English

In the case of debt instruments of any kind and bills of exchange in particular, the contractual agreement that the debtor is entitled to early repayment without incurring any penalty (a provision in a…

For banks, roughly speaking, the balance of expenses and income from operating activities. – See underlying profit, profit, cost efficiency, net fee and commission income. Net interest income. – Cf. Deutsche Bundesbank’s Monthly Report…

Transactions on the exchange which are brought about after prior agreement between two trading participants – by the immediate successive entry of similar, – but opposite orders (any purchase or sale transaction or series…

In the technical language of the jewelry sector (jewellery industry), all items consisting of only one third gold (gold 333; 8 carat); the rest of the mass is made up of copper, silver, nickel…

Metallurgically, gold (often abbreviated XAU in the international financial world), silver and the group of platinum metals, namely iridium, osmium, platinum, ruthenium, rhodium and palladium. – For investment purposes, mainly gold, silver, platinum and…

Assets of a capital management company invested in listed precious metals. According to the requirements of the supervisory authorities, such a commodity fund must purchase the metal in question. Precious metal funds have thus…

Section 14 of the German Money Laundering Act (Geldwäschegesetz [GwG]) of 1993 stipulates in detail the extent to which companies engaged in the business of trading in precious metals must take internal precautions against…

In the broader sense, rare natural stones sought after by buyers (diamonds and colored precious stones such as rubies, sapphires, and emeralds). – In the narrower sense, only diamonds. High-carat diamonds, also rare in…

With regard to banknotes issued in national currency by EMU members, the period of time within which they can be exchanged for EUR. Under the EMU Treaty, there is no time limit for this;…

In Germany, a possible method of initially publishing an incomplete sales prospectus in order to finalize the individual terms of the offering shortly before the public offering of a security. – Framework prospectuses are…

In general, any kind of remuneration (payment: remuneration, commission, bonus, in older financial language also renumeration), usually expressed in money. – Additional remuneration: a monetary allowance paid in addition to the normal remuneration, especially…

Generally, a sum to be added to a given amount. – See premium, pagament, allowance, co-payment. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

A payment which, according to special circumstances, must be made in addition to a sum already paid. – In the case of coins and medals, the strike value. – In stock exchange trading, generally…

The price of a bond is higher than its face value (face value: 100). In this case, CETERIS PARIBUS the coupon rate is higher than the market rate. Demand for such a bond will…

Any bond that is quoted above its par value (a bond which is trading higher than its par value). – A bond in which the issuer (creditor) pays a premium in addition to repayment…

A special type of forward transaction in which the buyer or seller can abandon the forward contract by paying a predetermined premium, also called a put premium. – See abandonment, distance money, regret money.…

In an insurance company, the extremely costly as to the input of personnel task of dealing with defaulting premium payers. – The industry has developed a number of steps for dealing with defaulting premium…

In the older regulations imposed by regional authorities concerning economic promotion, one of the most important measures was to favor beekeeping, which was very labor-intensive and risky. The most important measure was the payment…

Treasury bonds issued in Germany in 1951 in denominations of 10 DEM. Repayment was made at par after a maximum of ten years. Instead of interest, lottery premiums were paid out according to a…

In older documents from the financial world said for – an advance payment (payment in advance) or – down payment (earnest: money given by the buyer to the seller to bind the bargain). The…

The right of a political authority to regulate coinage by law. – In the Federal Republic of Germany, this right belonged exclusively to the federal government under Article 73 of the Basic Law. Under…

Unless otherwise defined, a measure of the change in the cash value of a financial instrument or a portfolio if the market interest rate changes by one basis point (0.01 percent). Attention: The financial…

The market price today of a cash flow that will only occur in the future, its present value. – In property insurance, the new value as the current market price of an insured object…

Term from IAS/IFRS. This term is used in IAS/IFRS to describe the situation, which is by no means rare, in which a company – has divisions in different currency areas – prepares its financial…

