A process in which several financial products are selected in whole or in part and coupled together in such a way that they meet the very specific concerns and goals of an investor or also of a customer seeking a loan (combining or dividing existing instruments to create new financial products, meeting distinct requests of customers). – As a doctrine, the systematic presentation of the possibilities and effects of the interaction of several financial products. – The application of financial theory combined with information theory knowledge to make decisions in all areas of the financial market (using theoretical finance and computer modeling skills to make pricing, hedging, trading and portfolio management decisions). In this sense, it has emerged as a separate branch of science since about 1980, and the related discussions have become highly mathematical. At the same time, the theory became more and more disconnected from reality, such as – social, political and legal conditions in the respective country, – globally and domestically applicable tax aspects, – regulatory restrictions, – basic economic data in the respective investment country, and thus increasingly distanced itself from classical financial analysis. – The design of financial products with the intention of removing them from the list of operations subject to disclosure requirements to the supervisory authority (constructing new financial products with the aim to evade regulation). – See investment, innovative, behavioral finance, Fibonacci sequence, financial architecture, financial mathematics, financial psychology, financial theory,
Harmonization, creïrization, monocausalism, portfolio optimization, product registration, quality control, regulatory arbitrage, theorists.
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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/