A

INSURANCE DEPOSIT AGENCY

State corporation created for the functioning of the deposit insurance system and carrying out payments of compensations to individuals - customers of the bank in the event of revocation of its license.
The creation of a system of insurance of bank deposits of the population is a special state program aimed at protecting the savings of the population in deposits and in bank accounts. If the bank's license is revoked, the depositor - an individual in a short time is paid monetary compensation up to 100% of the deposit (but not more than the maximum amount of insurance compensation established by law). Thus, the state guarantees the return of the deposit, even if the bank ceases to exist. If a depositor has several deposits in one bank, compensation is paid proportionally for each of the deposits, but not more than the maximum amount of insurance compensation in total. And if deposits are opened in several banks, then the amount of insurance compensation is calculated in relation to each bank separately. In this way, from the point of view of protecting savings, it is better for a depositor to open several deposits in different banks than in one. The second most important function of the DIA is to guarantee the pension savings of individuals who form a funded pension in the Pension Fund of Russia or in one of the non-state pension funds operating in compulsory pension insurance. DIA pays a guarantee indemnity in case of revocation of the NPF license, declaring it bankrupt or other cases stipulated by law.

ASSETS

Resources owned or controlled by someone that bring or may bring economic benefits in the future.

ACCEPTANCE

The answer of the person to whom the offer is addressed about its acceptance. 

STOCK

Equity security, securing the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to a part of the property remaining after its liquidation.

There are two types of promotions:

Ordinary share is an equity security that is subordinated to all other types of equity instruments.

Preferred share is an equity security that restricts the owner's rights to participate in the management of a joint-stock company and in return provides a number of benefits compared to ordinary shares, for example, the right to receive a fixed dividend, regardless of the profit of the joint-stock company.

UNDERWRITING

One of the methods of placing investment securities, during which the investment company buys out the entire issue of securities from the issuer and resells them to other investors.

B

BANK

Financial institution, the main activity of which is the attraction and placement of funds, as well as settlements.

BANK CARD

A plastic card that gives its owner access to his bank account and allows him to carry out various operations, including paying for purchases and receiving cash. The card is the property of the bank that issued it (the issuing bank). In this case, the card is issued in the name of the holder - the person who opened the account and ordered the card at the bank. There are debit and credit cards. Debit cards make it possible to use only the cardholder's own money, which is in his bank account. Credit cards allow you to use the bank's money borrowed on terms of payment and repayment. Often in everyday life "credit cards" are called debit cards with overdraft, that is, the ability at the time of payment to spend more than there is own money in the account, within the limit previously approved by the bank. In Russia, the most common cards of the international payment systems Visa and MasterCard. Since 2015, the Russian national payment system "Mir" has been introduced in Russia. The information carrier of the card is a magnetic stripe and / or a microprocessor (such cards are called chip cards). A special type of bank cards is a virtual card issued in electronic form and intended only for paying for purchases and making payments on the Internet.

BANK ACCOUNT

An account with a number created by the bank for the client so that he can participate in non-cash money circulation or accumulate funds.
Depending on the purpose, there are several types of bank accounts: current, settlement, budget, correspondent accounts, etc. For legal entities, as well as individual entrepreneurs, current accounts are opened to store funds and make settlements with other legal entities and individuals. An account opened for the same purpose by an individual is usually called a checking account. The settlement (current) account gives the bank's client quick and reliable access to funds, without restrictions and at any time. Both individuals and legal entities can open accounts for deposits (deposits) - they account for funds placed in banks in order to generate income in the form of interest. One bank can open several accounts of different types for one client. And physical, and a legal entity can open different accounts with different banks without restrictions. Banks charge a fee for carrying out transactions on customer accounts in accordance with established tariffs

BANKOLMAT

A device for issuing and receiving money, as well as paying for services and repaying loans without the participation of a bank employee, using bank cards. ATMs differ in their functionality, the range of services depends only on the model and manufacturer, as well as on the bank's business processes. If withdrawing money is a mandatory option, then the cash-in service is not available at all ATMs. Some ATMs provide the possibility of currency exchange, etc. If, as a result of a technical malfunction, the ATM did not credit the deposited money to the account or did not return the card, you should immediately contact the bank. The telephone number of the bank division responsible for the operation of the ATM network must be indicated on each such machine.

BANKRUPTCY

The inability of the debtor (citizen, individual entrepreneur or legal entity) to meet the claims of creditors for monetary obligations recognized by the arbitration court. Such obligations include not only debts on transactions with counterparties, but also obligatory payments to the budget, fines, penalties, as well as wages and severance payments to company employees. The inability to fulfill obligations within three months is considered a sign of bankruptcy of a legal entity, and the claims themselves in aggregate must be at least 300 thousand rubles. Bankruptcy cases are considered by the arbitration court, where the debtor himself, the creditor, the authorized bodies, as well as the debtor's employee who has wage claims can apply for bankruptcy. The result of complex bankruptcy procedures should be the satisfaction of creditors' claims in full or in part in accordance with a certain priority. At any stage of the bankruptcy case, the debtor can conclude an amicable agreement with the creditors that satisfies both parties. An individual can also be declared bankrupt at the request of the citizen himself or his

EXCHANGE

A professional participant in the securities market, providing services for conducting organized trading in the commodity and financial markets.
According to the instruments traded, the exchanges are divided into currency, commodity, stock:

• Currency exchange is an organized market in which the free purchase and sale of national currencies is carried out, based on the exchange rate ratio between them (quotes)

• Commodity exchange - an organized wholesale market in which transactions of sale and purchase are concluded for certain groups of goods, called exchange

• Stock exchange - organized securities market

BROKER

A professional participant in the securities market that provides services for the execution of the client's order (including the issuer of equity securities during their placement) for the execution of civil transactions with securities and (or) for the conclusion of contracts that are derivative financial instruments.

