A
A share issued with warrant(s) during a capital increase. The warrants are detached from the new share and then listed separately.
Securities backed by assets that are generally created during a securitization process.
A share is a fraction of the business. A shareholder has securities representing part of the capital of a private company. This gives it the status of partner and the benefit of certain rights: the right to dividends distributed by the company, the right to vote at general meetings, the right to oversee management (communication of documents and General Meeting).
A technique allowing the acquisition of public securities (Treasury Bills and Treasury Bonds) through a bidding system.
An issuance exclusively reserved for Primary Dealers (SVT) of the issuing State, under the advantages and privileges granted to them, allowing them to directly submit bids for the acquisition of securities.
A method allowing direct participants in public securities auctions to have the opportunity to acquire a portion of the securities put up for auction by the issuer.
Credit institutions, SGIs, and regional financial organizations holding settlement accounts at the Central Bank.
In finance, the term refers to a transaction in which a financial institution links a financial or banking operation, such as a loan or an investment, with another operation of the opposite nature.
The transfer of trade receivables from their holder to a factor who is responsible for collecting them and guarantees their settlement, even in the event of temporary or permanent default by the debtor.
A body responsible for assessing the risk of non-repayment of debt or a loan by a State, a company or a local authority. Remunerated by the applicant for financial rating, it produces, on an indicative basis, tools that estimate insolvency risks.
A financial operation designed to guarantee a positive or zero gain with certainty by taking advantage of temporary price differences observed between different securities or contracts.
When a company needs funds, it can proceed with a capital increase. It offers – generally to former shareholders – to subscribe to new securities at a price in principle lower than the last stock market price.
Self-financing is the ability of a company to finance its operations and investments using its own financial resources. It is an internal financing method.
Bodies responsible for overseeing the regulation and functioning of financial markets.
Monetary authorities define the monetary aggregates that are most closely correlated with economic activity in order to more effectively monitor monetary developments and implement monetary policy.
A transaction notice is a summary document sent by a Securities Management and Intermediation Company (SGI) to a client, following a transaction carried out on their behalf on the market. It includes all the characteristics of the executed instruction, including, for a stock market order, the direction (buy or sell), the quantity, the price, the date and time of execution, and the pricing.
The public offering consists of the admission of a financial instrument to trading on a regulated market or, by the issue or sale of financial instruments to the public by using advertising, canvassing, or financial intermediaries.
The Ordinary General Meeting (OMG) is the shareholders’ meeting held at least once a year by the companies for the approval of the accounts, the distribution of dividends, the modification or renewal of the board of directors, the presentation of the Annual Report …
The Extraordinary General Assembly (AGA): exceptionally to take certain important decisions such as changes to the articles of association, capital increases, the issuance of bonds, etc.
Désignation par tirage au sort du vendeur de l'option quand un acheteur exerce son option
An issuance technique that allows an issuer to consolidate all its securities in circulation on the market. Each new issuance tranche is attached to previous tranches and retains the same characteristics (unit par value, maturity date, interest calculation basis).
The shareholder is co-owner of the company in which he has invested. He takes part in general meetings, he is informed about the profit and loss accounts, he receives a dividend.
An administrator is a person in charge of looking after the property of another person, or, for another example, the affairs of a corporation. An administrator can be given a mandate by another person or be appointed by decision of a court.
An administrator can thus take care, if necessary, of the estate of a deceased person when there is no will or if no executor has been appointed in the will.
A transaction notice is a summary document sent by a Securities Management and Intermediation Company (SGI) to a client, following a transaction carried out on their behalf on the market. It includes all the characteristics of the executed instruction, including, for a stock market order, the direction (buy or sell), the quantity, the price, the date and time of execution, and the pricing.
Companies often allocate free shares and distribute shares without financial compensation. This operation is generally reserved for former shareholders.
When a company needs funds, it can proceed with a capital increase. It offers – generally to former shareholders – to subscribe to new securities at a price in principle lower than the last stock market price. (see subscription right)
B
A certificate that gives its holder the right to purchase a share at a pre-set price up to a specified date.
An English term referring to a fixed-income debt security (obligation).
A professional whose role is to execute buy/sell orders for securities in exchange for a commission on each transaction. Brokers are independent intermediaries acting between the investor client and various banks offering investment products.
An individual who invests in companies, most often young (startups), innovative ones with high growth and development potential.
C
Private equity is an investment method where the investor devotes capital to the development or acquisition of a company that has growth, transmission or restructuring needs.
A guarantee that ensures the buyer the payment of a penalty in the event of non-performance by the bidder of the obligations arising from their bid.
A guarantee (surety, endorsement, etc.) given by a bank. This commitment gives rise to a commitment fee. The guarantee can be provided for a rental deposit, for example, or a loan.