Payment to freelancers in general and architects in particular for the preliminary draft of a project, the amount of which is usually contractually fixed, for presentation to the client. – The payment made by…

In older financial language, the holder of a bill of exchange. – See acceptor, drawer, drawee, cavata, discount, discounting, discounting. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In older literature, the term used to describe the holding of a paper, especially a bill of exchange, until maturity. The owner of the instrument – who thereby waives discounting, passing on, pledging, etc.…

With regard to the financial market, the pressure – on market participants and above all on banks – on central banks and supervisory authorities as well as on various legislators to adapt quickly to…

A Spanish word that, strictly speaking, translates as loan. In South America, however, it now also has the ugly secondary meaning of a forced donation. North Americans, Asians and Europeans who are considered rich…

In older documents, a general term for duties of any kind that a merchant has to pay as obligatory monetary payments in the course of his professional activities – purchasing, transport, storage, sales. Attention:…

In the stock market, the short-term, buying and selling expectations of market participants with regard to the overall economy, including the (world) political situation (global political circumstances). – See valuability, sentiment, gambling doctrine. Attention:…

The equivalent value of a good in economic exchange, usually expressed in money. – From an economic point of view, the price’s main function is – to balance supply and demand on the market…

The trading price of a financial product. – The price of one currency against another currency (exchange rate). – The price at which a means of payment is actually accepted in exchange transactions, especially…

Expenses incurred by a company as a result of having to recalculate prices, including duties, mostly in the wake of inflation. The more varied a company’s product range is, and the shorter the intervals…

Unless otherwise defined, the adjustment of retail prices to changed market conditions. – The speed of adjustment is of particular importance for monetary policy, especially with regard to inflation expectations, and is therefore monitored…

A market price today that is based on the forward price for the commodity in question. This is frequently observed in grain and metal markets (situation where producers, processors, merchants, or consumers of a…

Sudden, unforeseen upward or downward price movements. – If prices are fraudulently pushed up in the financial market (painting the tape; market rigging), this is difficult to distinguish from transactions caused by market forces…

On commodity exchanges in the USA, the smallest upward or downward price fluctuation allowed by the exchange authority for a futures contract (the minimum amount that the price of a contract can fluctuate upward…

In the financial market, the phenomenon that in phases of pronounced – even global – share price changes, a synchronization can be observed within all securities. Investment diversification can hardly protect against such a…

Unless otherwise defined, the convergence of prices for goods and services in a common currency area, especially in the euro area. – In a common market, the prices of similar, internationally tradable goods must…

A transaction is charged to the customer by a bank or broker at a price far higher than the stock market price plus the usual costs. – See round tripping, sham transactions. Attention: The…

Unless otherwise defined, the return of prices to a level prior to extraordinary inflation. – See deflation, disinflation, inflation. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

In Germany, this was introduced on stock exchanges in the official trade segment until 2002. From then on, it is left to the stock exchanges in their respective stock exchange rules and regulations how…

Unless otherwise stated, in financial markets, the difference between the futures price and the spot price (the value differential between a call option and a put option). Spot price minus futures price = basis.…

The purchase of one futures contract and the sale of another, mainly on commodity exchanges, with the aim of making a profit from price differences between the two contracts. – Such arbitrage transactions may…

Efforts to find the best possible price for a newly issued security in terms of sales. This primarily involves analyst studies by the issuing banks, pre-marketing and bookbuilding. At the end of the individual…

A seller charges individual customers different prices for the same product. This is considered an abuse of market power and is prohibited under Section 19 (4) and Section 20 (1) of the Act against…

On the stock exchange, the price of a security – which many buyers want to buy from a single seller at the same time or – which several sellers want to sell to a…

The level of prices perceived subjectively by market participants (subjective: it is the opposite of objective and applies to reality as it is perceived, while objective relates to reality as it exists) on a…

