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

Speculation

Banking; Investment banking

Activity focused on exploiting expected changes in the market. Specifically, speculation refers to transactions entailing disproportionately high returns and risks.

Underwriter

Banking; Investment banking

Bank or intermediary that commits itself to taking up an unsold portion of a securities issue after placement.

Interest

Banking; Investment banking

Remuneration paid on capital that has been borrowed. Normally refers to monetary capital, but can also be used in the case of physical capital (rent). See also interest rate, interest days.

Asset allocation fund

Banking; Investment banking

Investment fund which applies the official investment policy of the custodian bank. Depending on the risk category, the asset allocation fund can invest solely in the money market and bonds ...

Extra dividend

Banking; Investment banking

Also: bonus. Special dividend distribution on shares and participation certificates made by a company in addition to its regular dividend, e.g. as a jubilee bonus.

Portfolio representative

Banking; Investment banking

Bank or professional asset manager who exercises the voting rights arising from shares under its custody or management in accordance with the instructions of the shareholder. The portfolio ...

Sell short

Banking; Investment banking

Stock market term for selling a security one does not own but intends to buy later at a lower price to cover the sale. Until the purchase to close the transaction has been made, the trader is said to ...