Cyber*School

Positions or departments of a bank, which are in direct contact with the customer, to conclude business and therefore earn income on the market or from customers. These include, for example, Branches, customer service departments, securitie trading or treasury ..

Return on sales. Profit as a percentage of sales. Net profit after tax divided by revenue from a particular 12-month period. Expressed as a percentage.

The profitability of a security investement is calculated by dividing the return of the investemtn with the capital invested.

investments

In case of prolongation bonds it is possible that the duration of the bond is extended. However, this must be explicitly stated in the Terms and Conditions.

(prop trading) This is the trading of securities in its own name and for its own account.

The prospectus informs the public about the business, the company's development, the directors and the members of the Supervisory Board and must include the last balance sheet of the corporation. It also includes the publication of an issue in the authorized journal for the publication of mandatory stock exchange announcements .

Liability of the issuer, the auditor and the responsible bank for the accuracy and completeness of all information in the prospectus.

Legal obligation prior to the issuance of securities to publish a prospectus.

Covered purchase of a put. Purchase of a put to hedge an underlying asset, for which the total risk corresponds with the risk of the put premium paid. The result is the position of a synthetic long call.

abbr. Public Securities Association, today: TBMA (The Bond Market Association)www.bondmarkets.com

The standard legal designation of a company which has offered shares to the general public and has limited liability. A Public Limited Company's stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares.

kind of amortization of a bond, at which the issuer commits himself to buy back a certain part of the issue in the secondary market within a stipulated period, if the price is below a certain level (normally below par). In contrast to sinking fund the bearer of the bond may rely, that there does no amortization take place at prices above par.

ability to purchase goods and services for money

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. The writer of a put is committed to buy the underlying asset within a specified period of time at an agreed price. This is the opposite of a call option, which gives the holder the right to buy shares.

v. receiver swaption

v. call/put parity

Number of traded put options in relation to the number of traded calls.

abbr: Present Value of a Basispoint The PVBP expresses the change of the value of a financial instrument or an entire portfolio, if the interest rate level changes by 1 basispoint (1/100 of one percentage point) also called: DV01 (Dollar value of 01)