On some mainly: US financial and commodity exchanges established brake. For example, if Sorgho futures had a closing price of 5.50 USD the previous day, and if the price limit is 0.30 USD, the…

Price change in which a certain price range has been exceeded. According to an old stock market rule, a price gap is normally soon filled again. – See price range, price slump, hole in…

In central bank terminology, the liquidity (M 3) in the economy not yet absorbed by price increases and/or economic growth. Economy. The price gap widens/ narrows if real money growth is above/below trend growth…

In statistical terminology, a price index in which quality alterations of the products covered are included. Computers are often cited as an example here. A standard PC today is a completely different product than…

The price of a security on the stock exchange suddenly soars. – Today, such movements are closely monitored by the stock exchange supervisory authority and examined for possible price manipulation. But financial journalists who…

The average level of all prices in an area, i.e. a spatially defined space such as a state, country or EU. Because the prices of all goods – of which there are several million…

Proposed policy for a central bank in which it does not set a specific numerical target for the inflation rate, as is the case with the ECB (inflation targeting). Instead, it sets a target…

In older financial terminology, a list of securities admitted to trading on a stock exchange and whose price is fixed there. – List of prices of securities on one or more stock exchanges, usually…

On the stock exchange, the prevention of major random fluctuations in price formation by – selling securities or commodities on the product exchange or foreign exchange on the currency exchange in the event of…

The suspension of trading in a security or commodity for a period generally up to twenty minutes in the event of market disruptions as provided for in the Exchange Rules (price quotes that are…

On the stock exchange, all prices within the high and low price range at which transactions actually took place during a certain period – day, week, month, term of the contract. – However, this…

On the stock exchange, the difference between the highest and lowest prices at which a particular item has traded over a certain time period. Unless otherwise stated, the reference time is a trading session.…

Possible loss of an asset as a result of market price fluctuations or changes in the exchange rate. – See bond, currency convertible, back-to-back loan, earn-out clause, contingent loss, hedge. Attention: The financial encyclopedia…

The possibility of losses – in both on-balance sheet and off-balance sheet positions – arising from movements in market prices. – See defaveur, market risk, market risk stress test, commodity price risk. Attention: The…

At the ECB, the year-on-year increase in the Harmonized Index of Consumer Prices by two percent over the medium term. The reference to the Harmonized Index of Consumer Prices makes it clear that consumer…

If not otherwise defined, this refers to the fact that the first stock market price of a security is higher than the issue price. – See issue yield. Attention: The financial encyclopedia is protected…

The deviations of prices from the mean in an economic area. Knowledge of differences is important for monetary policy. – See inflation differentials, composition effect, price convergence, real interest rate argument, inflationary pressure, sectoral,…

Levy with tariff-equivalent effect. In certain cases, and especially in the case of agricultural products, the levy is intended to equalize the difference between the import price of a product and the domestic price,…

In older documents, for a table of items for sale with their prices, also a price list for the services of a bank. – In Germany, banks are required by law to prepare a…

price-profit ratio, PPR): The relationship between a company’s stock quotation on the stock exchange and its earnings; unless otherwise defined, it is based on earnings per share before taxes and a twelve-month period (price…

Unless otherwise stated, this means – the ratio of the current price – divided by the earnings per share (EPS) of the last two quarters – plus the estimated earnings per share of the…

For companies, the market value divided by the cash flow as the net inflow of available funds and expressed per share. The KCV is widely regarded as a popular ratio for valuing a share.…

A ratio in which the current share price is divided by the sales per share. Sales per share are calculated by dividing the company’s sales in the past twelve months by the number of…

Market price influenced by public authorities in any way. The main means are: – regulation of markets, – special tax treatment, – ceiling price regulation, – subsidies, – special levies, e.g. in the form…

In English, a common instruction to a broker in a stock exchange order. – See price limit order. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

A reported price that, due to dishonest practices (unfair machinations), does not correspond to the price that would have resulted from the free interplay of supply and demand (a price that has been affected…

