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See World Bank. 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.…

A company set up especially in offshore financial centers with the purpose of conducting certain business outside the domestic company. Common to all IBC’s are the dedication to business use outside the incorporating jurisdiction,…

Independent organization of the world’s securities trading participants, founded in 2005 and headquartered in Zurich. Its main objective is to determine globally valid practices on the financial market and to advise authorities on the…

Institution founded in connection with the London Club in 1983 by globally active banks – also memorably called the “banks’ self-help group” – based in Washington, DC. Its main tasks are: – to develop…

A body established in 2002 with the task of developing explanations of IAS. The individual interpretations are given a number (e.g. IAS 39) and published. Attention: The financial encyclopedia is protected by copyright and…

standards in the field of accounting): A set of accounting standards for capital market-oriented companies, also in Germany – as in the EU as a whole – that has been mandatory since the beginning…

in general, the financial assets and liabilities of an economy vis-à-vis other countries at a given date in the form of stock data valued at their market price. – Stock statistics collected and observed…

Regulatory term describing the goal of banking supervision that is as uniform as possible worldwide in order to minimize distortions of competition. – See Supervisory Authority, Committee on Banking Supervision, International Business Company, International…

Regulatory term describing the goal of banking supervision that is as uniform as possible worldwide in order to minimize distortions of competition. – See Supervisory Authority, Committee on Banking Supervision, International Business Company, International…

An institution founded in 1945 and headquartered in Washington (DC., USA). – Its (main) statutory tasks are – to promote monetary cooperation and exchange rate stability, – to ease and abolish exchange controls, –…

In the slipstream of the turmoil surrounding the subprime crisis, a much-discussed proposal arose that the IMF should be transformed into a monitoring body for financial crises (more precisely, into a database and information…

An institution founded in the summer of 2004 with the aim of setting uniform standards at the international level in the area of supervision of occupational pension institutions. The IOPS is headquartered in Paris,…

The IPI is a standard document introduced in 2002 for automated payment transactions via several payment systems in Germany and abroad for all currencies. The biller sends the IPI document together with the bill…

ESCB body composed of high-ranking representatives – usually the vice presidents of the individual central banks – with the (main) objective of assessing international financial developments with regard to their implications for the euro…

Conference program sponsored by the ECB, the Board of Governors of the U.S. Federal Reserve, the Center for German and European Studies at Georgetown University, and the Center for Financial Studies at the University…

World’s largest stock exchange for trading in equity options, based in New York. ISE was acquired by Deutsche Börse AG (85 percent) and the Swiss Stock Exchange (15 percent) for USD 2.8 billion in…

A twelve-digit international identification number used to identify securities issued on the financial markets. As of April 2003, it replaced the securities identification number (WKN) introduced for Germany in 1955. – See securities number.…

Since 1969, the umbrella organization of institutions and traders active in the Euromarket with the primary task of defining market practices (ISMA standards; ISMA rules). In July 2005, ISMA and the International Primary Market…

Uniform rules for auditing worldwide. These are drawn up by the International Federation of Accountants (IFAC), a global association of auditors with administrative headquarters in New York. IFAC was founded in Munich in 1977…

An association founded in 1985 with over 600 members worldwide with the aim of establishing and further developing binding regulations for trading in derivatives. The extensive, detailed and constantly updated set of rules forms…

Unless otherwise defined, internationalization in the financial world refers to – the degree of global orientation of a portfolio or – the activities of a domestic bank abroad (cross-border financial services); it can be…

A conventional bank with a branch system that conducts part of its business via the Internet either directly or via a specially established subsidiary through an appropriately designed site (Internet counter, transactional website). –…

A bank that conducts its business exclusively via the Internet; in contrast to – a bank with a branch system, which has accessible business premises or car counters (brick and mortar locations) and –…

The distribution of securities via the Internet. – See Internet offerings. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

On the part of customers, the opportunity to use a bank’s services via appropriately designed pages on the Internet (opportunity which permits customers to conduct financial transactions on a secure website operated by their…

