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Investment banking

Of or relating to the business of underwriting, or acting as the client's agent, in the issuance of securities in order to assist an individual, commercial enterprise, corporation or government instution ro raise capital.

Contributors in Investment banking

Investment banking

Capital write-down

Banking; Investment banking

Reduction of capital stock and ensuing reverse split, combined with a subsequent capital increase through the issue of new shares. Serves to strengthen the capital base of a company in temporary ...

Minimum reserves

Banking; Investment banking

Minimum amount of funds which by law must be deposited by the banks with the central bank. Usually non-interest-bearing. The amount which must be deposited is generally calculated as a percentage of ...

Corporate pension fund foundation

Banking; Investment banking

Pension fund for the pooled investment of funds contributed exclusively by the employer. The invested capital can be used only for pensions or employee benefits.

Seasonal loan

Banking; Investment banking

Credit granted to bridge seasonal needs for funds as experienced by certain types of enterprises, e.g. fashion houses. Special form of working capital loan.

Theoretical value

Banking; Investment banking

Synonym for fair value (2).

Conversion parity

Banking; Investment banking

The conversion parity shows investors how much a stock will cost them if they exercise their conversion right. Conversion parity = nominal value x price / number of shares per convertible bond +/- ...

Direct investment

Banking; Investment banking

(1) Direct investment in individual securities instead of, for example, in funds. (2) Capital export, i.e. by acquiring, establishing or making a strategic investment in companies abroad.

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