Copy of `Oesterreichische Nationalbank - Dictionary`

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Oesterreichische Nationalbank - Dictionary Category: Economy and Finance Date & country: 04/10/2008, AU Words: 3913

benchmark issue
Also called on-the-run or current-coupon Issue or bellwether issues. In the secondary market, the Benchmark issue is the most recently auctioned Treasury issues for each maturity....

beneficial owner
The individual who enjoys the benefits of owning a security or property, regardless of whose name the title is in....

beneficial ownership-interest
the entitlement to receive some or all of the benefits of ownership of a security or other financial instrument (e.g. income, voting rights, power to transfer). Beneficial ownership is usually distinguished from `legal ownership` of a security of financial instrument....

beneficiary
(USA) Anyone who receives Social Security benefits under any of the three Social Security programs - retirement, disability or survivor. Retirees make up 69% of the beneficiaries, while disabled workers account for about 14% and survivors for about 17%....

beneficiary
`beneficiaries` means the persons receiving retirement benefits;...

beneficiary
Beneficiary means the person designated in the originator`s payment order to receive funds as a result of the credit transfer....

benefit ratio
Dependency ratio = Pop 65+ / Pop (15-64) ** Employment = Employed / Pop (15-64) ** Take up ratio = Pensioners / Pop 65+ ** Benefit ratio = Average pension / GDP per worker...

benefit theory
Taxation is (a) a compulsory contribution (b) from a person or entity (c) to a governmental unit for a common interest, and (d) without reference to special benefits. (Sounds like a loss to me. )Two theories of taxation include the (a) benefit theory and (b) the ability-to-pay theory. Under the benefit theory taxes are assessed in terms of the amou...

bequest
A direction by will to give personal property to a particular beneficiary; also called a legacy. A bequest may be general and unconditional, residuary, or contingent....

Bermuda option
Like the location of Bermuda, this option is located somewhere between a European-style option which can be exercised only at maturity and an American-style option which can be exercised anytime the option holder chooses. The Bermuda option typically can be exercised on a number of predetermined occasions as stated in the option contract. Also call...

Bermudan option
A Bermudan option is a type of nonstandard American option with early exercise restricted to certain dates during the life of the option. An example of a Bermudan option would be an American swap option that can be exercised only on the dates when swap payments are exchanged. See Hull (2000) pp 459....

Bermudan option
Options which are exercisable only during a predefined portion of their life are termed Bermudan. Employee stock options often have this feature since employees usually can only exercise them in the latter part of the options` life....

bias
A measurement procedure or estimator is said to be biased if, on the average, it gives an answer that differs from the truth. The bias is the average (expected) difference between the measurement and the truth. For example, if you get on the scale with clothes on, that biases the measurement to be larger than your true weight (this would be a posit...

biased estimator
An estimator is a biased estimator if its expected value is not equal to the value of the population parameter being estimated....

bid
In the currency market, the following abbreviation for the currency exchange rate pair is used: 0.8423/28 The first component (before the slash) refers to the bid price (what you obtain in USD when you sell EUR), and in this case includes four digits after the decimal point. The second component (after the slash) is used to obtain the ask price (wh...

bid
The highest price any buyer is willing to pay for a given security at a given time; also called bid price. opposite of ask. Also, an offer of a specific amount of money in exchange for products and services, as in an auction....

bid-ask spread
The difference between the current bid and the current ask (in over-the-counter trading) or offered (in exchange trading) of a given security....

bidding syndicate
Two or more underwriters that act together to submit a proposal to underwrite a new issue of municipal securities....

bid-to-cover ratio
At an auction of Treasury securities, the dollar amount of money being bid compared with the dollar amount of securities being auctioned. A high ratio indicates strong demand and is likely to strengthen the market prices of other fixed-income securities....

Big Mac index
an index of international purchasing power...

bilateral procedure
A procedure whereby the central bank deals directly with only one or a few counterparties, without making use of tender procedures. Bilateral procedures include operations executed through stock exchanges or market agents....

bill
Bond maturing in less than one year (generally refers to the government`s Treasury Bills)....

bill of exchange
a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer. Widely used to finance trade and, when discounted with a financial institution, to obtain credit....

billing increment
The time increment used to determine the length of a call. Providers may charge per minute or per 6-seconds or some other time increment....

binary option
An option with a fixed, predetermined payoff if the underlying instrument or index is at or beyond the strike at expiration. The value of the payoff is not affected by the magnitude of the difference between the underlying and the strike price. Also called All-or-Nothing Option, Bet Option, Digital Option, Lottery Option. See also Binary Swap, Lock...

binary option
Binary options are options with binary or discontinuous payoffs. For example, a cash-or-nothing call (put), pays off a fixed cash amount if the underlying asset price is above (below) a fixed level and otherwise has a zero payoff. Asset-or-nothing calls (puts) deliver the underlying asset (or its cash value) on the expiration date if the underlying...

biometrical risks
`biometrical risks` means risks linked to human life. This includes death, disability and longevity risks;...

bivariate
Having or having to do with two variables. For example, bivariate data are data where we have two measurements of each `individual.` These measurements might be the heights and weights of a group of people (an `individual` is a person), the heights of fathers and sons (an `individual` is a father-son pair), the pressure and temperature of a fixed v...

black market
A market in which goods are sold above the legal maximum price....

