English

In the financial market, the contingency (eventuality: the actual possibility) of losing all or part of the capital invested in a commitment. – See hedging, call option, uncovered, non-investment grade, risk, loss absorbency, loss potential. – Cf. BaFin Annual Report 2006, p. 157 f. (capital management companies must determine the risk of loss per fund… read more »

Generally, a one-time payment imposed on owners of wealth (property owners). – In particular, the collection from rich citizens of a failing euro area member state before taxpayers of other members are asked to pay. It should not be the “little man” (regular guy) in other eurozone countries who has to pay for the mismanagement… read more »

In the context of the insurance industry, an investment to secure (cover) claims arising from insurance contracts. Corresponding laws and regulations of the supervisory authorities stipulate the respective ratio. – In the context of pensions, the money accumulated and invested in a funded scheme. – See fund, funded scheme, pension fund, pension fund. – See… read more »

In Germany, on the basis of the “Law for Liberation from National Socialism and Militarism” of March 5, 1946, ordered confiscation of assets owned by the entities and private individuals affected by the law. – See blocked account. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without… read more »

The practice of even large companies, not only in the USA, to hide losses and debts at subsidiaries. The Sarbanes-Oxley Act of 2002 made this practice a criminal offense in the USA. Thanks to the vigilance of regulators, cases of loss hiding in banks and even in financial conglomerates in the EU have not come… read more »

The term used to describe non-financial assets owned by a company. These include the company’s own goodwill, patents, industrial property rights, concessions – in the case of institutions also the permission of the supervisory authority -, licenses, trademarks, brands, customer relationships, employee knowledge, research status, etc. – Due to the structural change towards an increased… read more »

Amount of money of value in nonfinancial corporations determined according to certain rules of financial accounting. – See capital ratio. – Cf. Deutsche Bundesbank Monthly Report of June 2006, p. 20 (statement of capital formation and financing of German enterprises since 1991), p. 58 f. (reservations about the statistics; failure to take intersectoral credit relationships… read more »

Unless otherwise defined, public capital includes all assets owned by the state that – have a permanent value and – yield benefits for the general public. – See assets, physical assets, social capital. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr…. read more »

The requirement that, in the event of a loss at a bank, either – all employees in the active business area, i.e. not including those employed in merely administrative activities, such as janitor services, telephone exchange or plant security (protective service), or – executives above a certain rank in the hierarchy must contribute to covering… read more »

A portfolio or pool contains securities to which third parties have rights (the risk that clear titles become comingled [= mixed] with assets owned legally by a third party). – This became apparent in many cases in the course of the financial crisis that followed the subprime crisis. When special-purpose entities and funds in financial… read more »