Cyber*School

abbr. American Depository Receipt (ADR)

Deposits at notice funds have a fixed period of notice. A disposition of the funds is therefore possible only after cancellation and expiry of the notice period. In case of deposits at notice the interest rate is variable, unless stipulated otherwise. Interest will be credited after termination or maturity.

A contract where the price is depends on or is derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.

an instrument which is derived from underlying instruments,basically there are two types: forward contracts and option contracts

The term is used under Basel II's discussion of purchased receivables. Dilution risk refers to the possibility that the receivable amount is reduced through cash or non-cash credits to the obligor

Direct costs represent decentralized and centralized unit costs.

In a self-emission the issuing entity is independent endeavor to place the securities in the market.

Legislation (eg the European Community), which is addressed to the Member States and the obligation to achieve certain goals. Example: EU directives on capital adequacy

price of a bond which contains accrued interests,The dirty price is that price which has to be paid if a bond is purchased.opposite: clean price

Amount by which an instrument sells under par.

Calculation of the present value of a future amount is done in reverse direction as the discounting.

by means of the discountfactor a future value can be converted into a present value,This can be done, by multiply the future value by the discountfactor. The discountfactor can be derived from the zero-coupon rates.

instruments issued at a discount and redeemed at the nominal valueThe yield results from the difference between purchase price and redemption. Discont instruments are t-bills, bill of exchange, commercial papersper contra: couponinstruments are issued at the nominal value and paid off at nominal value plus interest

A disocunt rate is a rate where the interest payments are calculated - in contrast to normal interest rates - on the basis of the repayment value. The term discount rate is also often used in conjunction with the rate at which commercial banks may sell bills of exchange to the central bank

Equity, which is not bound by fixed assets, or the risks in the banking book and trading book.

The payment of dividends, bonuses, liquidation proceeds, etc. to the shareholders. For distributing securities, the income is collected until the date of payment and then (usually once a year) distributed. On the day of distribution the value of the underlying security decreases by the distribution amount.

Investment income (long and short-term nature), interest or dividends paid to bond and equity holders. The distribution may be paid in cash (cash dividend) or in shares (stock dividend).

a simple risk management technique that mixes a wide variety of investments within a portfolio, thus minimising the impact of any one security on overall portfolio performance

Periodic distribution of a company to its shareholders. The indication of the amount is generally done as a dividend per share. Dividends are income components, which are not reinvested by the company.

see Ex-dividend