Monthly Archives: May 2021

Meanings of Leverage Products

Leverage products enable an investor to trade underlyings with significantly lower capital than he actually has at his disposal. Leverage products include CFDs (Contracts for Difference), in German “Contracts for Difference” and forex trading (Foreign Exchange), trading in currency pairs. Leverage products were strictly regulated by the EU in 2018. Foreign exchange, stocks, indices and… Read More »

Meanings of Savings Plan

The term savings plan has been used for a long time. However, it only gained weight in the late 1970s, when mutual funds became increasingly popular. How have savings plans developed and how are they actually defined? Savings plans mean an evenly recurring savings benefit with the same contributions. Fund savings plans are considered classics… Read More »

Meanings of Spread

The term “spread” comes from economics and means the price difference between two economic variables of a unit. The price-related spread is also known as the “bid-ask spread”. Types of spreads In the banking world, a distinction is made between different types of spreads: The price-related spread The spread in the interest rate The spread… Read More »

Meanings of Gross Return

The gross return on an investment quantifies the return that an investor receives from an investment without taking any other factors into account. Depending on the type of investment, however, various factors reduce the gross return, so that the ultimate net return is significantly lower. On the other hand, the net return may, under certain… Read More »

Meanings of Equity Financing Part IV

Equity financing at the OHG The general partnership (OHG) as a private company is not for sale able shares or spend even shares. Who participates in a Supreme Court, shall be liable automatically unlimited , as with partnerships usual. Therefore it can happen that you have founded and built your company as a general partnership,… Read More »

Meanings of Equity Financing Part III

How do you calculate equity funding? The basis for any financing is the mentioned financing requirement, which has to be covered. Once this amount has been determined, it must be clarified how the company is currently valued. The company valuation is then the basis for the amount of shares in the company transferred in return… Read More »

Meanings of Deflation

While deflation appears to have a positive impact on the household budget for consumers, it is more dangerous to the economy than inflation. Deflation is the opposite of inflation and means a fall in prices. If there is no more price increase, one speaks of stagnation. Deflation can turn into a dangerous downward spiral for… Read More »

Meanings of Equity Financing Part II

Financing types of equity financing So far, we have focused on companies or individuals investing in a company by contributing in-kind contributions or equity to the company. In the following, we will take a closer look at a few different financing options. Self-financing With self-financing , profits are retained in the company, which is also… Read More »

Meanings of Equity Financing Part I

In the various forms of financing, the company open to play equity financing a central role. We have therefore taken a closer look at how equity financing can be designed, what options are available and what effects the respective forms of financing have on the company. What is equity finance? Any financing of the company… Read More »