Black-Scholes model
Black and Scholes were the first to show that standard put and call options can be valued by replicating them in a portfolio made up of the underlying and a cash account at a riskfree interest rate. The portfolio must be continuously adjusted to market conditions. The classical Black-Scholes model (1973) could only be used to value European put and...

blank
Piece of metal, cut or punched out of a roller bar or strip, and prepared for striking to produce coins. Alternate terms are flan and planchet....

blank endorsement
An endorsement on a check or negotiable note that names no payee, making it payable to the bearer. Also called endorsement in blank. ADict...

blind embossing
Blind embossing By using a combination of high-quality die, controlled heat, and pressure, blind embossing yields a raised image that enhances the look and feel of a printed piece. The image may be single level, multi-level, contoured, or sculptured to create a variety of effects. Paper selection is very important, since embossing actually reshapes...

blind embossing
Blind Embossing produces a raised image with a three dimensional effect without foil or ink behind it. To accomplish this process, we use hand or machine tooled brass dies. The image can be single, or multi-leveled, and can produce great detail and sculpture....

blocking-of-funds procedure
`blocking-of-funds procedure` shall mean the procedure according to which funds on deposit or available credit are earmarked and made unavailable for any transaction or purpose other than the execution of the payment order concerned, in order to ensure that the earmarked funds or available credit will be used for the execution of such payment order...

blue chip
A stock in a well-established, financially-sound and stable company that has demonstrated its ability to pay dividends in both good and bad times. These stocks are usually less risky than other stocks. The stock price of a blue chip is usually follows the S&P 500. The name `blue chip` came about because in the game of poker the blue chips were trad...

bluetooth
A technology for connecting electronic devices including telephones, computers and consumer electronics and appliaces over short distances via low-power radio signals. Does away with cables....

BNR
Abkürzung des rumänischen Eigennamens...

boiler room
For several years, regulators and prosecutors have been cracking down on obscure brokerage operations, sometimes known as boiler rooms, that manipulate initial offerings of small stocks by using various fraudulent practices to control how a stock trades....

bond
A bond is a debt security representing a loan by the buyer to the corporation or government issuing the bond; it may pay interest, or it may be discounted in price from the value at maturity....

bond
A bond is a piece of paper (or more likely a computer blip these days) that `bonds` borrowers and lenders. Think of it as a lease. Lessors receives `rent` for the use of their money and when the lease expires, they get their money back or re-lease it for a new rental amount. The borrower rents money from the lender and agrees to pay a certain rate ...

bond
An interest-paying debt obligation issued by governments, government-related entities, and corporations. Secured bonds are backed by collateral, such as real estate, machinery, etc. Debentures are unsecured bonds, backed solely by the integrity of the issuer....

bond
Bond: an `I-owe-you`. It is the obligation by a bond issuer (such as a government or a corporation) to make to a recipient (the bondholder), a repayment on a loan, at regular specified intervals. Once the period is up (normally within 30 years) the principal of the loan has to be repaid....

bond market
The market on which longer-term debt securities, i.e. debt securities with an original maturity of more than one year, are issued and traded....

bonus payment
What are bonus payments? Bonuses are declared on the sum assured (a 6 per cent bonus works out to Rs 6,000 if sum assured is Rs 1 lakh). Further, bonuses are paid out only at end of the policy term. However, they can be cashed in if you were to surrender or make claims (receive death benefits) under the policy. Remember that bonus payments will b...

bonus share
Bonus Shares- Share awards which in some cases may not vest until various performance goals are met or the employee has remained with the company for a minimum number of years....

book profit
Profit which has been made but not yet realized through a transaction, such as a stock which has risen in value but is still being held. also called unrealized gain or unrealized profit or paper gain or paper profit....

book reserves or provisions
Book reserves or provisions are sums entered in the balance sheet as reserves or provisions for supplementary pension benefits. (Source: Community statistics on the level and structure of labour costs 1996 - List, definition and breakdown of the variables, p.7)...

book-entry securities
Securities that are recorded in electronic records called book entries rather than as paper certificates....