C

CURRENCY

The general name of the monetary units of different countries. Currency can be national, that is, accepted within a particular state, foreign (if issued by the government of another country) and collective (for example, the euro). The national currency is a legal tender in the territory of the country, the state protects its authenticity. At the same time, foreign currencies may be allowed for settlements and savings, albeit with restrictions. The national currency of the Russian Federation is the Russian ruble. 1 ruble is sibdivided into 100 kopecks. Depending on the possibility of free exchange for another currency, currencies are divided into freely convertible, partially convertible (if currency restrictions are applied for certain types of exchange operations) and non-convertible.

EXCHANGE RATE

The price of a monetary unit of one country, expressed in the monetary units of another country. The ruble's exchange rate against a foreign currency is the value of one ruble, expressed in units of this currency. In practice, the indicator of foreign exchange rates against the ruble is more often used, which shows how much rubles are worth, for example, 1 dollar or 1 euro. The Central Bank of the Russian Federation (Bank of Russia) decides in Russia how to influence the exchange rate and whether to influence it at all. Currently, Russia has a floating exchange rate regime, in which it is influenced only by the ratio of supply and demand for foreign currency. The dynamics of the exchange rate can be influenced by changes in oil prices, inflation, economic growth, investor sentiment and expectations, etc. The Bank of Russia does not fix the exchange rate and does not try to control it. The official exchange rates of foreign currencies against the ruble are established by the Bank of Russia based on quotations on the foreign exchange market. They are set daily on business days and come into effect on the next calendar day. These indicators can be used by various organizations, for example, for calculations when the cost of a product or service is prescribed in the contract as the ruble equivalent of a particular amount in currency calculated at the official rate of the Bank of Russia.

WARRANT

A security that gives the holder the right to buy a proportional number of shares at a specified price for a specified period of time, usually at a lower price than the current market price.

VEXEL

A security that certifies the unconditional obligation of the drawer (promissory note) or another payer (bill of exchange) specified in the bill of exchange to pay the borrowed sums of money upon the due date of the bill. 

Volatility

An indicator of the securities or currency market, showing the level of its volatility in a certain period.

D

GUARANTEE

Guarantor; institution or person giving the guarantee.

STATE TREASURE

According to the legislation of the Russian Federation, funds from the state budget and other state property not assigned to state enterprises and institutions are actually: STATE KAZNA of the Russian Federation; STATE TREASURY of the republic within the Russian Federation; the treasury of an autonomous region, autonomous region, territory, region. The treasury receives taxes, duties and other state revenues, as well as other property acquired by the Russian Federation, a republic within the Russian Federation, an autonomous region, an autonomous region, a territory, a region in accordance with the law.

D

DEVOLVATION

This is a depreciation of the national currency in relation to other currencies or to gold. In Russia, the traditional measure of devaluation is the exchange rate of the ruble against the dollar: the ruble is getting cheaper, the dollar is getting more expensive. Devaluation negatively affects public confidence in the national currency, leads to an outflow of funds from the banking system, and agiotage in the consumer market. Citizens with loans in foreign currency need to be especially careful. With a devaluation, the debt burden can become too heavy for their family budget. In this case, it is worthwhile in advance, at the first signs of a change in the exchange rate, to study the possibilities of refinancing a foreign currency loan. At the same time, devaluation is quite beneficial to many industries, if they have a small share of expenses in foreign currency, but a significant share of exports.

DENOMINATION

This is a change in the face value of money in a certain ratio, usually a multiple of 10, with a corresponding change in all prices in the national currency.
Denomination makes cash settlements more convenient, eliminating the amount of "extra" zeros. So, during the denomination in Russia in 1998, the exchange of money was carried out in a ratio of 1000 to 1: 1000 rubles was replaced by 1 ruble. The Central Bank of the Russian Federation (Bank of Russia) makes the decision to issue new banknotes and coins and to withdraw old ones. The law prohibits any restrictions on the amounts or subjects of exchange when replacing old banknotes with new ones. And the period for withdrawing banknotes and coins from circulation cannot be less than one year, but must not exceed five years.

DEPOSIT

Funds deposited with a specialized organization for the purpose of earning interest income.

DEPOSITARY

A professional participant in the securities market that provides services for the storage of securities certificates and (or) accounting and transfer of rights to securities.

DIVIDENDS

Part of the profit of a joint-stock company, distributed among its participants in accordance with the number and type of ordinary and preferred shares belonging to them.

DEALER

A professional participant in the securities market, carrying out transactions for the purchase and sale of securities on his own behalf and at his own expense by publicly announcing the purchase and / or sale prices of certain securities with the obligation to purchase and / or sell these securities at the announced prices.

DISCOUNTED CASH FLOW

The present (present) value of cash flows expected to be received in the future. 

E

EUROBONDS

Debt securities, coupon bonds placed on the international financial market. 

WITH

LOAN DEBT

The aggregate of the principal amount of the loan subject to repayment, accrued interest and commissions, as well as fines and penalties, if provided by the loan agreement. A distinction should be made between debt and overdue debt, which occurs when the borrower violates the payment schedule. For example, in order to repay a credit card loan, a bank customer must regularly make a minimum payment, which is set by the bank. If this payment has not been made in full and on time, an overdue debt will be formed on the card. From this moment, the credit institution can charge fines and late fees.

LOAN

An agreement according to which one party (the lender) transfers property or management to the other party (the borrower) money or goods, and the borrower undertakes to return an equal amount of money or an equal amount of things of the same kind and quality.

