English

Experience shows that profitable companies prefer self-financing (profitable companies prioritize their sources of financing from internal financing). In this way, management can most easily escape the scrutiny of banks as providers of capital, new…

In older documents – the misappropriation of entrusted assets or money in general (embezzlement: the act of dishonestly appropriating or secreting assets, usually financial in nature, by one or more individuals to whom such…

In the past, the self-acquired property of a son, even a minor, which he was allowed to manage independently with his father’s consent. – A fund for personal purposes (a special fund for private…

Former tax that pedestrians coming from out of town had to pay at the gate guard upon entering a town. – In brothels, the taking from the second customer in a day, as opposed…

In 1844, after very long and stormy debates, the Bank of England – today the central bank of Great Britain – introduced a regulation for the Bank of England, which alone is authorized to…

A term that entered the German (youth) language around 2000 for a payment made voluntarily and not determined in advance, tip, service money, also hand money, bribe – see douceur, hand money. Attention: The…

The original objective of the Stability and Growth Pact was to ensure that all members of the monetary union abided by the rules laid down in the treaty with regard to their public finances.…

In supervisory law, the assessment in degree of equivalence of rules for a particular operation by supervisory authorities in different countries (an assessment of the equivalence with regard to banking supervisory standards in different…

Private households seeking capital apply for loans offered by others, usually via Internet portals (lending and borrowing which occurs directly between individuals or peers without the intermediation of a traditional financial institution, usually based…

Older adjective of financial language meaning moneyed, financially strong, well-to-do, wealthy (affluent: having an abundant supply of money or possessions of value). – See money man. Attention: The financial encyclopedia is protected by copyright…

The price paid by the central bank in extraordinary cases to banks to break up a liquidity bottleneck. – Also popularly used to refer to the early repayment penalty, i.e. the fee charged by…

The price paid by the central bank in extraordinary cases to banks to break up a liquidity bottleneck. – Also popularly used to refer to the early repayment penalty, i.e. the fee charged by…

In the U.K., a letter used to be sent by the finance minister to the governor of the central bank when inflation rose above two percent. In the letter, the central bank had to…

In the U.K., a letter used to be sent by the finance minister to the governor of the central bank when inflation rose above two percent. In the letter, the central bank had to…

A savings box, often in the shape of a pig, into which coins can be inserted through a slot (a small container, frequently having the shape of a pig, provided with a slot at…

Shares issued by smaller companies, mainly in the U.S. and Canada, and introduced at extraordinarily low prices – sometimes below one U.S. dollar (low-priced speculative issues of stock trading in the over-the-counter market). With…

In older documents relating to commercial dealings, a person who acts with exaggerated precision and in pathological overdrive when making payments. Behavior in this sense was also referred to as calamitousness. – See argyromania,…

Unit of mass for precious metals and gemstones in England and the United States: 1 dwt. = 1.555 grams (unit of mass that is equal to 24 grains, 1/240 of a troy pound, 1/20…

Word occurring in older documents for money, and usually meaning a larger sum. – See money terms, vernacular German-language, Gequetschte, Hühnerfutter, Kleingeld, Moneten, Pezzi, Spores Raffel, Zucker. Attention: The financial encyclopedia is protected by…

A company in general, and a bank in particular, is limited in terms of the resources needed to initiate, launch and implement growth programs of any kind, including mergers. – However, if the corresponding…

to make a payment; please do not pronounce [as unfortunately the mass of the Teutonic dullards] crotchet-falsely Frenchizing Panksion: there is neither an “a” nor a “k” in the word!) Regular payment of a…

In Germany, the German Retirement Assets Act (AVmG) also allows capital management companies to offer the conclusion of pension contracts. For this purpose, Section 1, Paragraph 6 of the KAGG was amended and some…

In general, a capital stock with the purpose of guaranteeing employees a pension after they retire. As global arbitrageurs and speculators, as buyers of often risky securities and even works of art, pension funds…

Any plan, fund, or scheme established by an employer which provides retirement income. In Germany, as a result of the Retirement Assets Act, such institutions are also subsidized by the state. The funds are…

Unless otherwise defined, a special fund with the purpose of providing retirees with an annuity from its earnings. – See Retirement Assets Act, retirement contracts, civil service associations, balance sheet, holistic, arrangement, salary sacrifice,…

