Cyber*School

Indirect costs are overheads.

short-term hedging of a bond- or swap-portfolio against the market risk with futures,The advantage of this pratice is the high liquidity, the low spread and the lower costs in the future market. The remaining risk is called basis risk.

Continued price level increase or loss of purchasing power of money. It is given when the supply of goods is below the monetary aggregate demand.

Risk that the return on an investment is negatively affected by the inflation trend.

The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash or marginable securities. It ensures that no under- or over-collateralization occurs due to market movements.

On the cash market, there are two basic positions: Long equity (buying) and short equity (sales). On the futures market, there are six: Long futures and short futures, long call and short call and long put and short put.

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

One may distinguishe between 2 types of insiders: Primary & secondary insiders. Primary insiders are those who have access to inside information, because of either their profession or capital investment. Secondary insiders are persons who received or have searched inside information.

A non-public fact regarding the plans or condition of a publicly traded company that could provide a financial advantage when used to buy or sell shares of the company's stock. Insider information is typically gained by someone who is working within or close to a listed company. If a person uses insider information to place trades, he or she can be found guilty of insider trading. Insider trading is illegal when the material information has not been made public and has been traded on.

Institutional investors are referred to as financial intermediaries with high investment amounts. e.g. Banks, insurance companies, pension funds, investment companies and building societies.

The simultaneous purchase and sale of futures on different underlyings but mostly with same delivery months.

money market deal between banks

Money market transaction between two banks. In case of a given depot you have invested money and in case of a taken depot you have taken money.

Price for the loaning of capital.

The portion of the interest margin which is derived by juxtaposing reference interest rates from investments / refinancing. Under the market interest method, the difference between interest income (= the sum total of all investment transactions, valued at the respective reference interest rates) and interest expenditure (= the sum total of all refinancing transactions valued at the respective reference interest rates).

Result of interest income and interest expenditure

In the interest maturity gap assets and liabilities volume (on- and off-balance) are adjusted according to their respective interest adjustement and the corresponding reference rate in the maturity band.

another designation for interest calculation method

An interest payment that is made at the beginning of the Interest Period. Contrary interest payment in arrears

An interest payment that is made at the end of the Interest Period. Contrary interest payment in advance