Investment banking

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.

Industry: Banking

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Investment banking

Cap

Banking; Investment banking

Opposite: floor. (1) Maximum interest rate on floating rate bonds. (2) Individually structured interest rate option that protects the buyer long-term against rising interest rates via a ceiling.

Efficient frontier line

Banking; Investment banking

The efficient frontier line represents the set of portfolios with the highest expected return for each given risk level (or lowest risk for each given return level). Those portfolios are called ...

Money

Banking; Investment banking

Generally accepted medium of exchange and payment in a society.

Capital investment loan

Banking; Investment banking

Credit granted for the financing of fixed assets, i.e. property, plant, machines, equipment, etc. Current assets are financed with a working capital credit.

Maintenance margin

Banking; Investment banking

Also: variation margin. Minimum level to which a margin account for a futures contract is allowed to shrink during the term to maturity.

Loans to directors, senior executives and auditors

Banking; Investment banking

Loans and advances to members of the Board of Directors, the Executive Board or the internal auditors, as well as to any companies controlled by these persons.

Ring trader

Banking; Investment banking

Also known as the ring representative. Formerly the broker of a ring bank who traded securities on a stock exchange using the à la criée method. See also ring, broker.