If securities are also offered to investors in Germany via the Internet, these offers are also subject to the provisions of the German Sales Prospectus Act (Verkaufsprospektgesetz) in addition to the provisions of the…

Payment for online purchases (internet purchases). In contrast to stationary trade, Internet purchases are predominantly paid for in cashless transactions. Various payment methods have emerged. These are monitored by the central bank. – See…

Special websites where people can exchange information of any kind (web-sites that provide an online exchange of information between people about any topic). – If, in the worldwide data network, buy/sell recommendations for assets…

The possibility of freely switching from one e-money system to another (the possibility permitting participants to conduct and settle payments across other systems while continuing to operate only in their own respective systems). –…

In older documents, the customary or – as at some fairs – officially fixed fee for translation from one language into another. – Interpreter’s fees were charged both for written documents and for direct…

A corporation in which another company holds at least twenty-five percent and thus a blokking minority; there are also other definitions with regard to the percentage share. – In older publications, a company that…

Additional public debt above the two percent of GDP mark in the amount of one percent has been shown to increase interest rates by an additional fourteen basis points on average. – This empirical…

Additional public debt above the two percent of GDP mark in the amount of one percent has been shown to increase interest rates by an additional fourteen basis points on average. – This empirical…

Government borrowing without increasing infrastructural assets – such as schools, hospitals, transport routes, communications facilities – and thus at the expense of future generations. Sooner or later, this leads to inflation and stagnation; proper…

In the case of fixed exchange rates, the lower and upper price limits for the domestic currency on the free international capital market at which the central bank intervenes in a regulatory capacity. A…

The possibility, used primarily by U.S. banks, of prettifying balance sheets between quarterly dates, namely inflating them, but using repo transactions to bring them down again in time for the regulatory reporting dates. This…

Planned technical and organizational measures within an institution aimed at preventing damage that may be caused by its own staff or malicious third parties. – See Minimum Surveillance requirements, whistleblowers. Attention: The financial encyclopedia…

Planned technical and organizational measures within an institution aimed at preventing damage that may be caused by its own staff or malicious third parties. – See Minimum Surveillance requirements, whistleblowers. Attention: The financial encyclopedia…

Under Section 10c of the German Banking Act, loans within a group of institutions or financial holding companies may be exempted from risk calculation if the loans in question are not booked to the…

Credit granted with a maturity of less than one business day. – The ECB generally grants intraday credit to eligible counterparties for payment transaction purposes – and on the basis of appropriate collateral. Attention:…

A loan – in the narrower sense of the central bank – with a maturity of less than one day (credit extended for a period of less than one business day). The importance of…

Unless otherwise defined, the price movement achieved between the opening and the closing of the trading session on an exchange, either in relation to an individual security or, on the commodity exchange, in relation…

The supposed value of an object, regardless of its actual price at any given time and independent of its value to humans. – The estimate of the value of an object based on the…

The supposed value of an object, regardless of its actual price at any given time and independent of its value to humans. – The estimate of the value of an object based on the…

One-time or ongoing payment for placing an item in a magazine – this in older documents also ambar and ambarre -; the warehouse fee. Attention: The financial encyclopedia is protected by copyright and may…

Loans to agricultural enterprises for the purchase of auxiliary materials and breeding cattle. Such loans were of great importance during the general starvation after World War II (1939-1945). – See crop support loan, landscape,…

Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a certain period, usually a fiscal year. It is a key indicator of a…

In relation to the financial market – in a very broad sense, any input of owned or borrowed money with the aim of profit making and roughly corresponding to the term engagement. – In…

A committee composed of the various experts of a capital management company, bank or insurance company that meets regularly to discuss purchases and sales of securities and other assets (such as investments, precious metals,…

An investor feels uncertain about the closer or further consequences of an investment in the various sectors of the global financial market. He therefore decides to invest where his subjective uncertainty is lowest. –…

