| SWING INDEX ACCUMULATION |
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| Technical analysis indicator. |
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| PORTER ACTION |
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| The company does not know the name of the shareholder | |
| APPOMINATIVE ACTION |
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| The company knows the identity of the shareholder. In the case of a pure nominal action, the company takes over the service of the title. This system has the advantage of removing custody rights in these securities, and of providing for an increased dividend. In the case of an administered name it is a financial intermediary who deals with the security service ( most common case ) |
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| AF |
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| Fundamental analysis. Economic analysis of values only. |
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| AGE |
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| Extraordinary General Meeting: Meeting of shareholders to decide on an event not scheduled at the last AG but unable to wait for the next. For example split (division) of a security, a capital increase, an OPA, OPE... |
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| AGO |
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| Regular General Assembly It takes place once a year, within 6 months of the closing of the accounts and is intended to approve the accounts, discuss the day-to-day management of the company and elect the members of the board of directors |
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| APT |
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| Arbitrage Pricing Theory. This theory presented by S. ROSS in 1976 postulates that the price of a title depends on a number of factors common to all titles and a factor specific to each title. APT is a kind of generalization of MEDAF or CAPM, in the sense that it proposes a further decomposition of risk. If APT is reduced to a single common systemic risk factor, MEDAF is returned. |
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| ARBITRATION |
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| The transaction of taking advantage of a market anomaly consisting of buying and selling two similar instruments by taking advantage of the discount of one against the other (e.g. a common share and its ADP, a security and its convertible...). |
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| ASK |
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| Course offered | |
| AT |
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| Technical Analysis: Analysis of markets by prices and volumes. It can be turned down in chart analysis and statistical analysis. |
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| ATDMF |
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| Dynamic Technical Analysis of Financial Markets. Method invented and promoted by Philippe CAHEN, who devoted several books to this subject. In essence, this is a technical analysis carried out on different time scales so that the indications given by one scale can be confirmed or reversed using one or two other. |
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| OPINION ADOPTED |
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| At each transaction (purchase, sale) you make on securities, you receive a notice a few days later which summarizes all the characteristics of the order that has been executed. In case of a claim, you usually have 30 days to claim your rights. |
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| TAX |
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| This is generally 50% of the net dividend received. It was created to avoid double taxation of dividends distributed by a company to its shareholders. |
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| BALO |
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| »Legal and Mandatory Announcements Bulletin » It is a register in which listed companies publish various information such as shareholder summons, capital increase or accounts |
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| BEAR MARKET |
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| Lower market. To be « bearish » = anticipate a decline | |
| BENCHMARK |
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| Reference index to take into account the performance of a UCITS. For a fund invested in French equities, it is mainly the CAC40 which serves as a benchmark. US pension funds favour Euro Stock 50, which represents the 50 largest European capitalisations. | |
| IDB |
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| Course requested. | |
| BLUE CHIP |
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| These are the largest capitalisations of stock exchanges and are obviously part of the main indices. | |
| BNA |
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| Benefit per action: This is the net profit divided by the number of securities making up the capital. |
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| BNPA |
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| Retired benefit of society divided by the number of shares existing and to be created. Simply put, it is the net result divided by the number of shares. It is used in particular to calculate the RIP and to determine the share of profit allocated to each share. This makes it possible to compare several years while the number of shares has been changed. |
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| BOTTOM UP |
Added on 2001-09-14 21:58:07 |
| Investment strategy to focus on the intrinsic quality of a business without taking into account macroeconomic fundamentals. |
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| BRENT |
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| A term designating the price of a barrel of oil from the North Sea. |
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| BROKER |
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| It is the Anglo-Saxon equivalent of stock exchange companies. He's a financial intermediary, a broker. | |
| BS |
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| Subscription voucher: It gives the right to purchase a share at a price fixed up to a specified date. |
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| BULL MARKET |
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| Upmarket. To be «bullish » = anticipate an increase. |
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| CALL |
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| Option of purchase. Financial instrument to purchase an underlying asset at a specified price in advance at a specified maturity or during the option's lifetime. There are Call options related to Monep and Call warrants. |
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| CASH SETTLEMENT |
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| Settlement of a derivative instrument by cash payment. |
