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A description of how investors in the form of households, companies and institutions invest money, in the form of – theoretical models that show how this could be done in the best possible way…

Since 2010, capital management companies have been able to present their fund on no more than two DIN A-4 pages; they no longer require a more extensive sales prospectus. The aim of this provision…

All precautions aimed at preventing abuses in all sectors on the supply side of the financial market. In the course of this, the “Act to Strengthen Investor Protection and Improve the Functioning of the…

Buyers hold back from purchasing certain securities. – The term was used frequently, especially in connection with the Greek and Irish crises. Although the government bonds of both countries were yielding comparatively high returns…

Legal term used in connection with price manipulation. It is used to assess how an average prudent investor would act if he were aware of manipulative circumstances with respect to the price. – See…

Banks in Germany are required by law to inform customers, at the latest before accepting their purchase orders for securities, about the characteristics and risks of the form of investment and to draw their…

Generally, the swelling of received unpaid invoices. – Especially in a company, the accumulation of invoices received before they are paid (the gathering of invoices received prior to processing) because – organizational bottlenecks have…

In older literature – the list of receipts and expenditures from an asset given for management, certified with supporting documents. – The statement of account prepared for a certain period of time for the…

One or more items that are claimed from a debtor as a receivable. The receivable is usually based on the delivery of goods or services and is expressed in monetary units. – In Germany,…

Invoice processing time can vary greatly depending on the method of processing, the complexity of the invoice, and the practices of the specific organization. Here are a few general time frames: 1. Manual Processing:…

In older commercial documents often used instead of invoice. The employee entrusted with issuing invoices in larger houses was called an invoicing clerk. The list of invoices was recorded in an invoice book (invoice-book).…

Method to be used under Basel II to measure credit risk. – See Rating, internal. – Cf. Deutsche Bundesbank Monthly Report of September 2004, p. 78 et seq. (detailed explanation), ECB Monthly Report of…

In November 2010, EMU member Ireland was on the brink of national bankruptcy. In the wake of the financial crisis that followed the subprime crisis, the country’s government was forced to spend more than…

In numismatics, all means of payment – coins, and more rarely rods: slim cylinders of metal, as in some areas of Africa – whose substance is entirely or predominantly iron. – Pure iron is…

Term that emerged around 2005 and invaded from the American (it probably goes back to Federal Reserve Chairman Alan Greenspan) for the carefree behavior of investors who mindlessly take on high risks during an…

Term that emerged around 2005 and invaded from the American (it probably goes back to Federal Reserve Chairman Alan Greenspan) for the carefree behavior of investors who mindlessly take on high risks during an…

The servicing of customers by a bank in accordance with the Islamic principles of money management (Islamic finance: it is based on the principle of sharing both losses and profits; and the main obligation…

Three-digit designation of currency units (such as USD, GBP, EUR), developed by the International Organization for Standardization as ISO standard 4217. Although these abbreviations (used mainly in foreign payment transactions) do not replace the…

Bringing securities to the market for the first time; another term for issue. – In Germany, issues may not be made without a securities prospectus, which must first be submitted to the Federal Financial…

In general, bringing securities to the market for the first time. – In a narrower sense, the issuance of shares by a newly formed company. – See bond issues, issue price, issue, candy, bookbuilding,…

The currency in which a security is issued. At the beginning of 2005 (1999), 31 percent (20 percent) of total debt securities issued worldwide were denominated in EUR, 44 percent (46 percent) in USD…

The share that an underwriter takes in a new issue (the extent of an underwriter’s commitment in a new issue, e.g., major bracket or minor bracket). – See arranger, issuance, bookbuilding, bought deal, underwriting,…

The price at which freshly issued securities are offered to the public. In the case of shares, this must be at least the nominal value of the share (pari; at par) according to the…

In the case of a share or bond, the net amount payable for the purchase of the corresponding new issue. In addition to this amount, there may be acquisition costs, in particular the brokerage…

Anyone applying for admission to trading on the Neuer Markt segment of the German stock exchange must disclose their circumstances in the form and according to the details prescribed by the German Prospectus Act…

Fee charged to the purchaser of a share certificate of a newly issued security and, in particular, of a newly launched fund. – See premium, all-in fee, surcharge, issue price, issue, discount. Attention: The…

Tax levied on the issue of a security. – A fee or tax to be paid on discharges into the environment, based on the quantity and/or quality of discharged pollutants. Attention: The financial encyclopedia…

In older literature, this refers to an issue in which members of the company’s board of management and/or persons from supplier companies or loyal customers can acquire securities (shares, bonds), often on the quiet,…

Unless otherwise defined, an issue that is exclusively addressed to the shareholders of a company and therefore only these are admitted to subscription (the issue of securities offered only and alone to current shareholders).…

An issue that meets with more demand than supply. This is always the case when the issue price is estimated to be very low or/and investors hope for a sharp rise in the price…

Bank that puts a card into circulation. – Issuer of a security (any public or private entity that sells securities for the purpose of financing its operations). – See rejection, issuer, authorization, cash clause,…

Entity that is obligated from the issuance of a security or other financial instrument. – A bank issuing money cards, also called issuer. – Legal entity that puts money into circulation in a currency…

Brochure published by the German Federal Financial Supervisory Authority (BaFin) in the summer of 2005, summarizing the most important provisions of the Investor Protection Improvement Act of October 28, 2004, the Securities Trading Notification…

One who draws (trassiert; draws) a bill of exchange on someone; the bill creditor. – See drawee, not address, trassant. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Advance notice of the government’s or other major issuer’s intentions to issue securities, usually indicating the redemptions and interest payments due. The published issuing calendar is intended to provide investors with better disposition possibilities.…

A financial services provider specializing in the issuance and often the market making of securities. – See bookbuilding, bought deal, own issue, underwriting, placement power, precip, roadshow, underwriter. Attention: The financial encyclopedia is protected…

In Islamic banking, a contract under which one party agrees to pre-finance and construct an asset (which can be used in the long term); the necessary materials are supplied by the pre-financier (an agreement…

Part of the operational risk at an institution. Information technology risks can be divided into internal and external risks. – Internal IT risks primarily include faulty or incorrectly implemented IT systems, problems with internal…

In relation to public debt, through the issuance of more and more new securities, the practice, common in Italy until 1981, of having the central bank buy all the pieces that could not be…

A single item in a list or in accounting (balance; balance sheet, income statement); in particular, an asset and then used synonymously with item. – In foreign exchange and stock market transactions, the status…

A single unit in a set of accounting (book-keeping) figures, especially in the balance sheet. – Amount of money. – Separate asset in a summary statement. – A lot of goods. – See item,…

Term from IAS and defined there as – cash, – claims denominated in monetary amounts, as well as – obligations that must be settled with a fixed or specified amount in money. – Sometimes…