Generally, the conversion of money into assets, i.e. any kind of financial investment. – Money used for the – construction, – expansion or – improvement of tangible assets that serve to generate future income…

According to the – suffice it to say! – definition in § 1 InvG, “assets for collective investment that are invested in assets in accordance with the principle of risk diversification.” – According to…

In the USA, in the course of the separation banking system introduced by the Glass-Steagall Act in 1931, institutions that have focused entirely on capital market business and do not also engage in lending…

Services provided by a bank in the issuance of shares and bonds. Traditionally, issues are brought to market by several banks together (syndicate business); in the euro area, agent banks (institute responsible for maintaining…

At banks, all financial instruments held – to maturity or – for longer-term investment purposes. – See securities holdings. – See Basel interest rate shock – ECB Monthly Bulletin, February 2004, pp. 77 ff.…

The – bringing together of partners or even just – the proof of transactions concerning the acquisition and sale of securities, money market instruments or derivatives. In Germany, the relevant services are subject to…

A group organized as an association or partnership (GbR; civil law association) with the aim of profitably investing the money collected through one-time or regular payments by members (a group of individual investors who…

The excessive (usually, more than thirty percent) accumulation of a particular asset in a portfolio. Usually, more than thirty percent of such a concentration (an asset making up a substantial part, usually, more than…

As defined by the supervisory authorities, the provision of personal recommendations to a client either at the client’s request or on the initiative of the investment firm, relating to one or more transactions in…

A long-term loan to – build (construction; construction of factory facilities), – expand (capital widening; enlargement of production capacity) or – improve (capital deepening; acquisition of more efficient machinery) physical capital. – See loan,…

The effort to protect against sharp changes in the price of securities (and assets in general) by dividing them into different securities. Various portfolio theories model such diversification, some of which are highly mathematized…

A common term, but one that does not appear in regulatory law, for a financial services provider that provides investment services to investors on a professional basis (any entity whose regular business is the…

A term commonly used in Switzerland for the assets of a capital management company and also officially introduced in the 1995 Investment Fund Act (IFA). Attention: The financial encyclopedia is protected by copyright and…

In general, assets of a capital management company for which unit certificates listed on stock exchanges are issued and participation is thus open to everyone. – Investment funds that are specifically tailored to private…

Special fund (capital stock) of a capital management company, which is composed of funds raised mainly from institutional investors in order to invest these funds according to a defined plan. AIFs include private equity…

Asset, usually a marketable security, recommended for purchase by rating agencies according to a grading scheme (between AAA and BBB). The credit quality of both debt and investment-grade securities is considered comparatively high (debt…

The use of money (monetary view) or factors of production (real view) to – construct (construction, installation), – expand (expanding, widening), or – improve (improving, upgrading) the capital stock. – See financial investment, investment.…

The responsibility for an investment with the obligation to be personally liable for any losses. – It is indisputable that any kind of investment is made more carefully, the more the responsible person is…

Unless otherwise defined, the maximum amount agreed between a financial service provider and the customer that may be used for investment within a certain period of time. Corresponding contracts often also include investment objectives…

If not defined otherwise, this term refers to purely logically based advice to an investor on how to set up his portfolio in the most favorable way. The instructions, which are usually highly mathematized…

The deliberate, planned conversion of money into any form of investment from which one – expects a return or – at least the preservation of the purchasing power of the sum invested. – The…

Waiting to make an investment decision generates indirect costs. If one is not present in the market, the opportunity to generate a return is lost. – The risk of running into a crash while…

(Large) investors find too few (normal, healthy) offers on the financial market and as a result turn to more fraught with risks; their risk appetite increases and with it the risk of suffering losses…

Guidelines that are established when building up assets according to the requirements of security, risk diversification, value preservation, profit generation, return and any other objectives, such as sustainability (the guiding principle that governs how…

A provider combines, bundles various assets and combines them into a single offering for the customer. This can be securities, insurance or other financial products. – The EU Commission in 2012 presented a draft…