A term used on the stock exchange to indicate that no trades took place at the quoted price because – there were no sellers or buyers, or – for other reasons, it was not…

The price at which a firm will buy or sell a commodity to customers (the announced or advertised price indicating what a firm will pay for a commodity or the price at which the…

The ability of a company to determine supply prices to a certain extent. This is primarily possible due to – a (quasi)monopoly, such as OPEC, – an excellent unit value ratio, which expresses very…

Unless otherwise defined, this refers to a government’s net lending/borrowing minus interest payments. – See government debt, Stability and Growth Pact, tax competition, sustainability gap, constitutional article one, debt ratio, public, Wagner’s law. –…

A new unit of measurement introduced in 2014 within the national current account. Primary income comprises income from employment and property, together with production and import expenditure, as well as subsidies and rents. –…

Cash and demand deposits at the central bank. – See base money, monetary base, liquidity, M1. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

The trading of securities or other financial instruments in the initial placement. – See issuance, issue, secondary market. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Roughly defined as the positive difference between government revenues and expenditures; a negative difference is referred to as a primary deficit. A primary surplus thus means that revenues are sufficient to finance core expenditures…

Financial service providers that are wholly or predominantly focused on servicing hedge funds. These are primarily – the provision of debt capital against collateral to finance margin and variation margin calls on futures markets,…

In older financial parlance, a bank that enjoys the highest standing. – See financial services institution, financial institution, monetary, institution, credit institution, bogus bank. Attention: The financial encyclopedia is protected by copyright and may…

In the U.S.A. and Canada, a standard interest rate paid by first-class borrowers (companies that have proven to be ideal debtors in the past) to their banks for short-term loans. In the USA, the…

The interest rate or rates set by the central bank as a benchmark for financial transactions in general, which should provide market participants with guidance for their operations. – Within the Eurosystem, these are:…

Trading segment on Deutsche Börse with very high reporting requirements in particular. This quality segment is also open to foreign issuers. – See Blue chips, normal values. – Cf. 2002 Annual Report of the…

An earlier compulsory levy to ensure a dower befitting a princess when she married. – See apanage, bride money, marriage money, vocations money. Attention: The financial encyclopedia is protected by copyright and may only…

An entity that acts on its own behalf, with its own funds and at its own risk. – See Proprietary Trading, Prohibition of Proprietary Trading. Attention: The financial encyclopedia is protected by copyright and…

Actions and decisions of management conflict with the interests of the principal or owners. This can lead to insolvencies with far-reaching consequences even for the stability of the global financial system as a result…

A lender – usually the state – only makes a payment if the borrower also provides the corresponding funds. Mainly applied in the context of EU structural aid (Title XVII of the EU Treaty).…

At the ECB, the fact that the ECB uses the national central banks as far as possible to conduct its operations. This ensures that local banks have direct access to the Eurosystem. – On…

In Germany, legislative projects of the Bundestag are subject to this principle: at the end of a legislative period, all procedures that have not yet been completed lapse. A new government has to reopen…

In the context of money supply, this refers to the fact that the demand for money is determined by the economic process (endogenously). The level of demand is primarily determined by – the overall…

An authoritative concept in the philosophy of money. It means that money represents a pure form of exchangeability: it expresses the side, the property of things, which makes them suitable for economic exchange. Money…

The principle that money of stable value is the most important prerequisite for the modern social and economic order, i.e., that the measuring property of money must be preserved at all costs. Because a…

In the jargon, those employees in an institution who – generally shirk work and – especially in the front office area, make off with the dust when there is a stampede of customers. Fortunately,…

Unless otherwise defined, in the euro area this refers to the obligation of creditors to share in the losses of a bank in the event of bankruptcy before these are passed on to the…

Unless otherwise defined, the assets owned by private households, and here primarily residential property, and securities. – See building land assets, consumer durables, movable property assets, private banking, wealth, wealth effect, asset prices. –…