English

In principle, any company is free to make exchange offers to the holders of securities – such as shares, bonds, fund units or certificates – of another company. Custodian banks are also contractually obligated…

Pursuant to § 24 BörsG, this is the price for securities in the official market or regulated market determined during exchange hours. For commodities and derivatives, the price determined during exchange hours applies. –…

On the stock exchange, price formation is not carried out by the market parties. They merely decide what quantity they want to buy or sell or at what price they want to conclude the…

The market price for foreign means of payment (the price that one currency converts to another). – See foreign exchange, cash foot, conversion, exchange rate, forced rate. Attention: The financial encyclopedia is protected by…

Regulations governing the conduct of trading in the respective stock exchange segments – in Germany on the stock exchange: amtlicher Markt, regulierter Markt, Freiverkehr – and channels, in this case: Floor trading and electronic…

In Germany, securities exchanges have been allowed to divide the three areas of official market, regulated market and over-the-counter market into further sub-segments (part areas) since 2002 with the approval of the supervisory authority.…

Listed securities that are linked one-to-one to the price of one – for example: Grain – or several commodities. The term thus refers, contrary to what the name suggests, to issued securities. If the…

Units of investment funds that are traded on a stock exchange and thus a consistent price determination takes place; sometimes in German also called Börsengehandelter Fonds. – In other meaning said of an index…

Instead of money, a certificate mediating the exchange of goods – but how to calculate it? – certificate. Some critics of the money economy recommend such as “just”. – See money abolition, money calculability,…

Instead of money, a certificate mediating the exchange of goods – but how to calculate it? – certificate. Some critics of the money economy recommend such as “just”. – See money abolition, money calculability,…

Special form of convertible bond. In the case of a convertible bond, the investor is granted the right to exchange it for shares in the issuer at a fixed ratio. In the case of…

Special form of convertible bond. In the case of a convertible bond, the investor is granted the right to exchange it for shares in the issuer at a fixed ratio. In the case of…

Until the 19th century, a tax levied in varying amounts in individual places on the purchase or consumption of – beverages, grain, meat and other foodstuffs (victuals) and – in some places also on…

Banks and insurance companies do not offer their services at all in a geographical area or only at greatly increased fees. This refers mainly to detoriated residential areas in large cities, which are usually…

In older commercial documents, the garnishment or judicially-powered foreclosure of a debtor’s assets. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

In the case of an option, a provision in an option contract stipulating that it will be exercised automatically on the expiration date if it is in-the-money. – See execution, full, call option, settlement,…

Securities that are sold on the stock exchange in order to enable the forced settlement of a defaulting seller’s delivery obligations. As a rule, the stock exchange regulations contain special provisions for trading in…

The client requires here that his order is executed completely, in its entirety. If this is not possible, the order expires by itself (order type for a broker to execute a trade only if…

Pursuant to Section 36 of the German Securities Trading Act (WpHG), financial services companies may be exempted from the annual audit by the supervisory authority if the audit does not appear necessary in view…

In older documents, a common activity of recruiting officers (military recruiters: soldiers of rank empowered to enlist young men for compulsory military service) that was seen with disgust and classified as criminal. In return…

The extent of business activity above which institutions that are subject to disclosure requirements are exempt from the reporting requirement on grounds of immateriality. – Both the fact of exemption from the reporting requirement…

When – the buyer of a call option takes delivery of the forward call position underlying an option or – the buyer of a put option takes delivery of the put position (calling up…

The price fixed in the option at which the option holder can exercise his right to buy or sell the underlying asset (the fixed price at which an option holder has the right to…

In the context of statutory health insurance, this refers to the fact that the insurers will soon lose their reserves due to aging. – Either the contributions have to be drastically increased, according to…

In general, the exit of the investor from a transaction or from an engagement. – In particular, the exit of the founder of a (stock) company from the company. – In respect of the…

The withdrawal from an engagement and, as a rule, also the liquidation of the corresponding assets, also called recess in older documents. – The abandonment of a business area at an institution. – At…

A term that emerged primarily in the course of the government’s rescue measures for distressed banks – the term “distressed banks” was chosen as the “word of the year” in Germany in 2008 –…

In older financial terminology, an exaggerated and sober, factually hardly justifiable preference for investments of any kind abroad and especially in foreign securities. – This term does not cover foreign investments due to a…

Unless otherwise defined, a loan to a company for the purpose of investing in the fields of – expansion of the production apparatus (capital widening), – entry into and penetration of new (foreign) markets,…

