Cyber*School

Last day before the expiration date on which a particular option may be traded. Very often the third Friday of each calendar month.

Lending operations are all credit operations of the Bank. The Bank lends money to the customer and receives interest by the customer for that service. These transactions are recorded on the asset side of banks' balance sheets.

A shareholder letter is a letter written by a firm's top executives to its shareholders to provide a broad overview of the firm's operations throughout the year. The letter generally covers the firm's basic financial results, its current position in the market, and some of its future plans. The shareholder letter is generally written once per year and is included in the beginning of the firm's annual report.

The leverage effect is the increased profitability of equity capital caused by soft loans bonded to profitable investments. If a company borrows more, any profits or losses are shared among a smaller base and are proportionately larger as a result. Options dealings: The leverage effect indicates how the price of the option changes in relation to the base value.

An indicator that measures the level of debt of a financial institution. The core capital (Tier 1 capital) will be compared with the (unweighted) balance sheet positions and the off-balance sheet asset positions.

abbr. Loss Given Default

Equity and all liabilities (obligations) of a company that are included in the balance sheet of the Company and which are compared with the assets.

On the theory of efficient capital markets based approach that attempts to map a given benchmark in terms of their risk-return profile as closely as possible.

Interest Rate Swap or currency swap which is related to a liability,by means of a liability swap the type of the interest expense is changed from fixed into variable or vice versa

abbr. of London Interbank Bid Rate, LIBID is usually 1/8% below LIBOR

abbr. for London Interbank Offered RateThe LIBOR is the rate offerd by London banks for deposits with other banks in the eurocurrency markets. (1 week - 12 month). It is calculated by the BBA (British Bankers Association) and announced daily at 11:00 in London.

Is the capital, which banks keep as reserve in their central institution.

London International Financial Future and Options Exchange, most important european futures market, founded in 1982, www.liffe.com

abbr. of London Interbank Mean Rate, average rate of LIBOR and LIBID

If the limit is set either a maximum limit or a minimum limit is set on the purchase or on the sale of securities.

An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Because the limit order is not a market order, it may not be executed if the price set by the investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.

see interpolation

Cash also available. Amount of funds that can be withdrawn by cash or used to purchase additional securities without causing a negative balance.

Ability to satisfy all liabilities due on time. The term Liquidity also is used in the content of a classification of different instruments. They may be more or less liquid, depending on how quickly they may be transferred to cash. Liquid assets are cash, checks and bank balances without notice. Fixed income securities are also relatively liquid because they can usually be sold at any time.

Assets and refinancing commitments from which liquidity inflows can be generated in a stress scenario.