Weekly Finance Term – CW 3

  The IRR Rule – Internal Rate of Return   The underlying principle is the internal rate of return. This rate measures the profitability of potential investments and, therefore, is a good guide for decision-making.   Computing the internal rate of return   The internal rate of the discounted rate. The first step of the … Continued

Weekly Finance Term – CW 2

Nostro Account   The term “nostro account” describes the situation in which a bank holds a foreign currency account in another bank. Nostro descends from the latin word for “ours” and is used to name a situation in which to bank institutions are sharing an account. The opposite is “vostro account”, describing how a bank refers … Continued

Weekly Finance Term – CW 51

Clearing The process of clearing is reconciling purchases and sales of various futures, options, securities, and other trades from one company (usually a financial institution) to the other. The companies executing those transactions are called clearing houses. Those clearing houses function as an intermediary for buying and selling transactions. They act as counterpart for both, … Continued

Weekly Finance Term – CW 50

Interest Rate Swap Generally there are two ways of paying interest. The first is to have a fixed percentage rate which is due at a specific date in time. The second way is to have flexible amount of interest, due at some date in the future. In the first case the amount payable is fixed … Continued

Weekly Finance Term – CW 49

Preference Share In general there are two types of shares: 1. the preference share and 2. the ordinary share.   Preference or preferred shares grant the shareholder certain extra rights which shareholders owning ordinary stock do not have. Holders of preference shares are paid first when the company pays dividends. Moreover the preferred shares, in most cases, come at … Continued

Weekly Finance Term – CW48

Explaining Buy Limit Order A buy limit order is an order to buy a security (such as stock) at a specific price, the so called limit price. Meaning if in the future, the market price drops at or below the chosen price, the order is executed and the stock is yours. If the price does … Continued

Frankfurt Tour III – LAZARD, S&P Global, Deutsche Bank

Visit the Frankfurt offices of Lazard, S&P Global and Deutsche Bank! WHU Finance Society is excited to announce the third Frankfurt Tour, taking place on Friday, September 22nd 2017. This year’s tour will be the most diverse yet and includes visits to Lazard’s corporate finance and asset management teams, S&P Global’s insurance ratings team as well as Deutsche … Continued

WHU Finance Society Announces Management Changes

Following the general meeting, WHU Finance Society is proud to announce the new management board. Chairman: Carl Witzel Vice Chairman: Benedict Teufert Events: Leonardo von Kietzell Student Capital Management: Dominik Wiesner Legal & Finance: Antonio Zill   All board members were unanimously elected and are subject to approval by the district court.   About WHU … Continued

WHU Financial: Japan And its Economy

Written by Marek Becker, BSc 2018   Measured by GDP, Japan is the world’s third biggest economy. Taking a look at the Nikkei 225, the major stock index of Japan, one can see something odd: the all-time high didn’t occur within the last few years, but in December 1989. The following article will at first … Continued

WHU Financial: Root Causes of Oil Price Formation

Written by Jan Spoerer, BSc 2017  1 Overview News reports about oil prices usually only cover one-time events that can help in understanding current price movements, but they fail to provide a deeper and more fundamental understanding of what constitutes oil prices. Therefore, we take a step back and discuss the most important and the … Continued