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Financial Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

 

A

 

B
  • Bearer security: Bearer securities accounts are held by a financial intermediary of your choice (credit institution or investment company), and are therefore not known to our Company. This system enables you to group all the securities in your portfolio within a single account.
C
  • Capital gain: Positive difference between the price received at the time a share is sold and its purchase price. When this difference is negative, we talk about a capital loss.
  • Combined General Meeting: During the same meeting, certain resolutions fall within the scope of the Ordinary General Meeting and some within the scope of the Extraordinary General Meeting.
D
  • Deferred settlement service (DSS): Market where the main French and foreign shares are traded.
  • Direct registered account: The securities are directly and exclusively registered in our Company’s ledgers.
  • Dividend: A share of net profits, including earnings carried over previous years, plus available reserves, that can be distributed among shareholders. The Shareholders’ General Meeting sets the amount per share and the payment date.
E
  • Euronext Compartment: Since February 2005, listed companies are classified in alphabetical order, and are identifiable by a capitalisation criterion that enables investors to distinguish between: - Compartment A for capitalisations above €1 billion; - Compartment B for capitalisations between €150 million and €1 billion; - Compartment C for capitalisations below €150 million.
  • Ex date: Date from which the shares are traded on the stock market without a right to the forthcoming dividend payment.
  • Extraordinary General Meeting: Meeting at which matters other than ordinary events for the company are addressed. Resolutions proposing by-laws modification should be amended in extraordinary meetings.
F
  • French Financial Markets authority: Created by the French financial security act of August 1, 2003, the French stock market regulator AMF stems from the merger of COB (Commission des Opérations de Bourse), CMF (Conseil des Marchés Financiers) and Conseil de discipline de la gestion financière. It is an independent public body in charge notably of checking the information provided by all listed companies and all savings organizations. AMF ensures that the various financial markets run smoothly. It can directly impose sanctions in the event of stock market-related offences.
G

 

H

 

I
  • Investment securities: Investment securities are marketable securities that represent a right or a receivable. They may be listed on the stock market. The two main categories of investment securities are shares and bonds. There are other categories, like investment certificates, warrants, treasury bills issued as a series, and UCITS, etc.
  • ISIN code: The code number for a stock-market listed security.
J

 

K

 

L

 

M
  • Managed registered account: The securities are registered in our Company’s ledgers, but are held by the financial intermediary who manages your securities.
  • Market capitalization: The stock market value of a listed company. Obtained by multiplying the number of shares in the company by the share price.
N

 

O
  • Ordinary General Meeting: This is the company shareholders’ meeting. It is held at least once a year, in the six months following the end of the financial year, and its main aim is to present the way the company’s business performed to the shareholders. An OGM has several purposes, including the approval of the financial statements and of the dividend, as well as the appointment of directors.
P
  • Par value: The par value (or “par”) of a share is the result of dividing the company’s share capital by the number of shares issued.
Q
  • Quotation: Quotation or listing determines the market price for a security at a given moment.
R
  • Record date: The date on which positions are closed at the end of the trading day by the Central Securities Depository, in order to identify the shareholders who will receive the dividend.
  • Registered security: This shareholding method enables us to identify you and to establish a direct and customised contact with you. There are two forms of registered share account: managed registered accounts, and direct registered accounts.
S
  • SBF 120: A Paris stock market index (base 1000 on 12/31/90), recalculated every 30 second on the basis of a panel of 40 stocks selected for their representativeness and size and constituents of the CAC 40:  as well as a selection of 80 additional stocks listed on the Premier Marché and Second Marché under Euronext Paris. SBF stands for “Sociétés des Bourses Françaises”.
  • Security: The term “security” is used as a synonym for “investment security”, the category to which shares belong, inter alia.
  • Share: A negotiable security representing ownership of a fraction of a corporation’s capital.
  • Stock market index: A stock market index is a value calculated by combining the securities of several companies, and which is used to represent a stock market or a specific market sector.
  • Stock Market Price: This is the purchase price for a share that an individual is prepared to pay to a shareholder who agrees to sell him the share at this price. In principle, this price reflects the value of the company, based on its net assets and forecast results; however, it may also be the result of various assessments, or be affected by events outside the company’s control.
T

 

U

 

V

 

W

 

X

 

Y

 

Z