A law enacted in Germany in 2001. According to this law, pension fund investments lead to a substantial improvement in returns, primarily because – contributions are made from tax-free income, – interest receivable remains…

In Germany, compulsory insurance (statutory insurance) dating back to 1889 to guarantee income in the event of accidental disability and old-age pensions. Today, it represents an important parafiscus, having been redesigned many times and…

Liabilities of a company arising from the contractual promise of future pension payments (company pension, employee pension) to employees. – According to International Accounting Standards, such liabilities must be disclosed precisely. However, as this…

In the liquidity-providing operation with the central bank, the difference between the higher purchase price – say: 100 – and the contractually fixed lower repurchase price – say: 99.5 – by the banks, converted…

Counterpart to the statutory public pension scheme. In the funded form, the insurance contributions paid are accumulated as assets. The savings portion is managed by the insurer and invested on the capital market in…

In the past, a levy, usually annual, decided on by the respective guild assembly, which all members of the guild had to pay. – Originally to be paid in a certain number of peppercorns,…

In general, the difference between two figures that are given as percentages. – Unfortunately, there are also other definitions of the term, which is therefore not unambiguous in every case and has repeatedly occupied…

As a technical term from old-age insurance, the circumstance that, in the case of contributing insured persons, those leaving are replaced by new additions (old-age pensions are paid directly from contributions of the current…

The price movements of a negotiable instrument over a period of time. – Index performance of a submarket or of the market as a whole, e.g.: Swiss Performance Index. – Return on an investment:…

Product of asset productivity, risk profile and leverage of debt. The significance of this indicator is disputed. – See asset productivity, efficiency, return on equity, return. Attention: The financial encyclopedia is protected by copyright…

In the case of a fund in general and a hedge fund in particular, the usual remuneration of the fund management. The main incentive for a fund manager is a percentage share in the…

Unless otherwise defined, a program to motivate senior employees of an institution. At the end of the day, these plans, which vary widely in their design, amount to a substantial additional payment (variable bonus).…

A share index in which a company’s dividend payments to shareholders are deducted using a specific method, because the market value of a share falls abruptly on the day the dividend is paid. This…

For competitive reasons, the managers of capital management companies are forced to generate a high return. If this cannot be achieved with “ordinary” securities, risk appetite will increase, and very risky exposures (pick-ups) will…

Generally, a bond whose interest rate is linked to the performance of an underlying asset, often a landmark building project (any bond whose value is interrelated to the attainment of a reference asset, or…

In the older literature, for a turnaround in the market that affects business activity in an industry or in the economy as a whole. – See business cycle, rebound effect, turnaround, cyclicality. Attention: The…

The issuance of securities according to a schedule announced in advance. – This procedure is particularly widespread for government issues in the course of debt issuance and is common in Germany for federal treasury…

In older documents, officially permitted payment, especially by bill of exchange, in certain monetary units – more precisely, in individually specified bill coins – in the places of Brussels, Ghent and Antwerp. Attention: The…

In general, an administrative act by which the fundamental prohibition of a behavior is lifted in an individual case (an official permission to do something, a formal authorization or exemption). – With regard to…

Unless otherwise defined, in earlier times, the payment in cash for the document in which a traveler-especially a merchant-was assured free and safe passage through a particular territory; the fee for a charter (cart…

A security usually issued by a government agency with no intention of making a specific redemption. The only promise is to pay the interest (perpetuals are never redeemable and thus continue to pay interest…

In old documents, endowment capital was earmarked for a specific purpose and was not subject to commercial transactions in that it could neither be sold nor lent. However, the assets – primarily land, forests,…

In ancient documents, a nondischargeable payment fed by the proceeds of an asset-usually rent from land. – See exemption money, inheritance money, gilt, annuity. Attention: The financial encyclopedia is protected by copyright and may…

A pejorative term that emerged around 2010 for the proposal – put forward primarily by politicians – that the European Stabilization Mechanism be given a banking license. The ESM would then be in a…

at an auction of the central bank): A term that emerged around 2010 for banks that continuously, permanently draw on the central bank’s facilities because – they currently have no access to the interbank…

