Elimination or mitigation of negative consequences of risk through identification, analysis, and strategic measures.
A strategy aimed at mitigating the damage resulting from or the likelihood of the occurrence of an unfavourable outcome of a risky activity.
The distribution of risk among different economic agents to achieve optimal financial outcomes and mitigate individual exposure to losses.
The estimated value of assets of a bank adjusted for risk.
Definition and concepts surrounding the method of evaluating investment returns in relation to risk.
An exploration of the concept of a risk-free asset, its significance in economic theory, and its practical implications.
The rate of return on a risk-free asset, typically exemplified by short-term government debt instruments.
A method for valuing financial assets using risk-neutral probabilities and the risk-free rate of return.
Understanding the concept of loan roll-overs, their occurrences, and implications in the financial sector.
An assessment of income generated by a portfolio as a percentage of its current market value.
A US institution borrowing from the general public to provide housing finance.
A loan where the creditor has a claim on some particular part of the debtor’s assets in the event of default.
A regulatory body set up to oversee UK financial markets.
Detailed analysis and explanation of the term 'securities market,' also known as the stock exchange.
Financing a business without recourse to borrowing or share issues.
The act of completing the trade required in a contract to pay for or deliver goods, securities, or currency.
The risk that other parties may fail to fulfill their side of bargains causing potential losses.
An exploration of shadow banks—financial intermediaries that operate outside traditional banking regulations to provide credit-facilitating services.
A comprehensive entry on the ownership units of a company, detailing types, rights, and regulations.
The authorized or nominal value of a company’s shares as established in the memorandum of association.
The price at which a share can be traded, including the offer price, bid price, and mid-market price.
An index of the prices of shares of specific types in stock exchanges
The register kept by a limited company recording the names and addresses of shareholders, and the type and number of shares held.
A detailed analysis of the concept of a short position in economics, particularly in the context of securities and futures markets.
The system by which repayment of a loan involves payment of the principal plus interest calculated using one period's interest, multiplied over the course of multiple periods.
Understanding the social internal rate of return, a discount rate that balances the net present social benefits and costs of a private activity, including externalities.
An economic term referring to a loan with less onerous conditions than prevailing market rates, frequently used for financing projects in developing countries or to support economic and social development.
A detailed exploration of special deposits, their definition, background, and implications in the banking sector.
An economic cycle characterized by the rapid escalation of asset prices followed by a contraction.
Understand the meaning and implications of the term spread in economics.
Definition and meaning of Standard and Poor’s (S&P), a major US credit-rating agency and producer of stock price indices.
A screen-based dealing system that allows the display of buying and selling prices by market makers.
An instrument offering the right, but not the obligation, to buy or sell a stock at a predetermined price within a specified time period.
A corporate action that increases the number of shares in a corporation without changing the total capital base, often used to make shares more accessible to small investors.
Credit provided on terms below normal market rates to encourage specific activities or to benefit particular groups.
A comprehensive overview of the term 'surplus' in an economic context
A financial derivative in which two counterparties agree to exchange one stream of cash flows for another. This entry explores its meaning, historical context, and different economic perspectives.
A loan provided by a syndicate of banks or other lending institutions.
A comprehensive overview of systemic threats within an economic context, focusing on their broad implications and inter-connectivity in financial systems.
Explanation of the now-closed Tax Exempt Special Savings Account (TESSA) in the UK.
A country providing foreign residents opportunities for legal and illegal tax reduction strategies.
The value that determines the limit of tax-free activity in income and other tax systems.
An overview of Technical Analysis, its theoretical underpinnings, and applications in economic contexts.
Understanding tender issue in economics, its meaning and context within Treasury bills bidding and issuance.
A funding facility introduced by the US Federal Reserve System in 2008 aimed at encouraging lending to households and small businesses through support of asset-backed securities issuance.
The relation between the rate of interest paid by a financial security and the time until maturity of the security.
Definition and meaning of Tier 2 Capital within the banking and regulatory framework.
A term used in banking referring to a deposit where withdrawal requires notice or incurs an interest penalty.
Understanding toxic debt, its implications, and frameworks for analysis
An entry detailing the trade bill, often synonymous with a bill of exchange, from various economic perspectives and contexts.
Explanation and analysis of trade credit within economic frameworks
Treasury Bill - A short-dated government security issued at a discount on their redemption price, regarded as a highly liquid financial asset.
An individual or company legally responsible for administering property on behalf of a beneficiary.
A comprehensive entry on the Unbiased Expectations Hypothesis, including background, historical context, definitions, major analytical frameworks, comparative analysis, and related terms.
A security with no set redemption date; obligates the borrower to pay interest but not to redeem it.
A detailed look at underwriters in finance, their roles, and functions.
The provision by merchant banks of a guaranteed market for a new issue of shares
Explanation and analysis of the Unlisted Securities Market (USM)
A loan where the creditor has no claim on any particular asset of the debtor in the event of default.
A measure of the potential loss in value of an asset or portfolio over a defined period for a given confidence interval
A comprehensive entry on the definition and implications of variance in the realm of economics and finance.
An overview of volatility, its meaning in finance, and how it is measured.
Insight into the symbolic and functional epicenter of high finance in the United States
An entity or investor that acquires a company to save it from an unwanted takeover.
An overview of working capital in business finance, its components, and significance.
The difference between the yields on two bonds, which may vary by maturity, issuer risk characteristics, principal amount, or coupon payments.
A bond that does not make any periodic coupon payments, sold at a discount from its face value and pays the face value at maturity.
A budgeting approach that requires rebuilding the budget from a baseline of zero, focusing on organizational efficiency.
An in-depth look at the process by which European countries are becoming more interconnected in terms of trade and finance, alongside other socio-economic aspects.
An advanced financial instrument combining features of a dual currency bond, a floating interest rate, and a put option.
