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share

Security representing a share in the capital of a public company. It ensures the owner of membership rights (the right to vote and the right to vote at the general meeting) and the right of ownership (right to share in the profit, share in capital increases or in the liquidation result).

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tape

Loans on the capital market. Bonds can have fixed or variable interest. The fractions of a bond that are designed as securities and are therefore negotiable are called liabilities or bonds.

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bear market

Price drop on the stock exchange (also called a bear market) that lasts for a long time. Often also defined so that the correction must be at least 20% and extend over at least two months. Opposite: bull market.

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participation

Long-term capital-related interest in other companies, where the economic influence or similar purpose is in the foreground. The inventory is valued at cost price at most.

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Manager

Anglo-Saxon acronym for Chief Executive Officer, Chief Financial Officer, Chief Investment Officer and Chief Operating Officer, which together make up the Executive Board.

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yield

The percentage of earnings paid by a company per stock. The dividend is determined by the general meeting at the request of the board of directors. Payments to holders of dividend certificates are also referred to as dividends.

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yield percentage

Return on a share investment expressed as a percentage: The dividend return represents the dividend paid out in one year as a percentage of the price In practice, the expected dividend return is relevant as a selection criterion, but it is not guaranteed.

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Equity

That part of the total capital owned by the shareholders and paid to them in the event of a going concern. From the shareholders’ point of view, a company’s most important task is to create a return on equity that is commensurate with the risk (cf. the bank’s equity).

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inflation

Price increase or currency depreciation. The change is indicated as the inflation rate. Often causes central banks to pursue a restrictive monetary policy (high key interest rates), which weighs on stocks and bonds. Opposite: disinflation, deflation.

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price-earnings ratio

Share price in relation to earned or expected earnings per dividend bearing share. The stock valuation ratio indicates how many times earnings per share is included in the share price. P/E can be used to compare different stocks within an industry.

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life insurance

Insurance against the financial risks of premature death or long life (pensions). It can also have a savings character.

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performance

1. Development of the price of a security. 2. A portfolio’s performance, usually expressed as a percentage, including distributions (reinvested). 3. Investment policy execution by the management of an investment association, an investment company, a hedge fund or a pension fund with a view to the investment objective.

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bonus

1. Option price paid by the buyer of an option to the writer. 2. Indicates by how many percent the price of the underlying must rise to break even. The premium shows the percentage by which an underlying asset would be more expensive if an option was bought and exercised than if the stock were bought outright. 3. Conversion Bonus .

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bonuses

The insurance premiums attributable to the financial year, which are calculated as net premiums less changes in unearned premiums.

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SST

New formula introduced by Finma in 2011 to determine the regulatory risk capital required (cf. the solvency margin).

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Swiss solvency test

New formula introduced by Finma in 2011 to determine the regulatory risk capital required (cf. the solvency margin).

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