A highly mathematical theory aimed at modeling actions under uncertainty in general and on the financial market in particular, and thus making them understandable. The theory is internally consistent; it is insightful and convincing…

If a central bank credibly commits itself to price stability, this demonstrably leads to a lower actual inflation rate. This is because economic agents do not prefer (credit-financed) purchases because of higher inflation expectations.…

In general, current – i.e. present – perceptions of future market conditions. Extremely important for monetary policy, especially with regard to inflation expectations. – See evaluability, code words, data, soft, survey of professional forecasters,…

Striking economic movements and strong fluctuations in asset prices often result from companies receiving imperfect signals about the future economic situation. This can lead to excessive optimism, in the course of which high investments…

Unless otherwise defined, the probability that a borrower will be unable to service the debt at his bank within one year. It is up to the individual bank to use a shorter period –…

Under IFRS 9, the probability of occurrence of risks of all types must be recognized over the entire term. The new rule applies not only to banks, but also to impairments of any financial…

Under IFRS 9, the probability of occurrence of risks of all types must be recognized over the entire term. The new regulation applies not only to banks, but also to impairments of any financial…

In general, the hope of achieving an excess of income over expenses from an investment. – The expected total return on a financial instrument at maturity. – In the case of equities, usually the…

Banking ratio, usually defined as – probability of default per customer risk class – times loss rate per transaction type and – times loan amount, to get from percentages to monetary units. – Banks…

In the calculation of risk, the expected value of all losses exceeding the calculated value at risk (expected shortfall is also called conditional value at risk [CVaR], average value at risk [AVaR], and expected…

Regulatory term used in the course of Solvency II; it refers to the present value of expected future cash flows for insurance companies. The requirement here is that future expenses for claims payments must…

the balance of expenditure and income during a financial period, where the consumption of value is greater than the increase in value. – See expense. Attention: The financial encyclopedia is protected by copyright and…

Generally, a measure of the effort or performance required to achieve an intended, planned result. The expenditure is usually expressed in monetary terms. However, it can also be expressed in units of quantity, especially…

In old documents, a frequent term for a payment to meet expenses incurred in connection with a transaction; an expense allowance. – See expenses. Attention: The financial encyclopedia is protected by copyright and may…

Payment of money to defray expenses necessary for the performance of a particular service, especially by a [public] official. – See dreidingsgeld, Gerichtsgeld, Inrotulationsgeld, Justitiengeld, Schöffengeld, Sitzgeld, Umzugsgeld, Vergütung. Attention: The financial encyclopedia is…

In older documents, often the generic term for expenses in general (anything paid out to attain a goal or accomplish an act). – In the narrower sense, it used to mean the costs of…

In the broadest sense – and thus also in tax law – all expenses or payments of a company, a private household or a public body incurred in a period of time for certain…

Essentially, the ability of a member of the management or supervisory board of a company in the financial sector to understand the business conducted by the company and to understand and assess risk planning.…

In general, the contractually agreed or legally stipulated expiration of a period. – The end of the term of a financial contract. – On the stock exchange, the date on which the option can…

In general, the contractually agreed or legally stipulated expiration of a period. – The end of the term of a financial contract. – On the stock exchange, the date on which the option can…

Said on the Exchange of all orders that could not be executed by the close of trading; unless other instructions conflict and give the order validity beyond the close of trading (all orders not…

Said on the Exchange of all orders that could not be executed by the close of trading; unless other instructions conflict and give the order validity beyond the close of trading (all orders not…

Option offered by an insurance company to invest money contractually paid out under a life insurance policy in a fund on behalf of the customer. – The particular advantage here is that the investor…

Shares in companies or shares in funds that are searching for raw materials, mainly offered on the Internet and in newspaper advertisements. – It should be noted here that the companies searching for raw…

Unless otherwise defined, a positive external contribution (regular an increase in the activity of an export). The ECB monitors and assesses the corresponding variables within the framework of the two-pillar principle. – See foreign…

A payment to companies by the state in the form of a tax abatement or direct cash payment (subsidies) to promote the sale of selected products or all domestically manufactured goods on – foreign…

Unless otherwise defined, an export guarantee is a protection granted by the state against – politically induced – payment defaults to domestic companies that deliver goods abroad. In Germany, there are various forms of…

The debiting of a Goods, such as rice, or a group of goods, for example: Foodstuffs with a payment calculated according to – quantity (specific tariff) – weight (tariff on the weight) or –…

Unless otherwise defined, this refers to the percentage of a country’s gross domestic product accounted for by exports (the percentage of goods [visible exports] or services [invisible exports] sold to foreign countries, related to…