PLEDGE

Property, which acts as security under the loan agreement and guarantees the performance by the borrower of its obligations to the lender. 

AND

INVESTMENTS

Cash and other valuable property invested in commercial objects, financial instruments, real estate and other investment instruments for the purpose of making a profit.
The process of making (placing) investments is called investment activity, and the investor is called an investor. The difference between investments and simple savings lies in the fact that money does not "lie under the mattress", but is in economic circulation, that is, it works. Even placing free money on a bank deposit is an investment, since the bank itself invests these funds in the real sector or financial instruments. Financial investments involve the placement of assets in financial instruments - securities, including units of mutual funds. Each investor should choose an investment object for himself, based on the goals set for profit and risks that he considers acceptable. Most often, investments involve more or less long-term investments. Although there is a special type of investment - speculation,

INVESTORS

Individuals, organizations, funds that place capital for the purpose of subsequent profit.

From an economic point of view, investors are classified into two types:

Strategic investors acquire assets for a long time and, if they have control, can participate in the management of the enterprise

Portfolio investors carry out speculative transactions in the stock market with the aim of making a profit from the difference between the purchase and sale prices of securities

RTS INDEX

The index of the Russian trading system, calculated on the basis of prices and other additional criteria of 50 shares of Russian issuers with the maximum capitalization. The list of issuers and their weight in the index is revised once a quarter.

INDIVIDUAL INVESTMENT ACCOUNT

An internal accounting account intended for separate accounting of funds, securities of a client - an individual, obligations under agreements concluded at the expense of the specified client, which is opened and maintained by a broker or manager on the basis of a relevant agreement.

INFLATION

An increase in the general level of prices for goods and services.

With inflation, money depreciates, the purchasing power of the population decreases. The reverse process of inflation, that is, a decline in prices, is called deflation.

Distinguish between creeping (about 3% -5% per year), galloping (about 10-50% per year) and hyperinflation (over 50% per year). 

TO

CASCO

Voluntary type of insurance, according to which the insurer pays compensation to the owner of the vehicle if the car is damaged or lost.
Casco does not include driver liability insurance. The main risks that are covered by the comprehensive insurance policy are theft and damage. In this case, the insurance contract may include protection against one of these risks or from both at once. In terms of the risk of "damage", an insured event, as a rule, is damage (up to complete destruction) of a car as a result of an accident, fire, natural disaster, theft of a part, glass breakage, falling objects, etc. the case of a car theft by intruders. The sum insured under a comprehensive insurance contract is determined depending on the value of the car. The size of the insurance premium is influenced by many factors, including the driver's experience, the conditions for using the car, as well as such an indicator as "theft" - that is, the statistics of thefts of a given brand and model in a particular region. The more popular a car is with criminals, the higher the cost of hull insurance for the risk of theft. Specific conditions are prescribed in the insurance contract and the insurance rules of each insurer.

CYBER FRAUD

Theft or acquisition of the right to another's property by deception or abuse of trust of users of information and telecommunication networks.
Cyber ​​fraud includes any manipulation of entering, deleting, blocking, modifying computer information, as well as any interference with the operation of storage, processing or transmission of data aimed at obtaining illegal profit. It is especially necessary to highlight the use of technical devices and computer programs to steal money from bank cards. Experts identify several of the most common types of cyber fraud. "Skimming" is a scheme in which criminals copy the magnetic stripe of the card and read its pin code, then make a fake plastic card and use it to write off the money. "Phishing" is a fraud based on obtaining information about a card remotely, for example, by sending emails with links leading to a fly-by-night site, where the user, under one pretext or another, will be asked to provide the pin-code and cvv-code of his card. A type of phishing using a telephone is called vishing. Having data on users' cards, fraudsters gain access to their bank accounts. The same purpose is served by "pharming" - hidden redirection of users to phishing sites using special virus programs. In order not to become a victim of fraudsters, an Internet user needs to be more careful when making online purchases and only use sites that ensure the security of transactions. It is also important to remember that employees of financial institutions never require you to provide them by phone or mail with confidential information about a bank card and account. A type of phishing using a telephone is called vishing. Having data on users' cards, fraudsters gain access to their bank accounts. The same purpose is served by "pharming" - hidden redirection of users to phishing sites using special virus programs. In order not to become a victim of fraudsters, an Internet user needs to be more careful when making online purchases and only use sites that ensure the security of transactions. It is also important to remember that employees of financial institutions never require you to provide them by phone or mail with confidential information about a bank card and account. A type of phishing using a telephone is called vishing. Having data on users' cards, fraudsters gain access to their bank accounts. The same purpose is served by "pharming" - hidden redirection of users to phishing sites using special virus programs. In order not to become a victim of fraudsters, an Internet user needs to be more careful when making online purchases and only use sites that ensure the security of transactions. It is also important to remember that employees of financial institutions never require you to provide them by phone or mail with confidential information about a bank card and account. The same purpose is served by "pharming" - hidden redirection of users to phishing sites using special virus programs. In order not to become a victim of fraudsters, an Internet user needs to be more careful when making online purchases and only use sites that ensure the security of transactions. It is also important to remember that employees of financial institutions never require you to provide them by phone or mail with confidential information about a bank card and account. The same purpose is served by "pharming" - hidden redirection of users to phishing sites using special virus programs. In order not to become a victim of fraudsters, an Internet user needs to be more careful when making online purchases and only use sites that ensure the security of transactions. It is also important to remember that employees of financial institutions never require you to provide them by phone or mail with confidential information about a bank card and account.

CLEARING

A system of mutual settlements in the securities and derivatives markets.