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| CHART |
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| Graph in English. |
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| WHITE CHECK |
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| A company that comes to the rescue of a company that is the subject of an attempt to purchase a hostile company. Example: Rallye was Casino's white knight when Promodès attempted to buy back. |
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| CLAW BACK |
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| The purpose of this clause is to provide for the possibility of reducing (limited proportion) the volume of securities to be opened to the public at the time of an introduction to the stock exchange. This clause is almost exclusively used in privatisation. |
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| CMF |
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| Financial Markets Council: Professional body which has replaced the CBV (Council for Securities Exchanges) and the CMT (Conseil du Marché à Terme). It lays down the general principles of market organization and the ethical rules to be followed by stakeholders. It is responsible for public offers (OPA, OPE, OPR) and comprises 16 members, including 3 shareholders' representatives and 3 investors. It should soon merge with the COB. |
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| COB |
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| Exchange Operations Commission: « Constable » Stock Exchange. The COB is responsible for the supervision of all markets and the approval of third party fund managers. |
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| COLLECTED |
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| To find themselves unable to debunk a position, buyer or seller, because of too little liquidity on a security. |
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| CONTRACT |
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| Contract entered into by a company with a stock exchange company or financial intermediary to ensure the liquidity of its securities. This contract allows investors to continuously purchase or sell shares. |
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| DILUTIVE |
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| A transaction is described as dilutive if it results in a decrease in profit per share. (e.g. an increase in capital or an acquisition resulting in a fall in profits) |
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| DIP |
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| Temporary reduction in the price of a share. Ideal time to position itself on it. |
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| DIVIDENDE |
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| This is the share of the profit distributed to shareholders | |
| DIVIDENDE BRUT |
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| It is equal to the net dividend plus tax assets. Gross dividend = 1.5 x net dividend. |
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| DIVIDENDIA IN ACTIONS |
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| The dividend is paid in the form of shares instead of cash. |
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| MAJOR DIVIDENDE |
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| If this is provided for in the articles of association and the general meeting has decided, the company may pay a dividend plus a maximum of 10% to all shareholders registered in the registered company for at least 2 years. |
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| DIVIDENDE NET |
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| This is the income actually paid by the enterprise. | |
| DOW JONES |
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| This is the NYSE benchmark at Wall Street. The best known is the »Dow Jones Industrial Average » (DJIA), composed of the top 30 industrial securities of the New York Stock Exchange |
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| RIGHT OF ATTRIBUTION |
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| In the case of a free allocation of securities, a right of allocation is detached from the old shares and a number of x rights allow for a free share. They are side by side until the award deadline. |
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| RIGHT OF GUARD |
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| Fees charged at the end of the year (theoretically) by financial intermediaries for the maintenance of securities accounts of their securities holders. |
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| RIGHT OF SUBCRIPTIONS |
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| In the event of an increase in capital, a subscription right is detached from the old shares and a number of rights allows a new share to be acquired at the price fixed in the terms of issue. They are side by side until the issue expires. |
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| EARN-OUT |
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| The Learn Out is a clause that allows to index part of the price of the transaction on the future results of the purchased company.
Two modalities are then possible: – either the buyer takes control of the entire capital of the target on the basis of a floor price, which can only be increased – either it buys only one share of the capital at a certain price and will buy the balance later on the basis of the company's future performance. The price indexation criteria may be as follows: multiple of the operating result, gross operating surplus, or even the current result. |
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| EBIT |
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| The operating income (or EBIT) is almost equivalent to the operating income in the French accounting system. This is the balance between revenues and expenses: sales costs, administrative and commercial costs. |
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| EBITDA |
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| EBITDA, Earnings Before Interest, Taxes, Depreciation and Amortization, is the US equivalent of EBE, Surplus Brut d'Exploitation. EBE is the difference between operating income and operating expenses consumed. Or by further detailing: Ebe = Value Added + operating subsidies – taxes, taxes and similar payments (excluding income tax) – staff and social charges – net allocation to provisions for depreciation of circulating assets and for operating risks and expenses + other operating income – other operating expenses The evolution of EBE can have an impact on the stock exchange price of a company. |
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| EURONEXT |
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| A company that manages a set of regulated markets in Paris, Amsterdam and Brussels. It ensures its functioning, security, and development. It decides on the admission and delisting of values, as well as membership of its members. |