book-entry security
Electronically recorded securities that include each creditor`s name, address, Social Security or tax identification number, and dollar amount loaned, (i.e., no certificates are issued to bond holders, instead the transfer agent electronically credits interest payments to each creditor`s bank account on a designated date). [CBOT][MIDAM] Securities ...

book-entry system
A book-entry system is an accounting system that permits the transfer of assets (e.g., securities) without the physical movement of paper documents or certificates. [GAO] The recording, transferring and processing of securities solely by electronic means. The ownership of a security is recorded in a computer file and the purchaser does not receive ...

book-entry-based clearing system
An accounting system that permits the transfer of claims (e.g. securities and other financial assets) without the physical movement of paper documents or certificates....

book-to-market ratio
The ratio of book value to market value of equity. A high ratio is often interpreted as a value stock (the market is valuing equity relatively cheaply compared to book value). This is the same as a low price-to-book value ratio. Value managers often form portfolios of securities with high book to market values....

border workers
Border workers, i.e. people who cross the frontier daily to work in a neighbouring country....

borrower
person or organization obtaining funds from another, called a lender, normally repayable with interest at a future date. An extension of credit by a financial institution, for example a bank loan, is evidenced by a promissory note, a legally enforceable agreement to repay. A credit applicant whose ability to meet the obligation is uncertain may be ...

Bosnia and Herzegovina
Geography - note: within Bosnia and Herzegovina`s recognized borders, the country is divided into a joint Bosniak/Croat Federation (about 51% of the territory) and the Bosnian Serb-led Republika Srpska [RS] (about 49% of the territory); the region called Herzegovina is contiguous to Croatia and traditionally has been settled by an ethnic Croat majo...

Boston butt
Pulled pork starts with a cut of pork commonly referred to as `pork butt` or `Boston butt`. Unlike its name may seem to imply, this is NOT cut from the pig`s ass!! It is the upper part of the entire shoulder. The shoulder is comprised of 2 cuts, the butt and the picnic. The picnic can be used for making pulled pork as well, but the butt is the more...

bottom-up approach
Bottom-up equity management style: a management style that de-emphasizes the significance of economic and market cycles and focuses instead on the analysis of individual stocks....

bought deal
An entire issue of new stocks or bonds bought from the issuer by an investment dealer, frequently acting alone, for resale to its clients. The dealer risks its own money in a bought deal, and in the event that the price has to be lowered to sell out the issue, the dealer absorbs the loss....

bought deal
Bought deal underwriting: in this type of underwriting, the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decrease before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss....

bouillon
A nutritious liquid food made by boiling beef, or other meat, in water; a clear soup or broth....

bracket creep
Bracket creep erodes paycheques as inflation pushes incomes into higher taxed brackets....

bracket creep
Occurs when inflation pushes income into higher tax brackets. The result in no increase in real purchasing power but an increase in income tax payable....

bracket creep
The movement of a taxpayer into higher tax brackets as his or her taxable income increases over time.......

branch
`Branch` means a place of business which forms a legally dependent part of a credit institution and which conducts directly all or some of the operations inherent in the business of credit institutions ; any number of branches set up in the same Member State by a credit institution having its head office in another Member State shall be regarded as...

branch
A direct investment branch is an unincorporated enterprise in the host country that i) is a permanent establishment or office of a foreign direct investor, or ii) an unincorpoirated partnership..or ii) land and structures,...or iv) mobile equipment....

breakdown by economic sectors
Direct investment enterprises (or direct investors) are classified by economic sector in line with the definitions in the Austrian Statistical Classification of Economic Activities established by the Austrian Central Statistical Office....

break-even inflation rate
The Fed has long looked at the difference between yields on nominal Treasurys and inflation-protected Treasurys (TIPS) for a sense of what investors expect inflation to be. The difference is the so-called `breakeven” rate — the inflation rate that equates returns on the two. The Fed also tries to strip out near-term inflation disturbances relat...

Bretton Woods Institutions
The Bretton Woods Institutions are the World Bank, and the International Monetary Fund (IMF). They were set up at a meeting of 43 countries in Bretton Woods, New Hampshire, USA in July 1944. Their aims were to help rebuild the shattered postwar economy and to promote international economic cooperation. The original Bretton Woods agreement also incl...

Bretton Woods system
The Bretton Woods System: Named for meeting at Bretton Woods, New Hampshire, in 1944; Established formal regimes: (a) International Monetary Fund (IMF); (b) International Bank for Reconstruction and Development (now called the World Bank); (c) the General Agreement on Tariffs and Trade (GATT) -- since 1995 known as the World Trade Organization (WTO...

bridge financing
Mezzanine financing for a company expecting to go public within six months to a year....

bridge financing
Usually a short term loan to acquire a business. The loan is paid off when permanent financing is made. Real Estate developers use bridge financing quite often....

bridge loan
Short-term financing that is expected to be paid back relatively quickly, such as by a subsequent longer-term loan initial public offering, or IPO. Also called `swing loan` or `bridge financing.`...

brilliant uncirculated
Never experienced circulation; has full mint luster; Also referred to as Mint State. Strike may vary....

bring up the rear
be at the end of the line or in the last position; Used when talking about the last in a series of people. Examples: You go ahead, I`ll bring up the rear. - Where is Tom? Is he bringing up the rear?...