As a rule, it is carried out by the clearing house of the exchange or a specialized clearing organization established at the trading floor.

KEY BET

One of the instruments of the state's monetary policy, the percentage at which the Central Bank of the Russian Federation provides loans to commercial banks, and at the same time the rate at which the Central Bank of the Russian Federation is ready to accept funds from banks for deposits.

CONVERSION

The procedure for replacing some securities with other securities. Depending on the form of conversion, there may be a change in the type of securities (conversion of bonds into shares), category (preferred shares are converted into ordinary ones), type (preferred shares of one type into preferred shares of another type), par value of securities, as well as the scope of rights, provided by already existing securities.

QUOTATION

The price (rate, interest rate) of the goods, which is announced by the seller or the buyer and at which they are ready to make a purchase or sale (an offer is offered).

CREDIT

A cash loan provided by a bank to a borrower at a certain interest rate for the use of money. Loan agreement is an agreement according to which a bank or other credit organization undertakes to provide funds to the borrower, and the borrower undertakes to return them and pay interest in the amount and on the terms stipulated by the agreement. The amount of money transferred under a loan agreement is called a loan. The loan agreement must be concluded in writing, otherwise its terms are invalid. The loan agreement must necessarily contain its essential conditions: the amount, terms of issuance and repayment of the loan, the procedure for its provision, accrual and payment of interest, early repayment of the loan. One of the most important points is the indication of the size of the interest rate for using the loan. The law obliges credit institutions to inform a client - an individual person - the full cost of a loan. Also, the agreement may contain methods of ensuring the repayment of the loan, for example, a pledge.

CREDIT LINE

A legally formalized obligation of the bank to issue a loan to the client in a certain amount within a specified time. 

CREDIT RISK

The risk that one party to a financial instrument will incur a financial loss as a result of a default on the other party.

L

LICENSE

a special permit for a legal entity or individual entrepreneur to carry out a specific type of activity, confirmed by a document of a specially authorized state body.
Licensed types of activity include such activities that may cause damage to the rights, life, health of citizens, etc. Licenses are issued by licensing authorities - authorized executive authorities - on paper or in the form of an electronic document. Licenses to operate in financial markets are issued by the Central Bank of the Russian Federation (Bank of Russia). To obtain a license, an organization must meet strict licensing requirements. If they are violated, the license can be revoked - then the organization is obliged to stop engaging in the activities provided for by the license.

PAWNSHOP

A specialized commercial organization that provides loans to citizens on the security of their belongings, as well as storage of things on a reimbursable basis The activities of pawnshops are regulated by consumer lending legislation and are accountable to the Central Bank of the Russian Federation (Bank of Russia). A pawnshop cannot do anything other than providing loans to citizens, storing their belongings and providing information and consulting services. The pawnshop has no right to use and dispose of the pledged and deposited things. He is responsible for their safety and protects from harmful influences and unauthorized persons. The pawnshop is obliged to insure the risk of loss and damage to the thing accepted as a pledge or for storage in favor of the borrower or depositor at its own expense. And to force the client to insure things at his expense is prohibited. Appraising a thing pledged or deposited, is made by agreement of the parties. The term of a loan to an individual in a pawnshop is limited to one year. If, after the expiration of the term, the borrower has not paid the pawnshop the amount of the loan with interest for use, the thing pledged by him is considered unclaimed and goes on sale, including from public auctions in the form of an open auction. Even if the amount received from the sale of an unclaimed thing is less than the amount of the debt, the pawnshop's claims against the borrower after the sale are considered extinguished. But if the thing is sold at a cost that exceeds the borrower's obligations, the pawnshop is obliged to return the difference to him. Items that have been deposited are generally subject to the same rules. If, after the expiration of the term, the borrower has not paid the pawnshop the amount of the loan with interest for use, the thing pledged by him is considered unclaimed and goes on sale, including from public auctions in the form of an open auction. Even if the amount received from the sale of an unclaimed thing is less than the amount of the debt, the pawnshop's claims against the borrower after the sale are considered extinguished. But if the thing is sold at a cost exceeding the obligations of the borrower, the pawnshop is obliged to return the difference to him. Items that have been deposited are generally subject to the same rules. If, after the expiration of the term, the borrower has not paid the pawnshop the amount of the loan with interest for use, the thing pledged by him is considered unclaimed and goes on sale, including from public auctions in the form of an open auction. Even if the amount received from the sale of an unclaimed thing is less than the amount of the debt, the pawnshop's claims against the borrower after the sale are considered extinguished. But if the thing is sold at a cost exceeding the obligations of the borrower, the pawnshop is obliged to return the difference to him. Items that have been deposited are generally subject to the same rules. the pawnshop's claims against the borrower are deemed to have been extinguished after the sale. But if the thing is sold at a cost exceeding the obligations of the borrower, the pawnshop is obliged to return the difference to him. Items that have been deposited are generally subject to the same rules. the pawnshop's claims against the borrower are deemed to have been extinguished after the sale. But if the thing is sold at a cost exceeding the obligations of the borrower, the pawnshop is obliged to return the difference to him. Items that have been deposited are generally subject to the same rules.

PREFERRED LENDING PERIOD

The period of time during which the borrower can not pay interest on the loan, or pay at a reduced rate. Most often, the grace period is applied to holders of credit cards or cards with an overdraft and may be limited to non-cash transactions (payment for goods and services). At the same time, the obligation to make the minimum loan payments is not canceled. The bank itself sets the duration of the grace period in days from the date of debiting credit funds on the card or on another date. Information about the rules of the grace period is contained in the bank card issuance agreement or loan agreement. In order to use credit funds without overpayment, you should study and understand the agreement well.