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| FCIMT |
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| Common Fund for Intervention on Term Markets: Funds invested in derivatives (futures and options) and regardless of buyer or seller. Attention the leverage effect is important. |
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| FCP |
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| Common Investment Fund: A portfolio of securities managed by a professional and offered by banks or financial institutions. This type of product makes it possible to diversify its portfolio even if it is small. |
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| EDF |
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| It is the abbreviation of Federal Reserve, the US central bank | |
| FIXING |
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| Technique of determining the courses where the orders accumulate for a certain time and the fixing of a equilibrium course occurs at the end of the period. |
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| FLOATING |
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| It is the part of the capital of a company that is made available to the public. | |
| PENSION FUND |
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| An Anglo-Saxon fund set up by a company to pay a pension to its employees. It is the famous funded pension that is the subject of so much debate in France. |
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| OWN FUNDS |
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| The total assets of a company less all debts. | |
| FTSE |
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| English stock exchange benchmark with 100 securities. |
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| FUTURE |
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| Futures contracts | |
| GAP |
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| Price area in which no exchange of securities took place. So if a closing value of 25 euros, and opens the next day to 27 euros, we are in the presence of a gap between 25 and 27 euros. |
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| GEARING |
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| English name of the relationship between debts and equity of an enterprise | |
| GLOBEX |
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| It is an out-of-session electronic listing system that allows index quotations to continue outside market opening hours. | |
| GOOD WILL |
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| It is equal to the difference between the acquisition price in cash of a company and its net accounting asset. It will have to be amortized, it is called amortization of goodwill. If the impact of goodwill depreciation on cash flow is zero, it is not on the BNPAs. |
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| HEDGE |
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| Operation which consists of protecting a position against any risk of market reversal. | |
| HEDGE FUNDS |
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| Speculative funds | |
| HEDGING |
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| It is a futures market position to cover investment risks in physical markets. | |
| OUT |
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| Former market disappeared in July 1998. It included all types of companies. Financial reporting and transparency regulations were very limited. The companies present on this market have either been totally cancelled or joined one of the other markets on the Paris Stock Exchange. |
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| INTRADAYS |
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| Purchase and sale on the same day. These transactions tend to have low profitability, but their multiplication can rapidly increase portfolio gains. The Go / Go can be used either for specific announcements (sector, company...) or within the rating range which can sometimes be 3 or 4%. |
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| IT.CAC |
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| base 1000 to 30/12/98 A composite index of all TMT values, launched on 29 March 2000. |
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| IT.CAC50 |
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| base 1000 to 30/12/98 Index of 50 TMT values not belonging to CAC 40, launched on 29 March 2000, selected according to market capitalization and liquidity criteria. | |
| IX |
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| International Exchange Name of the new European stock exchange, composed of London and Frankfurt squares. This new entity constitutes the first European place with a capitalization of €4.3 billion |
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| JUNK BONDS |
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| »rotten bonds » Some high-yield but high-risk bonds are identified. They were born in the United States in the 1980s. |
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| KRACH |
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| Gross drop in the total value of the rating. One can speak of a real crash when it is impossible to rate CAC 40. In this case, a large percentage of values are likely to fall by more than 10%. The last real crash was that of 1987, and going further on Black Thursday at Wall Street in 1929. |
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| KRACH LARVÉ |
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| A soft crash is a crash spread over several weeks. The crash of September 1998 or October 1997 was undoubtedly a larva crash. All blue chips on the coast fell over a longer or shorter period before falling more abruptly thereafter. | |
| LEVER |
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| Raising capital. A company may decide to raise capital on the market by raising capital, e.g. issuing bonds. Lever is here synonymous with recovering. |
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| LOCKUP |
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| »Lockup clause » Period after the introduction during which the directors of the introduced company will not be able to sell their shares |
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| FREE MARKET |
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| The Free Market was created following the disappearance of the Off-Cote Market in July 1998. Although not regulated, the free market (or OTC) is organised by Euronext | |
| MAJOR |
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| Market at Terme International de France: This is the market which brings together the contracts of rates, indices and raw materials in France. Very large leverage and therefore highly speculative although it is the basis of a hedging market. |
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| MBA |
