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

Rate for advances against collateral

Banking; Investment banking

Also: rate for advances on securities. Interest rate applied where securities are pledged as collateral for loans. See also Lombard loan.

To the order of

Banking; Investment banking

The notation «to the order of» after the name of the beneficiary makes it possible to transfer securities by endorsement. The clause turns the security into an instrument to order (bill of lading). ...

Remittance

Banking; Investment banking

Sum of money forwarded from one person or one entity to another, either by cash or by negotiable instrument, usually in payment of an invoice for goods or services purchased.

Support purchase

Banking; Investment banking

Stock market purchase order aimed at preventing a decline in price that would be undesirable from the buyer's perspective, or at supporting the price of a security or the exchange rate of a currency.

Watering down effect

Banking; Investment banking

Also: dilution. Loss in the value of the equity paper issued by a company due to the placement of additional stock.

Clearing house

Banking; Investment banking

Also: clearing organization. Institution which settles the payment of financial transactions between members. Used to rationalise securities trading and bank payments. Local clearing houses exist in ...

Bank account

Banking; Investment banking

Also: account. Record of all incoming and outgoing payments maintained by a bank for its clients. Interest rates, charges, credit and withdrawal limits and additional facilities will vary according ...