Banking and Stock Glossary
In futures and options transactions, such as options, warrants or futures, the term "underlying" is used to refer to the asset (e.g. share, bond, index or currency) on which the transaction is based.
In banking business this refers to a consortium of two or more banks, formed for a limited time, for the purpose of placing securities. The members sign a syndicate agreement which specifies the tasks to be performed by each member.
Banks which, in contrast to specialized banks, offer the full range of banking and finanical services under one umbrella. In Germany, there are three groups of universal banks: private commercial banks, savings banks and credit cooperatives. In addition, there are specialized banks, e.g. mortgage banks, building and loan associations and capital investment companies, whose defined area of activity is not based on legal requirements but the result of historical developments. In contrast to the universal banking system, some countries have a dual banking system due to legal regulations. For example, from 1933 to 1999, it was not possible for banks in the U.S.A. to offer investment banking and commercial banking services under one umbrella.
Specialized stock market term referring to, in general, the people that directly participate in trading through buying and selling for their own account. Banks' representatives (traders), who trade on commission, are not considered part of the unofficial market. A strong unofficial market is desirable as it spreads professional traders' buy and sell interests throughout the market, which leads to greater liquidity in the market.
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