LEASING

Type of investment activity for the acquisition of property and its transfer on the basis of a lease agreement to individuals or legal entities for a specified fee for a specified period on certain conditions stipulated by the agreement, with the right to purchase the property by the lessee. 

LIQUIDITY

The ability of assets to be quickly sold with minimal cash losses associated with the speed of sale.

The assets of the company in decreasing order of liquidity:

• cash

• short-term financial investments

• current receivables

• stocks

• fixed assets

LISTING OF SECURITIES

Inclusion of securities by the trade organizer in the list of securities admitted to organized trading for the conclusion of purchase and sale agreements, including the inclusion of securities by the exchange in the quotation list.

M

MARGIN

The difference between price and cost (analogous to the concept of profit).

It can be expressed both in monetary units and as a percentage, as the ratio of the difference between price and cost to the price (as opposed to the trade margin, which is calculated as the same difference in relation to the cost).

MATERNAL CAPITAL

federal budget funds transferred to the budget of the Pension Fund of the Russian Federation for the implementation of measures of state support for families at the birth (adoption) of a second and subsequent children. The size of the maternity capital was planned to be revised annually taking into account the growth rate of inflation, however, until January 1, 2017, this norm was suspended, and in 2016 the amount of maternity capital is not indexed. Persons who have received a certificate for maternity capital can spend these funds in whole or in part on improving housing conditions, educating a child, forming a funded pension for women mothers, purchasing goods and services for the social adaptation of disabled children. This money can also be used to pay the down payment or pay off mortgage loans.

MICROFINANCE ORGANIZATION (MFO)

A legal entity that is not a bank and makes small loans on simpler and usually more expensive terms. Loans in MFOs are issued quickly and even in situations where the bank may refuse. However, the cost of such financing can be many times higher than in a bank. An MFO has no right to issue loans in foreign currency, as well as provide a legal entity or individual entrepreneur with a microloan if the amount of its principal debt to this microfinance organization exceeds 3 million rubles. For an individual, this limit is 1 million rubles. An important economic role for microfinance is to provide affordable financial support to small businesses or people in dire need of a small amount. However, borrowers should carefully study the information on the terms of the agreement and soberly assess the possibility of paying off the loan in full and on time. It is recommended to compare the full cost of the loan, that is, the percentage of overpayment for the use of money, in different MFOs and with the average market value, which is calculated and published on its website by the Central Bank of the Russian Federation (Bank of Russia). It is not allowed to exceed the value calculated by the Bank of Russia by more than one third. Microfinance organizations are obliged to comply with the uniform, established by law, rules for lending to citizens, which ensures the protection of the rights of consumers of their services. which is calculated and published on its website by the Central Bank of the Russian Federation (Bank of Russia). It is not allowed to exceed the value calculated by the Bank of Russia by more than one third. Microfinance organizations are obliged to comply with the uniform, established by law, rules for lending to citizens, which ensures the protection of the rights of consumers of their services. which is calculated and published on its website by the Central Bank of the Russian Federation (Bank of Russia). It is not allowed to exceed the value calculated by the Bank of Russia by more than one third. Microfinance organizations are obliged to comply with the uniform, established by law, rules for lending to citizens, which ensures the protection of the rights of consumers of their services.

H

ACCUMULATION

The part of money income that a person sets aside to meet his needs in the future. Savings represent the difference between a citizen's or family's income and consumer spending. These funds can be kept at home, but in this case they will not bring additional income - they will not "work". By opening a deposit in the bank, the depositor will receive a guaranteed income, and by investing in other financial instruments - not a guaranteed, but probable income. Also, one of the options for financially competent disposal of savings can be a life insurance contract.

TAX

Mandatory payment of legal entities and individuals established by law in favor of the state for the financial support of its activities.
The collection of taxes and fees imposed by the state is called the tax system. In the Russian Federation, the tax system includes federal, regional and local taxes, depending on the budget to which they are sent. In addition, special tax regimes are possible, for example, a simplified taxation system for some companies. Control and supervision over the correctness of the calculation and payment of taxes is carried out by the Federal Tax Service. For violation of tax legislation, citizens and organizations are liable in the form of fines, and in some cases - and criminal liability.

TAX INCENTIVES

The taxpayer's right to partial or full exemption from the payment of tax provided for by tax legislation. Benefits are provided to categories of individuals or organizations and cannot be individual in nature, that is, provided to someone personally. So, for example, the Tax Code establishes a list of categories of taxpayers who are entitled to benefits on property tax of individuals, including Heroes of the Soviet Union and the Russian Federation, invalids of I and II disability groups, disabled from childhood, participants in the Great Patriotic War, pensioners - total 15 categories. They are exempt from paying tax on their housing. Their lists of categories and grounds for granting benefits can be established for each type of tax. Benefits are established by the Tax Code or,

TAX DEDUCTION

The amount by which the taxable base is reduced (the income from which the tax is paid), or the refund of a part of the previously paid personal income tax in cases established by law.
A citizen of the Russian Federation can receive a tax deduction, whose income is taxed at a rate of 13%. In this case, not the entire amount of the claimed deduction is subject to refund, but the corresponding amount of previously paid tax, that is, 13% of the deduction. The law establishes 5 types of tax deductions, of which the most commonly applied are standard, social and property deductions. Standard deductions are received by taxpayers belonging to a certain category of citizens (disabled, combatant, etc.) or having dependent children. Social deductions include deductions for expenses on charity, education, treatment and purchase of medicines, non-state pension provision, voluntary pension insurance, voluntary life insurance and the funded part of the labor pension. The right to property tax deduction is given by certain transactions with property, for example, buying an apartment. Two more types of deductions (professional and carry-forward deductions from securities transactions) are relevant for some professions and individuals actively working in the stock market. To receive tax deductions, an individual must submit a tax return in the form of 3-NDFL, attaching documents confirming the right to deduction. However, some types of deductions (for example, child deduction) can be provided by the employer. To receive tax deductions, an individual must submit a tax return in the form of 3-NDFL, attaching documents confirming the right to deduction. However, some types of deductions (for example, child deduction) can be provided by the employer. To receive tax deductions, an individual must submit a tax return in the form of 3-NDFL, attaching documents confirming the right to deduction. However, some types of deductions (for example, child deduction) can be provided by the employer.

