Cyber*School

Auto-Regressive Conditional Heteroskedasticity a mathematical model to forecast future variances on the basis of past variances; widely used in risk management

Organizational form of the settlement on the Vienna Stock Exchange. All completed transactions are netted and settled on each trading day and met three business days later (T + 3).

see also alternative standardised approach

see Ask rate

Limit on the ask side, the ask price

see ask rate

The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price. Opposite of the bid price.

Purchase price, including commissions and other costs used to calculate the capital gains and losses for tax purposes.

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon. The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.

An ABS is an asset backed security fixed interest security, which has payment claims against a special purpose entity (also called Special Purpose Vehicle) as its object. The payment claims are covered (backed) by a pool of receivables (assets) that are transferred to the SPV and are available for the holders of the asset-backed securities (investors) as the basis of liability. Sellers of the receivables in such a transaction are usually banks, thus making their loans tradable.

(Asset Correlation) The correlation of returns on two risky assets.

A risk-management committee in a bank that generally comprises the senior-management levels of the institution. The ALCO's primary goal is to evaluate, monitor and approve practices relating to interest and liquidity risk due to imbalances in the capital structure.

Optimized balancing of the assets, liabilities and off-balance sheet transactions among the objectives of profitability, liquidity and security within the scope of the regulatory framework

the packing of mortgages, loans and other receivables into interest-bearing securities (see also asset-backed security, securitisation)

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

a financial instrument that is collateralised by bundled assets such as mortgages, real estate, credit card payments or other receivables

The practice of matching the term structure and cash flows of the asset and liability portfolios of an organisation to maximise returns and minimise interest rate risk.

Assets include all assets of a company and are compared with the liabilities. Their composition provides information, in which values the company's capital has been invested. A surplus on the asset side of the balance sheet is equivalent to the profit of a company.

A notice received by an option writer stating that the sold option has been exercised by the purchaser of the option. When assigned, the option writer has an obligation to fulfil the requirements of the option contract. If the option was a call (put) option, then the writer would have to sell (buy) the underlying security at the stated strike price.

The Association of Austrian Investment Companies is the umbrella organization of all Austrian investment companies and all Austrian real estate investment companies. The Association represents 100% of the fund's assets managed by Austrian investment companies and Austrian real estate investment companies. Purpose and object of the legally organized association is to promote the domestic investment system as well as the comprehensive care of its members. www.voeig.at