A loan granted to a person solely on the basis of his or her trustworthiness, income or financial status, without the borrower’s tangible assets being pledged as collateral; sometimes also called a blank loan.…

Unless otherwise defined, this is the total expenditure by a company on its employees in relation to its revenue (cash flow from operating activities) over a specific period. This ratio plays a role in…

Term from supervisory law. This refers to natural or legal persons who coordinate their conduct – with regard to the acquisition of securities of a target company or – their exercise of voting rights…

leitende Einschränkung): Concept from accounting as a ruling principle according to which the benefit to be derived from a piece of information must be higher than the cost of providing this information (benefits should…

Around 1975, the MXN was firmly pegged to the USD, and the Mexican government at the time was pursuing what appeared to be a successful stability policy. Nevertheless, the MXN traded with a high…

An insight into a regular occurrence gained through long observation (empirical law). In a graduated, hierarchically structured social structure such as a bank, there is a tendency for an employee to rise to his…

Petition for the opening of insolvency proceedings. For over-indebted financial service providers, such a petition may also be filed by the supervisory authority. – See Insolvency. – Cf. BaFin Annual Report 2007, p. 143…

Revenues of oil-producing countries from the international sale of crude oil; crude oil has so far been priced worldwide in USD. The producing countries use a large part of the oil revenues to purchase…

In a business or public sector entity, a cash box containing a certain amount of money to meet current minor expenses in cash (available money of a designated amount maintained in order to pay…

In older financial language often said for coinage; also in the singular form pezzo (= a small piece, a morsel). – See cash, Deut, coin, coin paradox, nasarin, pitis, means of payment. Attention: The…

Debt security backed by mortgages or a government guarantee. – In the more than two hundred-year history of this product, no German Pfandbrief has ever defaulted; it is therefore considered an extremely safe investment.…

Municipal bonds issued by public-sector lending institutions, as well as related bonds such as state land bonds, soil culture bonds, and municipal-guaranteed bonds for shipbuilding financing. – See bank debenture. – See the Bundesbank’s…

Intermediaries between capital seeking investment and landowners in need of credit, which raise the funds required to grant mortgages on real estate by issuing bonds (mortgage bonds; Pfandbriefe, mortgage Pfandbriefe). – The mortgage bonds…

Old German coin; between 1871 and 1999, the hundredth part of a mark; there is still no agreement on the exact word origin. – Share in a coppice cooperative (rotation coppice: Hauberg: special form…

In former times the chief accounting officer (the treasurer or receiver of public money) at an authority (also at the army: here he was responsible for the regular disbursement of the pay and managed…

Income that is reportable as taxable income but that does not generate cash flow for the taxpayer. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

If not defined otherwise, the occurrence of – social uncertainty, – whereby – as a rule without proof of a scientific or factual causality – economic sanction potentials (boastful threats) are built up, –…

The illegal redirection (redirect) to a fake website of a bank with the aim of intercepting username and password (an attack in which a user can be fooled into entering sensitive data such as…

When inflation rises, real wages fall (real income: nominal wage minus price increase). Companies therefore demand additional labor, which increases employment. Inflation therefore leads to more employment. – However, this conclusion is demonstrably false.…

In the older literature often mentioned magic means, with whose help one could change among other things all metals into gold and acquire thereby infinite wealth (a much sought imaginary stone believed to have…

In the older literature often mentioned magic means, with whose help one could change among other things all metals into gold and acquire thereby infinite wealth (a much sought imaginary stone believed to have…

A body of doctrine that attempts to fathom the effects of money on the “inner world,” i.e., on people’s attitude toward life, on the interconnectedness of their destinies, and on the general way of…

In the financial market, a criminal attempt – to elicit access data (such as login name, password, pin code, transaction authentication number, TAN) from a bank customer (since 2004, increasingly also from a mail-order…

The company Phoenix Kapitaldienst GmbH in Frankfurt am Main had to file for insolvency in 2005 following partly criminal actions by its managers; thirty thousand investors lost their money. The compensation procedure under the…

In older documents, a term borrowed from medicine (there: emaciation: the wasting away or atrophy of the body or pulmonary tuberculosis: pulmonary tuberculosis, involving the lungs with progressive wasting of the body) meaning greatly…