TAX RESIDENT

This is an individual who is on the territory of the country for a period determined by law and is fully subject to the tax legislation of this country.
A citizen of a country is not necessarily a tax resident and vice versa: a tax resident is not necessarily a citizen of a country. Tax residents of the Russian Federation are individuals who actually stay in Russia for at least 183 calendar days within 12 consecutive months. The period of stay of an individual in the Russian Federation is not interrupted for periods of his departure outside the territory of the Russian Federation for short-term (less than 6 months) treatment or training, as well as for work at offshore hydrocarbon deposits. Regardless of the actual time spent in the Russian Federation, Russian servicemen serving abroad, as well as employees of state authorities and local self-government bodies, are recognized as tax residents of the Russian Federation,

INNOVATION

Replacement of some obligations between two parties under the agreement for other obligations between them. 

NOMINAL VALUE

The value set by the issuer and usually indicated directly on the security or banknote. 

ABOUT

CREDIT COVERAGE

A loan repayment guarantee mechanism that protects the rights of the lender.
The meaning of collateral is that the lender, under any circumstances, gets back the amount of his loan with interest. For this, a pledge is often used, that is, the transfer of rights to property to the bank, which can be subsequently sold to pay off the debt. Loans provided by the bank can be secured by a pledge of immovable and movable property, securities, bank guarantees, etc. If the borrower violates obligations under the loan agreement, the bank has the right to foreclose on the pledged property and sell it in its favor. 

BONDS

An issue-grade security securing the right of its owner to receive a bond from the issuer within the term stipulated in it of its par value or other property equivalent.

A bond may also provide for the right of its owner to receive a fixed percentage of the par value of the bond or other property rights.

Bond yield is interest and / or discount.
Overdraft is a form of lending by the bank to a client with a shortage of funds on his account at the time of the operation. To complete the operation planned by the client, the bank debits funds from his account, automatically providing him with a loan for the missing amount, but within a predetermined limit. When spending credit money, the free overdraft limit is reduced. When money is credited to the account, the limit is restored and can be used again. Interest is charged for using the loan. The bank can provide a grace period during which it does not charge interest on the use of the loan. Often, overdraft is an additional option to debit cards, for example, in the case of transferring the salary of a company employee to the card (the so-called salary cards). The credit limit in this case, as a rule,

OPTION

A contract in which one party grants the other the right to buy or sell a specific asset at a specific point in time at a specific price (strike price).

There are two main types of options:

A call option gives its holder the right to buy a certain amount of some assets at a predetermined strike price at any time before the expiration of the contract (American call option) or at the time of the expiration of the contract (European call option)

A put option gives its holder the right to sell a certain amount of certain assets at a predetermined strike price at any time before the expiration of the contract (American put option) or at the time of the expiration of the contract (European put option)

ORGANIZED TRADING

Trades held by exchanges and other trade organizers on a regular basis in accordance with the established rules stipulating the procedure for admitting persons to participate in trades to conclude contracts for the sale of goods, securities, foreign currency, etc.

OFFER

An offer to conclude a transaction, which sets out the essential terms of the contract, addressed to a specific person, a limited or an unlimited number of persons. 

P

UNIT INVESTMENT FUND (PIF)

A form of collective investment in which investors own shares in the property of the fund. Penalty is a type of financial punishment for failure to meet certain obligations on time, calculated as a percentage of the amount specified in the agreement or required by law.
Penalty, like a fine, is a type of forfeit. But if the fine is levied once upon the fact of violation, then the penalty is charged for each day of delay. Thus, each day of default increases the amount of the penalty. This mechanism stimulates the debtor to pay off his debt faster. At the same time, the law protects the debtor from excessive sanctions. If the penalty is clearly disproportionate to the consequences of the violation of the obligation, the debtor may apply to the court with an application for its reduction.

MONEY TRANSFER

The movement of money from one person to another through the payment system without the direct transfer of cash from hand to hand.
Transfer of funds can be carried out through bank accounts and without opening bank accounts. Actually "money transfer" is most often called a transfer without opening a current account, with the receipt of cash from the sender and the payment of cash to the recipient. Electronic money can also be transferred, that is, the electronic equivalent of the funds previously secured by the client. The sender and recipient of a money transfer can be any natural or legal person. If they are located in different countries, such a transfer becomes cross-border. An organization that, in accordance with the law, is entitled to transfer funds is called a money transfer operator. She acts as an intermediary between the recipient and the sender, charging a commission for this.

DERIVATIVE FINANCIAL INSTRUMENT

A financial instrument that has all three of the following characteristics:

• its value changes in response to changes in a particular interest rate, security rate, commodity price, foreign exchange rate, price or interest rate index, credit rating or credit index, or other variables (sometimes called “reference”)

• its acquisition does not require investment or requires an initial net investment that is less than for other instruments, the price of which has a similar response to changes in market factors

• settlements on it are carried out in the future

INTEREST RATE

The amount as a percentage of the loan amount that the borrower pays for using it, calculated for a certain period.

