Banking and Stock Glossary
Also separate custody. Securities held in separate custody are kept separate from holdings of the bank or third parties. Securities are held in separate custody if they are not admitted to collective custody by a securities clearing and deposit bank, or at the depositor's request. The name of the owner is noted on the strip of paper wrapped around the securities. The advantage of separate custody for the customer is that he can receive the original of the securities deposited with the bank. Opposite: collective custody.
An account owned by two or more persons or an association of individuals. A joint account may either give each accountholder the right to operate the account on his or her own ( 'or' account) or require all accountholders to act jointly ('and' account).
Joint stock corporation (Aktiengesellschaft/AG) is one of the legal forms that companies can take. In a joint stock corporation, the owners hold their stakes in the company in the form of shares. Shareholders are only liable up to the amount of their shareholding, but not with their other assets. The management bodies of the joint stock corporation are the management board (Vorstand), the supervisory board (Aufsichtsrat) and the annual general meeting (Hauptversammlung). A joint stock corporation is managed by the management board, which is appointed by the supervisory board, while the suervisory board is elected by the annual general meeting, i.e. the shareholders in general meeting. Furthermore, the shareholders also resolve at annual general meetings on important questions of key relevance to the company, such as the appropriation of profits, the ratification of the acts of management of the supervisory board and management board as well as on capital increases and mergers.
Joint untertaking by several people or companies to achieve specific entrepreneurial objectives, for example, to build a factory or power plant, or to carry out research projects. Depending on the circumstances, the cooperation can be managed through contractual arrangements or by establishing a joint subsidiary or holding company.
These are certain newspapers specified by the licensing authorities of the exchanges in which all of the notifications they are required to make must be published, for example, sales prospectus upon acceptance for trading (exchange prospectus), the dates for the general meetings, the annual financial statements (balance sheet with income statement), pre-emptive rights, drawings, etc.
These bonds have received this name because of their high nominal volume, starting from around EUR 1 billion. In principle, they are no different from other bonds with regard to their terms and conditions.
Also called high-yield bonds. These securities are issued by companies that are in financial difficulties (low rating). To compensate for the risk, the investor is promised a significantly higher return than with high quality, investment grade securities (e.g. government bonds).
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