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

Turnover tax

Banking; Investment banking

Stamp duty levied by the Swiss government on the purchase and sale of Swiss and foreign securities by Swiss securities dealers.

Time value (of an option)

Banking; Investment banking

With options, the difference between the price of an option and its intrinsic value.

Blank draught

Banking; Investment banking

A draught passed on by the drawer with certain details left blank. The recipient is entitled to complete the draught himself on pre-agreed terms. Liability remains with the drawer.

Custody charge

Banking; Investment banking

Also custody price. The annual fee charged by banks for the custody and administration of securities.

Hedge ratio

Banking; Investment banking

Ratio of options or futures to the number of underlyings at which the portfolio is fully hedged. The hedge ratio is the reciprocal of the delta.

Correspondence cheque

Banking; Investment banking

Cheque provided with a separate tearsheet designed for writing messages to the recipient or beneficiary.

Note-issuing bank

Banking; Investment banking

Also: bank of issue. Bank vested with the right to issue bank notes (note-issuing privilege). In addition to performing this key historic function, today's note-issuing banks are also responsible for ...