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| Gross Margin of Self-financing: Measure the company's ability to invest without using external resources = net profit plus depreciation and provisions. |
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| MIDCAC |
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| Average value index, calculated twice daily. |
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| MINORITY OF BLOKING |
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| Number of voting rights needed to block certain decisions at a general assembly. It is generally set at 1/3 of voting rights + 1 vote |
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| MONEP |
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| Paris Negotiable Options Market: It is the market for options on the CAC40 and about 50 of the most liquid values. |
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| NASDAQ |
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| »National Association of Securities Dealers Automated Quotation System » It brings together the technology values of the New York Stock Exchange. It is the largest market in the world in terms of transactions. This market has its index: the Nasdaq composite index. |
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| NIKKEI |
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| Index of the 225 most important securities on the Tokyo Stock Exchange. | |
| Nominal |
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| It is a contract that reflects the ten-year French interest rate trend. When the notional appreciates, ten-year rates relax, and vice versa. It's a form of bond barometer |
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| OBLIGATION |
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| An obligation is a debt obligation issued by a public or private company, a community or a State. It gives the holder an agreed income in advance. |
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| OCA |
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| Obligation Convertible to Action The holder may request the conversion into action of his obligation, instead of being repaid in cash. The remuneration is lower than that of a conventional obligation. |
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| OCEAN |
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| It is a convertible share obligation with an option to convert or trade into new or existing shares | |
| OPA |
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| Public tender An OPA is to offer shareholders of a company to buy back all their shares at a certain price. The OPA must necessarily cover all shares. The OPA allows to take control of the company. The price offered at OPA is higher than the exchange price. A hostile OPA is an OPA launched against society's opinion, while friendly OPA is launched with its agreement. |
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| UCITS |
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| Collective Securities Investment Organizations. They include SICAV and FCP. There are UCITS shares, UCITS bonds and other debt securities and money market UCITS. |
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| OPE |
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| Exchange Public Offer The OPE allows one company to take control of another, but the settlement takes place in shares instead of cash. The company launching the OPE therefore proposes to the shareholders of the other company to exchange their shares for its shares. |
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| OPR |
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| Public withdrawal offer The OPR is proposed to remove the company from the list. Shareholders holding more than 95% of the capital (a condition for launching an OPE) offer to buy back their securities at a price set by an independent expert. This offer may be compulsory, as minorities cannot refuse. |
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| ORA |
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| Bond Reimbursable in Action The holder will have his obligation refunded in title, without any choice. The remuneration is higher than that of a convertible share obligation (COA) |
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| PAY OUT |
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| Rate that measures the share of profits that are redistributed to shareholders. |
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| PEA: Savings in action plan |
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| Special title account created in 1986. It was intended to promote mass ownership. The EAP allows the management of a portfolio of French shares free of tax on dividends and capital gains, provided that no withdrawal is made over the five years following the opening of the plan. However, payments are limited to EUR 91 469 per person (2 x 91 469 or EUR 182 938 for a married couple) and the PEA does not escape from the RDS, CSG and social contributions (10% of total earnings at the end of the plan). |
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| PER |
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| Abbreviation for »Price learning ratio ». The RIP is calculated by dividing the market capitalization of a company by its consolidated net income. The RIP can also be calculated by dividing the share price by the result per share. |
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| MORE VALUE |
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| Difference between the sale price and the purchase price. | |
| PREMIUM |
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| This is the amount to be paid to obtain shares in exchange for a derivative. The premium corresponds to the combination of intrinsic value and time value. This is the price of the option | |
| SUBMISSION |
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| This is the difference between the issue price of the new share and its nominal value. | |
| PRICES |
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| As part of a capital increase, this is the subscription price of the new shares. | |
| EXERCISE PRICE |
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| Price payable by the holder of an option or warrant who wishes to purchase or sell the corresponding underlying asset. This price is fixed upon purchase of the option or warrant. |
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| PROFIT WARNING |
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| Profit Warning is a signal from a company to warn that its forecast results will be lower than the first estimates announced. Profit warning is often synonymous with a fall in the price of the title. | |
| PULL BACK |
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| At the crossing of a resistance, the value tests this resistance again. Thus if the price exceeds 15 euros (resistance) and rises to 16 euros, it is likely that the price will fall again on 15 euros in order to test this new support.
