In option price theory, a measurement of how fast delta changes, given a unit change in the underlying spot price. In mathematical terms this corresponds to the second derivation of the Black-Scholes formula based on the price of the underlier.
A measure for the incremental percentage change of a warrant price with respect to an incremental percentage change of its underlying asset. A warrant's gearing is calculated by multiplying the warrant's leverage by its delta. Also known as elasticity, or referred to using the Greek letter eta.
Standard contractual conditions regulating the principal aspects of the business relations between the bank and its customers. When business relations are established, the customer is expressly informed that they are governed by the General Business Conditions. The GBC lead to a simplification of business between bank and customer because similar transactions are executed according to standard principles with respect to all customers.
The General Meeting is an official body of a stock corporation, alongside the Management Board and Supervisory Board. It is a forum where shareholders assemble to exercise their rights. It deals with matters such as the resolution of the dividend distribution as proposed by the Management Board, or the appointment of members of the Supervisory Board.
Deutsche Börse stock listing segment for companies fulfilling the transparency requirements prescribed by German law. Admission to General Standard does not require any action on the issuers' part; it occurs automatically in connection with listing on either the Official or Regulated Market. General Standard is basically the initial listing segment for smaller companies. For admission to Prime Standard, the market segment for joint-stock companies with international operations, and inclusion in one of the selection indices of Deutsche Börse, such as the DAX® , companies must fulfil more stringent transparency criteria.
The German Finance Agency (full name: Bundesrepublik Deutschland - Finanzagentur GmbH) is the central service provider for borrowing and debt management of the German federal government. It was established on September 19, 2000, and is based in Frakfurt am Main, Germany's main financial center. The company performs functions for the Federal Ministry of Finance in connection with budget funding and short-term liquidity funding for the German federal government and its special funds on the financial markets. The Finance Agency operates in the market on behalf and for account of the German federal government. See www.deutsche-finanzagentur.de/EN.
Collective instrument for securities, in particular for bond issues and shares, which - with the exception of a small number of physically held securities certificates - represents the holdings of all shareholders and bond creditors in equity and bonds of a company's specific issuance. Global certificates serve to simplify securities safekeeping and administration. In the case of new issues, global certificates are often submitted to enable trading to start even before individual certificates have been delivered to Clearstream.
Far-reaching structural changes, also affecting banking business. A visible sign of the far-reaching transformation is the increasing use of a large number of innovative financial instruments, and the steady integration of national financial markets into international ones. This latter development, in particular, has led to a sharp increase in cross-border money and capital transactions, which is widely known as the internationalization of financial markets or the globalization of banking.
The initial listing of a company's shares on the stock exchange, also known as an initial public offering. Together with the primary advantage of giving companies access to the capital market as a source of finance, publicity and image building effects as well as fiscal considerations also influence a company's decision to 'go public'.
For many centuries gold has been much coveted for making jewelry, but above all in "uncertain" times it is also prized as a capital investment - though it bears no interest. In most cases, buyers are not interested in short-term price gains, but seek to preserve value in the longer term. Over the last few decades, however, gold has been subject to strong price fluctuations. Gold bars or coins can be purchased for investment purposes. The value of gold is based primarily on its use as a currency standard or monetary reserve. In international payment business gold used to play an important part in settling international trade balances, but since 1976 it has largely lost this monetary policy role.
Now abandoned concept whereby the volume of money in circulation had to be underpinned by a corresponding amount of gold held by the government or banks; alternatively, the perception that coins had to be made of gold (gold dollars, gold marks).
The value of one currency unit in grammes of fine gold, established by a national government. Under this system, the value of gold determines the (external) value of a currency. Since gold currencies no longer exist, gold parities were artificially fixed by the International Monetary Fund. In 1971, this was replaced by IMF special drawing rights (SDRs).
These government notes ("Finanzierungsschätze") are issued regularly by the German federal government with terms of approximately 12 and 24 months. They are issued as discount notes, i.e. they are sold at an interest discount (original issue discount security) and repaid at face value. They are available for purchase to all market participants with the exception of banks. The investment amount is limited to € 250,000 per person and business day. The smallest denomination is € 500. Thy are not traded o the stock exchange and cannot be redeemed prior to maturity.
Inofficial name for the unregulated part of the capital market, not monitored by the state. Its products are not sold by banks and not traded on the stock exchange. The grey capital market is characterised by high risks, at times leading to a complete loss of investor capital in connection with illegal investment fraud or embezzlement schemes. Complex investment schemes often make it virtually impossible to track invested capital. Dubious sales techniques and emotional arguments may be used to create over-optimistic hopes and promise unrealistic returns for investors. However, it is safe to assume that a considerable amount of untaxed income (illegal earnings) are in circulation in this market. See 'pyramid scheme'.
Gross domestic product is a measure of a country's overall economic output. It expresses the monetary value of all goods produced and services rendered annually in a country, expressed in a currency unit (e.g. EUR). Gross domestic product less the depreciation it includes gives net domestic income.
Credit granted by a bank through the assumption of a guarantee on the basis of §§ 765 ff. German Civil Code or through the provision of an indemnity. This means that the bank does not provide liquid funds, but its own creditworthiness, its good name, as it were.
When it assumes a guarantee, the bank undertakes to fulfil the borrower's obligations towards a third party. It is accessory and therefore tied strictly to the underlying debt. In the case of an indemnity, the bank undertakes towards a third party to ensure a specific future result. It is abstract and therefore not tied to the underlying debt. The two forms are contingent liabilities reported off the balance sheet.
Contract by which a guarantor undertakes to be responsible to a creditor for the fulfilment of a debtor's obligation. The legal basis of a guarantee is formed by §§ 785ff German Civil Code (BGB). The contract is a unilateral obligation on the part of the guarantor. The creditor only has rights under the contract. The guarantee presupposes the existence of a principal debt, to which the guarantee is accessory. There are various types of guarantee. Particularly well known are the absolute guarantee, the non-performance or modified non-performance guarantee, and the joint guarantee. Guarantees are also issued as aval guarantees or as aval credit.
Contract in which a third party (the guarantor) provides an assurance that a desired outcome will be achieved. He also undertakes to pay compensation for damages resulting from a certain entrepreneurial act or course of action. A guarantee is a form of loan collateral, similar to a suretyship. Unlike a suretyship, however, a guarantee is abstract (i.e. not bound to a principal obligation), thereby giving the lender greater security.
These funds ensure the repayment of invested capital, or a certain percentage thereof, at the end of their maturity, thereby minimizing the capital investment risk for investors.
Term for the unlimited liability of the Federal government, the Federal states, cities and communities for all current and future obligations entered into by the banks they support, in particular savings banks and central savings banks. Alongside guarantor liability a maintenance obligation ("Anstaltslast") also used to exist. It prescribed that the public sector had to furnish its companies with the financial means to conduct their business for as long as they existed.
On July 17, 2001 the EU Commission and the Federal Republic of Germany agreed to that these two forms of state liability should be discontinued after a transitional phase. Liabilities arising before the start of the transitional phase on July 18, 2001 were covered by guarantor liability. Liabilities entered into during the transitional phase (18.7.2001 to 18.7.2005) and maturing at the latest on December 31, 2015 are also subject to guarantor liability. Liabilities entered into after the transitional phase or during the transitional phase and maturing after December 31, 2015 are no longer covered by guarantor liability. The maintenance obligation was stopped on July 18, 2005.