Unless otherwise defined, the totality of exports on a value basis divided by the gross domestic product of a country. – See producer prices, industrial, research ratio, current account, unit value ratio, terms of…

Unless otherwise defined, any loss arising from any risk taken (the risk taken [= the exposure] for instance by a lender on a given borrower or asset class, and more generally via any financial…

Being exposed to risk or uncertainty via any financial instrument on any counterparty or group of counterparties. – In the case of insurance, in particular the risk potential of an insurance portfolio. – See…

Securitized option in a specific underlying, usually a stock index or an individual stock, and with a term of three to six years. The investor has the option of repayment of the capital invested…

The surcharge for the fact that a customer wants to obtain a good or service as quickly as possible, outside the normal run of business. – Especially in older documents in the meaning that…

A term that emerged in the wake of the financial crisis around 2008 to describe the desire of various EU member states – notably Hungary and Poland – to join the euro area without,…

A loan that the bank makes available to a private household in special cases – such as: Water damage, car accident, failure of the heating system – a private household immediately or very quickly…

In general, the (partial) loss of an asset not as a result of price changes in the market, but as a result of government intervention, and here again primarily through very high taxation (confiscatory…

Stocks of ECB cash managed by an ECB-authorized bank located outside the euro area. The purpose is to enable the immediate local supply of the European single currency. – See banknote management, banknote return…

The amount payable when an option is extended beyond the original contract date and is extended through a subsequent contract (a premium paid when a buyer continues an option through a second option contract…

The amount payable when an option is extended beyond the original contract date and is extended through a subsequent contract (a premium paid when a buyer continues an option through a second option contract…

In older financial terminology, a detailed, exhaustive explanation of the causes of an insolvency. This often includes a search for potentially remaining assets. – See bankruptcy, debit mass, reorganization, insolvency. Attention: The financial encyclopedia…

The catch money was either to be paid by relatives on an ongoing basis, or it was charged to the prisoner after his release as an interest-bearing debt owed to him by the prison.…

Body of the ESCB with the objective of contributing to the design and coordination of the ECB’s communication with the public. – Cf. 2001 Annual Report of the Deutsche Bundesbank, p. 142. Attention: The…

A situation in which – seen over some years – the money a country brings in from exports is roughly equal to the money it spends on imports. The criteria for entry into the…

In the case of a company, generally the use of money from third parties. – In the ECB’s statistics, all liability items of the non-financial corporations sector. – Cf. ECB Monthly Bulletin of June…

Unless otherwise defined, this refers to the degree of real economic interdependence of an economy or economic area with the world economy. – See foreign trade statistics, Balassa index, producer prices, industrial, research ratio,…

A figure closely monitored by central banks and often commented on in their reports. It is very important to pay close attention to the explanations given in each case, because some of the underlying…

the external trade statistics reported in this way are not identical with those reported in the national accounts. exports and imports. This is because the latter covers both cross-border transactions within the euro area…

The costs of a private good are generally paid by the buyer through the price. If, however, the action of a provider has advantages or disadvantages – also for others – and if these…

Formerly a ransom to avert looting and burning down (pillage and burning down). – Contractual fire insurance payment for fire damage. – See Dänengeld, fire money, freikaufgeld, Hussengeld, Manubien, Marschroutengeld, Obristen-Darlehn, Ranzion, Satisfaktionsgeld. Attention:…

Monetary amounts and assets managed by government agencies outside the annual budget appropriation of Parliament. – In the past, this was also widespread in Germany at all levels (hidden-fund nuisance; “old fund economy”), which…

In the terminology of the ECB, the exchange of goods with partners outside the euro area. – Cf. the broken-down values in the annex “Euro area statistics,” heading “External sector” in the respective ECB…

Formerly said in reference to assets accumulated by the central government (“Staatsaktiv-Kapital”; capital accessible immediately by the government) with the aim of being used in special tasks. In Germany, the state treasury remained essentially…

Formerly said in reference to assets accumulated by the central government (“Staatsaktiv-Kapital”; capital accessible immediately by the government) with the aim of being used in special tasks. In Germany, the state treasury remained essentially…

In credit insurance, an agreement under which the insurance covers the risks insured during the policy period even if the credit event, i.e., the claim, does not occur until after the end of the…

Technology introduced by the Deutsche Bundesbank in December 2002 for communications between it and customers. The main purpose of the procedure is to make statistical reporting more convenient. Attention: The financial encyclopedia is protected…