The pull back is also found when the value breaks a support. The title tests a few days after this new resistance (old support). |
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| PUT |
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| ( or sale option ) Right to sell underlying assets at a price fixed in advance for a specified period |
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| QUALITY |
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| Multiple of the minimum number of marketable unit securities to benefit from normal market conditions. |
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| RELATIVE |
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| Term used after an external growth operation (OPA for example). The transaction is referred to as a readmission if it results in an increase in profit per share. |
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| PERFORMANCE |
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| This is the total dividend ratio per share / stock exchange price. Net return is referred to as net return if it is calculated before tax. If calculated after this is an overall yield. |
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| REPORT |
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| Operation to extend its liabilities until the next maturity (liquidation) A carry-over involves financial costs, which vary according to the broker or bank. |
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| CURRENT RESULT |
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| Sum of operating income and financial profit. | |
| NET RESULT |
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| Sum of current and exceptional income to which taxes are deducted | |
| REVERSE |
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| We call »REVERSE » a Bear Certificate, i.e. a certificate that rises when the associated title, currency or index declines. Example of Reverse: Reverse CAC 5600 = (5600 – cac value)/10 Warning if 5600 is reached this certificate is definitely worth zero |
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| ROE |
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| Abbreviation for » Return on Equity » This is the ratio Net result group share / Equity after distribution. It calculates the profitability of the company's own funds. |
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| ROMPU |
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| Where a stock exchange order cannot be executed in full, the order shall be broken. Similarly, in financial transactions, the amount of rights that investors have does not always form a round figure, and one can therefore have a break (example if allocation of 1 free share every 10 shares and one owns 25 shares ) |
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| ESA |
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| Abbreviation for »Securities and Exchange Commission » This is the US equivalent of the COB. |
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| SECOND MARKET |
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| It is a market on the Paris Stock Exchange, established in 1983 and intended to host medium-sized enterprises. | |
| SHORT |
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| Position of a financial institution or investor who has sold securities that it does not own. |
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| SICAV |
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| Abbreviation for »Investment company to Capital Variable » These are companies that manage a securities portfolio. The capital of SICAV corresponds to the amount of assets managed and therefore varies daily |
|
| SICOVAM |
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| Abbreviation for »Interprofessional Society for Compensation of Mobilistic Values » The company assigns a code to each title. It also manages operations such as capital increases, coupon detachments, etc. |
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| COURSE SOCIETY |
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| Companies that act on behalf of their clients in financial markets. These companies can have a role ranging from mere transmission of orders in the market to advisory and analytical roles. |
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| SPLIT |
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| The transaction of dividing the nominal value of a security in order to improve liquidity. Example: Split by 10: The nominal value of the security is divided by 10 and in return the number of shares held is multiplied by 10 |
|
| SPREAD |
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| English term which refers to the difference between two interest rates or two maturities in futures markets. For example, we talk about »spread OAT Bund » for the difference in rates between France and Germany |
|
| SSII |
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| Abbreviation of »Company of Services in Computer Engineering » | |
| STELLING |
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| Strategy on Options for simultaneously playing up and down: purchase or sale of a call and a put of the same maturity and exercise price | |
| PLACE SYNDICATE |
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| These are the banks that invest securities when they enter the stock exchange or increase capital. | |
| T-BOND |
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| State duty. |
|
| MARKET KEEPER |
|
| Also says » Market Maker » The market content undertakes to purchase and sell securities, warrants or certificates at advertised purchase and sale prices. It is incontrovertible to market animation on the value in question by always offering possible consideration to buyers or sellers |
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| EFFECT |
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| Figure of graphic analysis that looks like two shoulders and a head. It is a turning figure. It announces a significant fall in prices | |
| Inverted EPALE-TETETE |
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| Inverse figure of the shoulder head. It announces an upward trend reversal | |
| TITRISER |
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| Conversion of debt into bonds | |
| TMT |
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| Value »TMT » is a value belonging to the sector of activity, Technological-Media-Telecoms. | |
| TRACKER |
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| Also known as ETF ( Exchange Traded Funds) These are publicly traded index shares. They were created in France in early 2001 |
|
| TRADER |
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| English term for » Speculator ». Refers to market operators acting on purchase and sale with a view to making short-term profits |
|
| VAD |
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| Abbreviation for » Short selling » Sale of shares which are not held in a portfolio with the aim of buying them later at a lower price. |
|
| DEFENSIVE VALUE |
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| These are values with good resistance in a low market. | |
| INTRANSEQUE VALUE |
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| Difference (if positive) between the price of an underlying asset and the price of an underlying asset option. |
|
| MOBILE VALUE |
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| General term for actions and obligations. | |
| NAME VALUE |
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| The result of dividing the amount of a corporation's share capital by the number of shares in that capital. Interest on an obligation is calculated on this value. |
|
| CYCLIC VALUES |
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| Values subject to cyclical fluctuations, i.e. a succession of phases of course rise followed by phases of descent | |
| GROWTH VALUES |
|
| Enterprises whose turnover is growing rapidly from one year to the next. | |
| VOLATILITY |
|
| Volatility is a mathematical expression that measures the extent of fluctuations in a title over a given period. Volatility is often calculated using the standard deviation of the value. |
|
| XETRA |
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| Frankfurt Stock Exchange Electronic Transaction System. | |
| YIELD |
|
| English term for performance | |
| ZINZIN |
|
| Name given to institutional investors (insurance companies, banks, pension funds ) |