English

Divestiture financing

Loan to a company with the purpose of enabling the company to transfer – product lines, – entire divisions or – subsidiaries to a contractual partner (capital provided to a company to facilitate the sale of its interest in a product, division or subsidiary to another business entity). – Such financing is particularly important if… read more »

Earnings (salary; profit; merit)

The fixed amount of money paid to an employee, usually measured on a monthly or annual basis, not hourly, as wages. – The profit from a business, from a transaction (the total income from a transaction minus expenditures). – The recognition that a person has earned through outstanding performance above and beyond the call of… read more »

Seller’s market

A market in which demand exceeds supply. Rising prices are the result due to the First Price Law (supply and demand determine the price). – See market, oversold. 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… read more »

Remuneration (payment; [performance] fee; credit entry; gratification; abatement)

Generally, the payment of a sum of money under a contractual agreement, especially said of employment contracts: salary, earnings, salary, pay. – The remuneration for services rendered by certain professions, such as lawyers (attorneys’ fees), physicians (doctors’ fees), authors (copyright fees), or artists: honorarium, fee, royalty; also called equivalent (aequivalent) in older literature. For banks,… read more »

Current exit value

In the case of financial products with income and/or expenses in future periods – such as an insurance contract – this refers to the determination of the present value (discounted value). – Contractually agreed cash flows are generally discounted to the point of valuation as expected values, taking into account a suitable risk premium. –… read more »

Money rollin

Unless otherwise defined, the purposeful exploration of opportunities to earn money (looking for a way to earn money). 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. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

Loss limiting; short hedge

In general, any type of transaction aimed at avoiding a possible trading loss altogether or at keeping it within manageable limits. – In the case of options, the taking of a short position in the futures market for the purpose of hedging a long position in the cash market. – See replacement sale, hedging. Attention:… read more »

Forum for consumer protection

With regard to the financial market, hosted for the first time in October 2009 by the German Federal Financial Supervisory Authority and attended by around 200 experts, an event on consumer protection regulations in the area of financial services. – See Consumer Advisory Council, Consumer Complaints. – Cf. BaFin’s 2009 Annual Report, p. 243 (a… read more »

In older documents also Impegno (liability, payables)

In financial language, generally an obligation to pay of a business entity to a third party (an obligation that legally binds an individual or company to settle a debt). – A liability is a present obligation of the enterprise arising from past actions, the settlement of which is expected to result in an outflow of… read more »

Memorandum of Understanding (MoU)

Memoranda of understanding between supervisory authorities that enable cross-border cooperation in the context of administrative assistance. Supervisors agree to comply with requests for notification in investigations of insider trading, market manipulation, or other violations under their national laws. – See Multilateral Memorandum of Understanding, Nominee, Twinning, Circumstances, Significant for Assessment. – See BaFin Annual Report… read more »

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