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

open outcry trading

Banking; Investment banking

Also: ring trading. A system of stock market trading where the dealers call out the bid and ask prices for each security or make them known by using hand signals. Opposite: electronic trading system.

first mortgage

Banking; Investment banking

Mortgage that has precedence over all other mortgages. Usually granted for up to two-thirds of the property's market value. See also second mortgage.

liquidate a position

Banking; Investment banking

Also: close a position, square a position. The action of offsetting an open stock exchange or foreign exchange position with the related hedge position (for example, covering securities sold forward ...

risk concentration

Banking; Investment banking

Also: concentration of risk. Loans, equity interests or investments whose size exceeds acceptable limits, thereby contravening the bank's policy of risk diversification.

mortgage-backed security

Banking; Investment banking

Abbr.: MBS. Security similar to an asset-backed security, where the underlying assets are loans to owners of residential or commercial real estate secured with a mortgage over the property.

compulsory stockpile credit

Banking; Investment banking

In Switzerland: credit granted to finance the mandatory stockpiles of essential raw materials and foodstuffs maintained in accordance with the Federal Law on Economic Planning for War and Emergencies ...

divisional coin

Banking; Investment banking

Inferior coin that need only be accepted as legal tender up to a certain amount (in Switzerland, a maximum of 100 coins). As a rule, the value of the metal contained in divisional coins is less than ...