British rebate
Sonderrabatt der Briten beim EU-Haushalt...

broaden the tax base
When economists speak of the tax base being broadened, they mean a wider range of goods, services, income, etc. has been made subject to a tax....

broken banknote
Note issued by a bank which has failed, but often applied more generally to banknotes which have been demonetised....

Brownian bridge
A Brownian bridge is a continuous-time stochastic process whose probability distribution is the conditional probability distribution of a Wiener process B(t) (a mathematical model of Brownian motion) given the condition that B(0) = B(1) = 0....

BRUEGEL
BRUEGEL is a European think tank devoted to international economics, which was created in Brussels in early 2005 with the support of European governments and leading corporations. Based on an innovative model that balances public and private inputs in its governance and funding, it intends to bring a new voice into Europe`s economic policy discussi...

bucket shop
Slang term for a disreputable brokerage firm....

budget amendment act
A budget amendment is an ordinance adopted by the City Commission which alters the adopted budget by appropriating additional monies to a particular department, decreasing appropriations to a particular department, or transferring funds from one department to another....

budget appropriation
A budget appropriation is a specific amount of money that has been approved by the City Commission for use in a particular manner....

budget constraint
the limitations on consumption of different goods imposed by the fact that households have only a limited amount of money to spend (their budget). The budget constraint defines the opportunity set of individuals, when the only constraint that they face is money....

budget notification
Government EDP report of spring or fall to the EU Commission (within the framework of the Maastricht criteria)....

budget report to the EU Commission
7. Before 1 March of year n, Member States must report to the Commission: their planned government deficits for year n; the latest estimate of their actual government deficit for year n-1; their actual government deficits for years n-2, n-3 and n-4; their estimate of the level of actual government debt at the end of year n-1; their levels of actual...

budgetary balance
Government revenues minus government expenditures, `surplus” means balance is positive, `deficit” means balance is negative....

budgeted permanent position
Permanent positions are defined as positions which can be filled with indidividuals holding an employment contract of unlimited duration with the ECB....

build to order
Mass customization - the selling of highly individual products but on a mass scale - is a logical next step in the progress of BTO (build-to-order), the manufacturing of goods only as and when there is an order from a customer....

built-in stability
Nondiscretionary fiscal policy refers to the appropriate changes in the levels of government expenditures and taxes that occur automatically. This is called built-in stability. A built-in stabilizer increases government deficit during a recession and increases government surplus during inflation without explicit action by policy makers....

built-in stabilizer
Institutional features of the economy which without explicit government intervention automatically act to dampen down fluctuations in employment and national income. Examples of these are (a) aggregate unemployment benefits and welfare payments, which automatically increase when unemployment increases and fall when unemployment falls, so that this ...

bulge bracket
The group of firms in an underwriting syndicate who sold the largest amount of the issue....

bulge bracket
The group of investment banking firms in an underwriting syndicate with the highest level of participation in issuing the securities. Bulge-bracket firms appear at the top of the list of issuers in the tombstone. Also a colloquial term used to describe the largest firms in any particular group....

bull market
A period of rising market prices....

bull market
When stock prices have risen steadily over several months, experts call it a ``bull`` market. When stocks trend downward for a long period, it`s a ``bear`` market. These terms were selected based on the way the two animals attack. When a bull rushes forward, he holds his head low and then gores upward with his horns. A bear, on the other hand, stri...

bull spread
Options trading strategy that benefits from a small rise in the price of the underlying. It involves the sale of one option and the purchase of another with the same expiration but a lower exercise price....

bullet maturity
one-time payment of principal at maturity....

bullion coin
Precious metal coin of high fineness, which is traded at gold value (silver value etc.). Bullion coins weigh an ounce or part of an ounce. The bullion coin most in demand in Austria is the Vienna Philharmonic coin made of pure gold (`Wiener Philharmoniker`)....

Bundesimmobiliengesellschaft
Bundesimmobiliengesellschaft (Federal Real Estate Company), set up in 1922 [sic!] in the course of the privatisation programme of the government, Vienna-based limited liability company in charge of the administration of construction and of real estate owned by the federal government; the company is completely owned by the federal government. It is ...

bundle
A bundle contains 1,000 notes of the same denomination, separated into ten equal straps....