English

A joint-stock company (Compagnie de la Louisiane ou d’Occident, or Mississippi Company for short) founded by the Scottish money theorist John Law (1671-1729), who had been working in France since 1712 as controller general…

Agreement reached in February 1987 by the leading industrialized nations with the aim of halting the further decline of the USD exchange rate and making support purchases accordingly. Nevertheless, the USD continued its downward…

Financial resources that close relatives, loved ones and friends channel into an investment to establish a small new business (small start-up during the early stage). The loan capital is usually provided in light of…

The lowest price on an exchange day for a future (the lowest price of the day for a particular futures or options on futures contract). – See option, commodity futures contract, forward contract. Attention:…

A collective term for securities with a low nominal interest rate and a redemption value far below one hundred percent. The respective issuers have issued the papers in times of low market interest rates.…

Measures taken by the central bank with the aim of keeping interest rates artificially low. The intention is to stimulate investment. However, these are primarily determined by profit expectations. In the absence of such…

A component in a portfolio that generates comparatively low returns. – An inefficient, under-performing individual employee (an employee with characteristics such as: negative attitude, incompetence, lack of initiative, stirs-up trouble, blames others [in Germany…

For index certificates, a call option with a strike price fairly close to zero. As a result, the call option is very deep in the money and performs almost the same price development as…

Term used in the ECB’s monetary statistics in connection with the refined analysis of M3. Portfolio shifts are filtered out of the M3 statistics. The resulting changes in M3 – the medium-term fluctuations –…

Term used in the ECB’s monetary statistics in connection with the refined analysis of M3. Portfolio shifts are filtered out of the M3 statistics. The resulting changes in M3 – the medium-term fluctuations –…

In the technical language of development policy, countries with a very low standard of living for the population. The International Monetary Fund and the World Bank have published various yardsticks where, in addition to…

A central bank only issues banknotes denominated in a relatively small amount. For example, until 2012, the central bank of China did not issue any banknotes with a higher denomination than 100 yuan –…

In stagecoach times, an amount included in the tax for the procurement of lubricating grease for the purpose of coating the parts of the wheels moving against each other in sliding contact. This served…

In stagecoach times, an amount included in the tax for the procurement of lubricating grease for the purpose of coating the parts of the wheels moving against each other in sliding contact. This served…

Money for investment purposes tends to flow from poor countries to rich countries rather than vice versa. – See capital flow paradox. Attention: The financial encyclopedia is protected by copyright and may only be…

A statement in the form of a theorem derived from human history by the national economist Friedrich August von Hayek (1899-1992) with regard to the state’s handling of money. Rulers – and even governments…

The concentration of a bank’s lending among a few individual or interconnected borrowers. Under Basel II, a special risk calculation is required in such cases (for there is a precise link between portfolio lumpiness…

In financial parlance, a sum that can be claimed without itemization (specification), as in a mileage allowance (milage allowance) or as a deduction from a tax liability (tax payable). – See deduction, lump sum,…

Fixed amount that a credit institution may deduct when calculating its reserve requirement under ECB rules. – See deduction, lump-sum, lump-sum allowance. Attention: The financial encyclopedia is protected by copyright and may only be…

In some German territorial states, persons employed by paper mills to collect rags required a permit with the name of the rag collector, the name of the paper mill, and a description of the…

In general, the demand for goods that – beyond the average prevailing in a country (in a society) – at a certain time – consumption habits (averaging consumer habits) conspicuously (remarkable). – See luxury…

Funds used by a private individual for expenses far beyond ordinary living (money for frivolous purchases or little luxuries; money for a bit of riotous, unruly living-it-up). – See theology of money, luxury consumption,…