There are fixed, floating and real rates:

The fixed interest rate is fixed at a fixed rate for a certain period and does not depend on any circumstances

The floating interest rate depends on fluctuations in certain indicators. A classic example of such indicators is the LIBOR rate

The real interest rate is the inflation-adjusted interest rate.

PROFESSIONAL MEMBER OF THE SECURITIES MARKET

Participants in the organized securities market - brokers, dealers, managers, depositories, registries, organizers of trading in the securities market, etc. 

PUBLIC SECURITIES

Placement of securities by open subscription, including placement of securities at organized trading. 

R

DILUTION

Decrease in earnings per share or increase in loss per share as a result of the assumption that convertible instruments have been converted, options or warrants have been exercised, or that ordinary shares have been issued after meeting specified conditions. 

REPO

Sale and purchase agreement for securities with an obligation to repurchase. An agreement under which one party (the seller under the repo agreement) undertakes, within the time period established by this agreement, to transfer the securities to the other party (the buyer under the repo agreement), and the buyer under the repo agreement undertakes to accept the securities and pay a certain amount of money for them (the first part of the repo agreement) and under which the buyer under the repo agreement undertakes to transfer the securities into the ownership of the seller under the repo agreement within the time period established by this agreement, and the seller under the repo agreement undertakes to accept the securities and pay a certain amount of money for them. 

REPOSITARY

An organization that provides services for the collection, fixation, processing and storage of information about repo agreements, agreements that are non-organized trading, agreements that are derivative financial instruments, agreements of a different type provided for by regulatory enactments, as well as maintaining a register of these agreements.

CREDIT RESTRUCTURING

Changes in the terms of repayment of the loan by the lender, as a rule, in order to prevent the complete cessation of payments. When a loan is restructured, its conditions are made easier for the borrower, for example, payments are temporarily canceled (loan holidays), the interest rate is reduced or the term for using the loan is extended. At the same time, the lender does not always act at a loss, since the prolongation of the loan often leads to a decrease in the size of the monthly payment, but to an increase in the total amount of payments by the borrower based on the results of the loan term. Loan restructuring can take place as part of a plan for restructuring a citizen's debts in case of bankruptcy.

LOAN REFINANCING

Obtaining a new loan on more favorable terms for full or partial repayment of the previous one. To refinance, the borrower needs to get a loan from a new bank, and that bank pays off his debt by transferring money to the bank where the first loan was issued. In this case, the pledge is also re-registered to the new creditor. The reason for refinancing may be the borrower's desire to change the loan currency. So, when the Bank of Russia announced the transition to a floating exchange rate, such refinancing operations were very popular, in which a foreign currency loan was replaced by a loan in rubles. Refinancing does not necessarily mean moving to another credit institution. Sometimes banks refinance their own loans. Refinancing also allows you to combine several loans in different banks into one, which may be more convenient and profitable.

LIQUIDITY RISK

The risk that the entity will encounter difficulty in fulfilling obligations associated with financial liabilities that involve settlements in cash or another financial asset. 

MARKET RISK

The risk that the fair value of a  financial instrument  or its future cash flows will fluctuate due to changes in market prices.

Includes:

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices (excluding those related to interest rate risk or foreign exchange risk), regardless of whether these changes are caused factors that are specific only to a particular financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market

FROM

SWAP

A financial contract in which the parties agree to exchange net payments over a specified period.

The most common swaps are:

Currency swap is the exchange of interest payments denominated in different currencies for a specified amount and based on specific interest rate indices, where the notional amounts are exchanged at the beginning of the contract term and then re-exchanged at the termination of the contract at specified exchange rates.

Interest rate swap - exchange of payments at floating and fixed interest rates

REFINANCING RATE

Interest rate when the Central Bank of the Russian Federation provides loans to commercial banks. The refinancing rate was introduced on January 1, 1992 and was used, among other things, for tax purposes and the calculation of penalties and fines. After the introduction of the key rate in 2013, the refinancing rate ceased to be important as an indicator of monetary policy and was only for reference purposes. Since January 1, 2016, the Bank of Russia has not established an independent value for the refinancing rate.

INSURANCE

A special type of economic relations for the financial protection of life, health, property or liability to other citizens in the event of a negative event (insured event) provided for by an insurance contract (policy).
Compensation for damage in insurance occurs at the expense of funds, which are formed from the insurance premiums (insurance premiums) paid by the policyholders. Such reimbursement, as a rule, is much higher than the insurance premium - this is the meaning of insurance: in difficult life situations, the insurance company provides its client with financial assistance in a predetermined amount for each case. Insurance can be compulsory and voluntary. For example, it is mandatory for the owner of a car to purchase an MTPL policy. Citizens and organizations enter into a voluntary insurance contract at their choice in order to protect themselves from possible risks: illness, accident, loss of property, loss of a plastic card, etc. The activities of insurance companies are subject to compulsory licensing for each type of insurance.

SECURITIZATION

Financing certain assets by issuing securities.

SPOT

Settlement conditions under which payment for a transaction is made immediately (usually within two days). 

T 

RATE

The system of rates of fees for various services provided by companies and organizations, in particular, banks, insurance and financial companies.
Often, when concluding an agreement with a client, the cost of the company's or bank's services is not indicated, but a link is given to the collection of tariffs, which contains all prices for all services. Usually, the contract also stipulates the right of a financial organization to make changes to tariffs without agreeing, but only notifying the client about it, for example, by posting a new collection of tariffs on the official website. Tariffs can be divided by service category or by customer groups. Some tariffs are set by the state. For example, for compulsory motor third party liability insurance, tariffs are developed by the Bank of Russia in the form of a certain tariff corridor and coefficients that affect the final tariff.

