries its value in itself, i.e. in its substance, in its substance, in its material (intrinsic value). In contrast to this are – money as a…

In the course of takeover bids, the proviso that certain changes at the target company (acquiree: the firm that should be acquired), usually described in detail, render the offer null and void (the clause…

Designation for securities of an issuing consortium that have not yet been placed with customers; also called “floating” material. – The proportion of a company’s shares that are traded on the stock exchange (in…

In older financial terminology, assets from a maternal inheritance. Correspondingly, paterna (paternalia; pater = father) was used to refer to assets accruing or expected to accrue from a paternal inheritance. Attention: The financial encyclopedia…

In older documents also a register of income from an ecclesiastical or secular office. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University…

Analogy term in connection with deficits in the current account of the USA. It originates from astronomy, where it describes the inconsistency between actual matter, which can be derived from the gravitational force acting…

Money held by private households that is not put to any interest-bearing use but is accumulated and stored in its own management somewhere in the domestic sphere (under the mattrass; the word “mattress” derives…

A term commonly used in financial terminology for the end of a certain period of time, although often criticized by linguists as being linguistically unattractive; this end point in time is then also referred…

In general, the occurrence of a performance obligation (obligation to perform, duty of payment), determined according to a fixed point in time. – If this is contractually fixed, the creditor may not demand performance…

At the ECB, the date on which a monetary policy operation expires. – In the case of a repurchase agreement or a swap operation, the maturity date corresponds to the repurchase date. Attention: The…

Factoring in which the customer waives the right to advance the receivable to the factoring company – the factor. Only when the debtor’s payment has been received does the factor transfer the money to…

Unless otherwise defined, the difference in yield between long-term and short-term (government) bonds (extra average return from investing in long-term versus short-term Treasury securities). It is taken as a measure of market participants’ expected…

In the case of a fixed-rate loan granted by the bank, the risk that the interest rate will increase until the facility is called by the borrower; in other words, the bank granting the…

Unless otherwise defined, the breakdown of payments to be made by date of maturity. – See maturity structure. – Cf. Deutsche Bundesbank Monthly Report January 2012, pp. 24 ff. (Maturity structure of loans to…

In older documents, fraudulent activities in mining, especially through false accounting by unfaithful shift supervisors (shift supervisors, purser, inspector) and shift clerks (clerks of the mine) at the expense of the miners and tradesmen.…

In older financial language also used for a market participant or contracting party of Jewish faith (a Jewish person), usually meant in a derogatory sense (a derogatory term). – According to its origin, Mauschel…

Maximum bid limit in euro for bids submitted by individual counterparties to the ECB in a tender operation. – The Deutsche Bundesbank conducts the bidding procedure for German institutions in the Open Market Tender…

Maximum bid limit for bids submitted by individual counterparties in a tender operation. The Deutsche Bundesbank conducts the bidding procedure for German institutions in the Open Market Tender Operations System (OMTOS) on behalf of…

Maximum interest rate at which the ECB’s counterparties may submit bids in variable rate tenders. Bids above any maximum bid rate announced by the ECB are not taken into account. – See also the…

Order by a central bank or supervisory authority that banks may not exceed a specified term for (consumer) loans. – A shorter period of repayment now means a greater burden on borrowers. Demand for…

The same external and internal standard in all (bank) branches, with a focus – on only a few products that are easy to understand and hardly require any explanation, – unconditional customer friendliness, –…

Money (means of payment; assets in the form of money). – Factors of production, input factors as the total input of goods to produce a product (the requirements for production, usually represented as capital,…

Unless otherwise defined, the ability of an item to be expressed in monetary terms. This is the fundamental prerequisite for the accounting treatment of all processes at the level of the company and in…

In general, a purposeful action in the form of doing or not doing something. – In the context of monetary policy, the use of a central bank instrument. The measure is in line with…

Under section 46 of the Banking Act, the Federal Financial Supervisory Authority is authorized, in the case of a problematic institution, to – issue instructions to the management of the institution, – prohibit the…

The ECB measures the increase in prices with A Laspeyres price index is used. This is based on a specific basket of goods with fixed quantities of a base year. The prices of this…

Calculation of the contribution of individual economic sectors to the increase in overall economic productivity. The ECB has refined the measurement of productivity step by step in recent years as part of its inflation…

As part of its macroeconomic analysis, the ECB also examines profit developments in the euro area and publishes corresponding results. – See profit, two-pillar principle. – See the ECB’s Monthly Bulletin of January 2004,…

A piece of metal not intended as a means of payment, usually rounded, with an inscription and/or figurative representations for – commemorative purposes or – to honor special achievements; colloquially, in the first case,…

Unless otherwise defined, the rules of coordination applicable within the framework of national supervisory authorities among themselves or with other bodies. – See Banking Supervision, European, Memorandum of Understanding, Arbitration. – Cf. 2006 Annual…

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…

In principle, it is clear from the context of the text which period is meant in each case, because unfortunately there is no uniform definition. – In ECB statistics, this refers to amounts with…

In older financial terminology, this meant bills of exchange with a maturity of about three weeks to two months. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Bearer bond issued by a bank to provide capital to a specific company, usually for a period of two to fifteen years. As a rule, the securities are introduced on the stock exchange; however,…

The determination of monetary policy for a period of time that is characterized by the course of business cycles. Expressed in years, this means a goal orientation of five years or more. – See…

The fact that only a few globally active banks are active in certain segments of the financial market. This increases the concentration of trading in important products, such as certain derivatives. As a result,…

In the financial market, the merger of usually two large banks into a single institution. – As experience has taught, it often takes a decade or more for the positive size effects from such…

Loan for improving the cultivation of land. – In the European countries, especially in the 18th century, in the course of the policy of “internal colonization,” loans were mostly granted by the state directly…

The risk that a general deleveraging process will put overall asset prices under pressure. This reduces the fair value of the assets reported in the balance sheet and equity declines. In the course of…

Unless otherwise defined, a device for melting precious metals. – To limit coin counterfeiting, ownership of a melting furnace was prohibited under severe penalty until modern times. Jewelers, posamenters (loop makers; posaments [passementries] are…

Unless otherwise defined, a device for melting precious metals. – To limit coin counterfeiting, ownership of a melting furnace was prohibited under severe penalty until modern times. Jewelers, posamenters (loop makers; posaments [passementries] are…

It must be ensured that a member of the supervisory board in a company in the financial sector is knowledgeable and reliable. This is because it has been shown in many failures and bankruptcies…

As a rule, payments from subordinate to superordinate public associations that are not earmarked for a specific purpose and are financed from general budget funds; especially in a federally structured state, payments from the…