Joint financing of a project by two or more financial institutions.
Represents the interest accrued between the date of the last coupon paid and the date on which the bond is traded on the stock market.
A loan that allows money to be borrowed for an acquisition while waiting for the borrower's property to be sold. The maximum duration is 24 months, after which the borrower repays the loan in a single payment.
A platform developed to allow as many people as possible to acquire shares in a company (and thus become a shareholder) or to lend it money (like a bank).
D
The date from which the interest on a loan begins to accrue and from which a share entitles the holder to the payment of a dividend.
A negative gap between a company's stock market capitalization (asset price × number of securities) and its net asset value.
A dividend increased by up to 10%, granted to loyal shareholders (those who have held registered shares for at least two years).
A measure of the average lifespan of a bond at a given date. It is the period during which the investor must hold the security if they want to be certain of achieving the actuarial yield rate calculated at the date of purchase.
Fees charged by the intermediary for the maintenance of the securities account.
A right granted to existing shareholders, on a priority and proportional basis, to subscribe to a cash capital increase.
A right granted to existing shareholders to enjoy priority in the allocation of free shares during capital increases through the incorporation of reserves.
When new shares are allocated free of charge, the former shareholder detaches one allocation right from each of the shares he or she holds. With ‘n’ rights, the former shareholder obtains one or more free shares.
E
A position involving the purchase and sale of options of the same nature or futures but with different characteristics written on the same underlying security. It also measures, in the case of bonds, the rate differential between a bond's yield and the risk-free rate.
An auction issuance method by a single issuer, consisting of offering several public securities (up to 3 securities) in OATs & BATs, with distinct characteristics and issued at the same time.
In accounting, equity represents the value of a company at a given point in time. It represents the investment made by shareholders either at the company's creation or during subsequent fundraising rounds.
F
The fraction of a company's capital placed on a regulated market so that investors can buy or sell these securities outside of statutory conditions or shareholder agreements.
Transactions in which a company is sold to another (acquisition) or two companies exchange their shares to become one (merger).
A sovereign wealth fund is a state-owned public investment fund that invests in listed or unlisted equities.
I
It is the official measure of market performance based on a basket of securities.
L
The structuring and execution of debt financing for clients (companies or investment funds) generally seeking to acquire companies.
LBO (LEVERAGED BUYOUT) is financial technique used in private equity to finance the acquisition of a company through borrowing. A holding company finances all or part of the buyout of a company by resorting to bank or bond debt.
M
A contract whose purpose is to delegate the management of one or more client accounts to a bank or an accredited wealth management firm.
Expresses the time that must elapse between any given date and the repayment of the loan.
A market reserved for professionals where securities of companies not yet listed, such as those undergoing privatization, are traded. It can be considered a good price indicator before the official listing.
N
A real security taken by the bank on an asset or account of one of its clients for the granting of a credit.
An agreement by which the parties to a negotiation, agreement, partnership or cooperation undertake not to disclose certain information that must remain confidential.
Credit rating is a technique used to measure the solvency and willingness of a borrower to meet their short and/or long-term obligations.
O
A company wishing to acquire a listed company can offer a single purchase price for all the shares tendered.
Undertakings for the Collective Investment in Transferable Securities. The term covers SICAVs and FCPs. In both cases, the investor holds a share of the securities managed by the organisation.
A listed company can acquire another listed company by offering its own shares as payment for the tendered securities.
A stock market listing procedure that sets both the quantity and the fixed price of the securities to be sold.
P
Also called face value or nominal value of a share or bond.
The Price Earning Ratio is the capitalization coefficient of earnings. PER = share price / earnings per share. It allows a quick comparison of the relative value of shares.
Consisting of a cash account and a securities account, the PEA allows the purchase and sale of transferable securities, benefiting from a more flexible tax framework.
The minimum level of turnover required by a company to cover its fixed costs. When this level of activity is reached, the company covers its costs and begins to make a profit.
The value at which the bond will be redeemed upon its maturity.
R
The total amount lent that the lender will grant relative to the value of the asset provided as collateral in a mortgage loan (amount to be refinanced / value of the real estate).
This is when the bond contract stipulates that the borrower will be repaid in a single lump sum at maturity.
This is when the contract stipulates a periodic repayment (or amortization), which is then spread over the entire duration of the loan.
S
A method referring to the grouping of several partner financial institutions, forming a lead manager composed of SGIs.
T
V
- Day validity means that the order is valid only for the current day. This is the default validity if no indication is given by the originator.
- Date validity means that the order is valid until a specific date. This date must not exceed the maximum term set by the financial intermediary.
- A Revocation means that the order is valid until the maximum term set by the financial intermediary.