Trader

A person who transacts, as a rule, in the stock, foreign exchange or commodity markets with the aim of making a profit. Trading can be carried out by both an individual in his own interests and an employee of a company (a bank, an insurance organization, a company that is a professional participant in the securities market) in the interests of his company or its clients. According to Russian law, such specialists are required to have qualification certificates of a financial market specialist issued by the Bank of Russia. Individuals who trade in their own interests are not required to have certificates for trading activities.

Have

MANAGER

A professional participant in the securities market that provides services for the trust management of securities, funds intended for the conclusion of transactions with securities and (or) the conclusion of contracts that are derivative financial instruments.

MANAGEMENT COMPANY

A legal entity licensed to carry out activities for the management of investment, unit investment and non-state pension funds. The task of the management company is to reasonably and conscientiously make transactions with various financial instruments in the interests of clients in order to generate income. The remuneration of the management company is usually calculated as a percentage of the value of the property under management.

F

FACTORING

Sale of receivables in exchange for cash.

FINANCIAL LITERACY

A combination of knowledge, knowledge, skills, attitudes and behavior related to finance and necessary for making sound financial decisions, as well as achieving personal financial well-being (Definition of the Organization for Economic Co-operation and Development)

FINANCIAL AIRBAG

Stock of cash and other valuables in case of loss of income due to unforeseen circumstances, such as job loss, illness, accident.
The purpose of the financial cushion is to help maintain an acceptable standard of living in all circumstances. Its size is determined by the capabilities of the family or citizen. As a rule, it is recommended to have for these purposes an amount not less than 3-6 times the monthly income. The airbag is formed by regularly saving money from income received in the form of salaries or other sources. To store such savings, it is best to use conservative investment instruments that guarantee a return on investment and interest payments, while bank deposits can be returned on demand. The purchase of insurance products that guarantee payments in case of negative events in life can also be considered as a safety cushion.

FINANCIAL FRAUD

Committing illegal actions in the financial market through deception, abuse of trust and other manipulations with the aim of illegal enrichment.
A typical example of financial fraud is a pyramid scheme - a scheme built to attract a large number of depositors, whose income is formed at the expense of the funds of subsequent participants in the pyramid. The organizers of the pyramids initially plan to steal depositors' funds. As a result, a large number of citizens remain deceived. Examples of such schemes in Russia are the Selenga Russian House (2.5 million deceived citizens), MMM JSC (up to 15 million people were affected), Vlastilina, etc. The financial pyramid can be distinguished from real business in several ways: the promise of very high interest rates; a small amount of the initial payment; aggressive advertising campaign; lack of licenses to attract funds from individuals.

FINANCIAL INSTITUTE

Organization-participant of the financial and credit system of the state, for example, a bank, an insurance company, an investment fund, a stock exchange, a non-state pension fund, etc. 

FINANCIAL INSTRUMENT

A contract that gives rise to a financial asset in one entity and a financial liability or equity instrument in another. Financial instruments are divided into primary (accounts receivable and payable, loans, bonds, promissory notes, shares, etc.) and derivatives (options, warrants, swaps, futures, forwards and all kinds of their combinations).

FINANCIAL RISK

The risk associated with the likelihood of loss of financial resources.

Combines market risk, credit risk and liquidity risk. 

FORWARD

A binding fixed-term contract whereby the buyer and seller agree to deliver goods of a specified quality and quantity or currency at a specified date in the future. The price of the goods, exchange rate and other conditions are fixed at the time of the transaction.

A forward contract is the OTC equivalent of a futures contract.

FUTURES

A standard exchange-traded contract (obligation) for the purchase or sale of an exchange-traded asset after a certain period in the future at a price predetermined at its conclusion. 

X

HEDGING

Opening trades in one market to offset the exposure to price risks of an equal but opposite position in another market. 

C

PERFORMANCE PRICE (STRIKE PRICE)

The price at which the buyer of a call (or put) option can buy (or sell) the underlying instrument.

SECURITIES PAPER

A financial document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation.

Securities are subdivided into equity securities (stocks), debt securities (government, corporate bonds, promissory notes) and derivatives (futures, options, etc.).

CESSION

Assignment of claims for loans, securities, etc.

H

RECEIPT

A security containing an unconditional order of the drawer to the bank to make a payment of the amount indicated in it to the check holder. 

Sh

FINE

Monetary penalty for violation of the law or contract, for example, in case of non-fulfillment or improper fulfillment of obligations under the contract, or financial liability of the manufacturer of goods or services for violation of consumer rights. If an individual has become the recipient of a forfeit, fine and other compensations imposed in connection with violation of consumer rights, such receipts are considered his income and are subject to personal income tax - personal income tax. The obligation to pay a fine may appear not only in commercial relationships, but also in terms of mandatory payments to the state. For example, a fine is levied if the taxpayer has not submitted a tax return on time.

E 

EQUIPMENT

Bank services for the organization of payment for goods and services at a point of sale by bank cards. The acquiring bank installs the necessary equipment for accepting cards for payment, makes all settlements for these operations, and trains personnel. For this, the bank receives a commission as a percentage of the purchase amount on a bank card. Taking into account the growing popularity of payments with plastic cards among the population, acquiring allows a trade organization to attract more customers and increase turnover. At the same time, the costs of guarded cash transportation (collection and associated risks are reduced.

EMISSION OF SECURITIES

Issue of securities into circulation. 

ISSUER

A legal entity, an executive body of state power or a local self-government body that, on its own behalf and within the framework of its activities, issues securities or other means of payment into circulation.

EFFECTIVE INTEREST RATE

The rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument or, where appropriate, a shorter period, exactly to the net carrying amount of the financial asset or financial liability.