On the stock exchange, a term for debt securities with a lower par value (currently less than EUR 500 on the Frankfurt exchange; debt securities the denomination per unit of which is at Frankfurt…

On the stock exchange, a term for debt securities with a lower par value (currently less than EUR 500 on the Frankfurt exchange; debt securities the denomination per unit of which is at Frankfurt…

Older term for piecework wages (piecework: type of employment in which a wage earner is paid a fixed piece rate for each unit produced regardless the expenditure of time), especially in mining. – See…

A charge formerly levied on stock exchanges by market participants to pay for the facilities and operation of the carrier pigeons (pavedettes), which were indispensable for the transmission of prices. – A pigeon master…

A charge formerly levied on stock exchanges by market participants to pay for the facilities and operation of the carrier pigeons (pavedettes), which were indispensable for the transmission of prices. – A pigeon master…

A special levy on polluting enterprises (a tax enacted to correct the effects of negative externality). – See substitute money, sustainability. Attention: The financial encyclopedia is protected by copyright and may only be used…

The blank (blank) of a coin. – See assay stamp, billonnage, bleiling, bullion, doublé coin, coin, adulterated, coin striking, wardein. Attention: The financial encyclopedia is protected by copyright and may only be used for…

When entering or leaving ports or dangerous stretches of coastline, ships are often required to take a pilot on board; in old documents sometimes called boatswain’s mate and then also boatswain’s mate’s fee. Ship…

Abbreviation for Personal Identification Number; a personal and confidential numerical and/or letter code which the user of a payment instrument may need to use in order to verify his/her identity. In electronic transactions, the…

Formerly agreed upon in marriage contracts (in upper classes; of the higher estates), which the husband paid his wife to cover smaller current expenses, primarily for laundry and clothing, spill from spille = spindle,…

Collectively agreed payment to members of an orchestra who play their private wind instrument (bassoon, flute, oboe) and must keep it in good working order. – In older documents, a levy for the purchase…

Unless otherwise defined, the third, fourth, and possibly fifth decimal place in the quotation of an exchange rate (the smallest commonly quoted change of an exchange rate of a currency pair) – Foreign exchange…

The factual or also spatial department (the trading area; area) on an exchange, for example for wheat (that part of the floor of exchange devoted to a special branch of business, as: wheat pit).…

In the financial market, in general, the conversation of a bank with a potential client (sales talk, promotion by means of argument and demonstration). – In particular, a meeting with a customer during which…

formerly a small coin in circulation in Asia – the word is of Malaysian origin – a divisional coin (a tin coin issued by several South-East Asian states), and from hence sometimes commonly said…

In financial parlance, a specific place, a site where business is conducted in special facilities, as especially at a stock exchange (stock exchange centre; Börsenplatz), in a city (financial centre; Finanzplatz) or in a…

places, by numbers exactly as in the singular; thus, approximately: five place): In old documents generally the fourth part of a measure and in particular of a coin. From there also: 1 Ortstaler =…

Formerly a money-order (a certificate that allows the stated payee to receive cash on-demand), collectible only by messengers. Today, such checks are still sometimes used in underground banking. – See hawala. Attention: The financial…

In relation to the financial market, the rules and business regulations that are customary in a particular place. In some places, these are not written down at all or only in broad outlines. In…

The placing of financial instruments on the capital market or with a limited group of investors as part of an issue. – It follows from the definition that only those activities in which a…

The ability of an issuer to place newly issued securities directly with investors without the intervention of an issuing house. – The ability of a bank or underwriting syndicate to place an issue on…

Unless otherwise defined, the contract between a company and an institution to place an issue on the market (a contract for privately placed debt). Model contracts are available for this purpose, adapted to the…

In the financial market in general, the transfer of a credit risk or a bundle of credit risks to a third party, the protection seller (fixed rate payer), usually to a special purpose entity.…

Generally, a sequence of written statements that are meaningfully related and can be read by anyone, i.e., they are not coded. – The legal or regulatory requirement to use unambiguous language in all statements…

Term used in IAS to refer to investments from which benefits are paid to employees who have left the company. – See severance pay, redundancy pay, pension funds, pension obligations, assets. Attention: The financial…