Term for real estate held by a company solely as a profitable investment, i.e. not intended from the outset for the company’s own business use. – See financialization, real estate bubble. Attention: The financial…

Generally, the ranking of an asset, which varies from one asset to another, to serve as a safe investment of stable value or to stand out as an investment. – A security that has…

Unless otherwise defined, the share of investments in the gross domestic product. Monitored by central banks, especially with regard to – financing; the amount of all loans for investment should not exceed forty percent…

In general, the activity of technical analysis. – In particular, the banking departments that prepare – internally for the institution or – generally for the clientele proposals for the purchase or sale of assets.…

A possible loss from converting one’s money into one asset or into several assets. Such a risk of loss (risk of losing) always exists, with every kind of investment; it is to be attributed…

Share certificate in the assets of a capital management company. – German legal terminology only uses the term “Anteilschein” in the German Capital Management Companies Act, while the term “investment share” is used in…

The preservation of the value of an asset denominated in monetary units. This can be achieved comprehensively, for everyone, only through monetary stability, namely by preserving the measure property of money. – Ensuring that…

In one area, capital investments are not made in the domestic monetary unit but in a foreign currency. The reasons for this are corresponding expectations regarding the return and risk of the investments in…

In general, the suggestion to private investors to (not) invest in certain securities. If this is done publicly and on a businesslike basis, it constitutes investment advice requiring a license in Germany. – In…

Percentage of the shareholding in a listed company which, if reached, triggers a reporting obligation to the supervisory authority. Since 2010, in addition to – directly held voting shares and – unilaterally binding options…

Pursuant to Section 1 of the German Investment Act (InvG) of 2003, a public investment fund managed by a capital management company. An investment fund collects capital by issuing fund units and invests it…

In addition to the word “investment company,” a common term for a capital management company, namely a company that launches and manages investment funds. – See capital management company, Capital Investment Code. Attention: The…

An investment management company authorized to market funds in the EU that complies in all respects with the requirements of a relevant EU directive. In addition, there are also non-UCITS-compliant investment funds. By the…

Unflattering term for a special purpose vehicle, namely an entity into which assets are contributed in order to subsequently securitize them in an appropriate form. – See assets, illiquid, conduit company, variable interest entity,…

A term frequently used from around 2000 onward, but which does not precisely define an investment. In most cases, it refers to structured financial products based on fixed-term deposits with an interest rate not…

Investment placed with a (foreign) institution in the name of a bank, but for the account and at the risk of a customer. Usually, such contracts have a fixed term, a certain (minimum) amount…

Investment, especially preferred by some hedge funds, in assets which – are difficult to convert back into liquidity, such as a work of art, – whose exact value is difficult to determine, such as…

The investment in securities of such companies and capital management companies which – in addition to their actual business purpose – primarily support charitable, charitable or social, non-profit projects or – in their articles…

In financial statistics, investment includes both real investment (construction, acquisition of real and personal property) and financial investment (acquisition of equity stakes, granting of loans, use of guarantees and payments to other sectors for…

Generally, an investment made in an area where no previous facilities exist; otherwise this would be a brownfield investment. – Investment in agriculture and the environmental sector, broadly understood to include environmental technology and…

Sometimes said of expenditures of a company especially for planning, research, market development, organization, public relations and advertising. In contrast, one speaks of material investment (physical investment). – See Intangibles. Attention: The financial encyclopedia…

Conversion of money into assets, made by a single person. – Monetary or even nonpecuniary (nonmonetary) benefits – such as the appropriate and – because at the most purposeful – convenient night’s visit) of…

Act that came into force at the end of 2007 with the aim of strengthening the international competitiveness of the fund industry through an appropriate regulatory and supervisory framework. The act simplifies the rules…

A set of regulations that came into force in Germany at the beginning of 2004, primarily recasting the law on capital management companies, combining it with the Foreign Investment Act and in some cases…

Anyone who places money on the financial market with the intention of making a profit (someone who commits money in order to gain a profit). – In German, the word “Investor” is usually associated…