Document representing an annual report of the activity of a firm or a group of companies, and published after the closing of the fiscal year.
Financial transaction consisting for an investor in buying bonds to a seller who takes the irrevocable commitment to buy them back at an agreed date and exchange rate.
In the exchange field : index of reference of investment funds.
The knowledge of the benchmark gives the possibility to judge the quality of the investment funds by comparing its results and its index of reference.
Term indicating securities of first order, the shares of large industrial companies and which are the object of important volumes of exchange.
Negotiable evidence of indebtedness, representing a fraction of a bond issue by a company or public body.
Replacement of a bond by another, on the initiative of the issuer. The carrier then have the possibility to refuse conversion and choose the immediate repayment of his bonds.
Management of a securities portfolio by undertakings for collective investment (mutual fund) which collect capital stock and invest them in Stock Exchange. The customer receives shares of mutual fund.
Dividend of a share, interest of a bond.
They are so designated because before the dematerialization of the securities, they comprised a sheet divided into small numbered rectangles (coupons) which were to be cut out and given to the company for the perception of the interests or the dividends.
Share of which whole or part of nominal was refunded to the shareholders, by withdrawal on the reserves, often as an advance on the product of the forthcoming liquidation of the company.
Legal transaction by which a giver, while still living, transfers irrevocably, freely and without delay, the property of a good to a donee who accepts it.
In France, a donation is generally certified by an act drawn up by a notary.
Medium term bond whose issue is uninterrupted, in accordance with the principal characteristics defined within the framework of a program of issuing : currency, ceiling of the issuing, duration, maturity…
Security giving the possibility to subscribe a share or a new bond at a certain price during a certain period.
Legal transmission of a dead person property to living people (heirs).
The recipients can be private individuals or body corporates.
The settlement of an estate depends, inter alia, of the marriage settlement.
When occures the death of a customer, the bank is held to adhere to some rules (possible blocking of the accounts...).
Mutual fund whose objective of management is to reconcile profitability and morals concerns.
The principal categories of ethical funds relate to :
Company of Dutch law merging in one single market the Stock Exchanges of Amsterdam, Brussels and Paris.
Joint ownership of securities and sums placed in the short run, without legal status, managed by a company of management acting on behalf of the carriers of shares emitted by the Mutual Fund.
French type of mutual funds, created in 1997, intended to support the development of innovating firms.
The capital collected by a FCPI is invested at least up to 60 % in the capital of non listed companies, or of limited liability companies, to which the Agence nationale de la valorisation de la recherche (ANVAR) gives the label "innovating".
Subject to keep the FCPI shares during at least five years, the subscriber profits from tax advantages at the time of the subscription (tax cut) and at the time of the resale (possible exemption of the cashed products and the appreciations in certain cases).
Undertaking for collective investment in securities (mutual fund) whose assets are invested in other mutual funds and not directly in shares or bonds on a market.
In France, bonds from a same issuer cannot represent more than 10 % of the assets for the same category of bonds.
Investment funds whose objective of management is to obtain the best possible output for the funded capital, which implies the taking of important risks.
Commercial or civil company owning stakes in other companies which it controls and directs without dealing directly with the exploitation.
Regulated market of financial instruments in the long term on which are negotiated purchases and sales of contracts or options on financial instruments and goods.
Operation by which a company transfers the whole of its property to an absorbing company, against the attribution of shares of the latter to the shareholders of the former company, with possibly a balance in cash.
Regulated market of long term conditional financial instruments on which contracts of options on shares and indices are negotiated.
French type of mutual funds, created in 1983, intended to help the development of powerful but little known Small and medium-sized firms, because of their recent creation, by taking significant stakes in their capital.
French type of mutual funds, created in 1983, intended to help the development of powerful but little known Small and medium-sized firms, because of their recent creation, by taking significant stakes in their capital.
It is equal to the net income of a company divided by the number of shares which make the capital stock.
For a deposit : capital amount deposited in accordance with the subscription of a service (term savings certificate, certificate of deposit...).
For a loan : amount of the granted loan.
Optional contract being the subject of a negotiation on the MONEP and bearing on some shares.
Securities known as negotiable supports of options are the only one concerned.
There are around fifty of them, selected among the most active securities of the Monthly settlement market (RM) and of the CAC 40 index.
There are short options, which can be exerted at any time until their expiry and long options, which can be exerted only at the due date.
The options are negotiated by batches.
Management of a customer's securities portfolio who empowers a specialist in the bank to carry out the purchases and the sales on his behalf.
The mandate clearly defines the degree of risk accepted by the customer as well as the fields of intervention (long term market, derivative, etc).
Qualitative evaluation reflecting the opinion of a rating agency on the quality of a bond, a company, a State…
Nature of a bond whose owner is designated by name and registered on the register of the issuer.
According to the Banque De France :
1. Are considered as "Resident" :
- private individuals having their principal center of interest in France ;
- the French or foreign body corporates (except for the diplomatic and consular representations) having an establishment in France.
2. Are considered as "Non-resident" :
- other individuals (in particular those of french nationality who acquire the quality of non-resident as of their installation abroad, except for the civil servants),
- the other body corporates.
As regards stock exchange activities, this term indicates more particularly the shares, the bonds, the revenues.
In France, since the dematerialization of the bonds, there remains only of the inscriptions in account.
Marketable security issued by a company and representative of a quota of its capital stock.
It confers to its owner, the shareholder, the quality of partner.
Company having a legal status and which purpose is the management of a portfolio of bonds for the account of its shareholders.
French organization in charge of facilitating, by operations of transfer from account to account, the circulation of the securities between its partners…
Reduction of the nominal value of all the shares of a company by increasing the number of outstanding shares of stock.
Part of the capital of a firm held by an individual or a body corporate, conferring a right to the distribution of the profit and more generally to management.
Term used to indicate a regulated market where are swapped the offers of sale and purchase of goods, of securities, of services, of financial instruments…
Selection of some shares according to their prospects for intrinsic output rather than their membership to a branch of industry.
Generally the performances of the selected shares are definitely higher than those of the market.
In France, action to transfer to different people the various attributes (right and bonds) from a property right on a good.
The stripping of the property right can result from a legal bond (in the event of estate) or from the will of the parties (donation-sharing...)
Operation by which one or more body corporates or natural persons make known publicly their intention to acquire all the shares of a certain company, negotiated on a regulated market.
Investment fund which aim is to duplicate an index of security prices and which is listed on a stock exchange like a stock.
Master share CAC 40, launched by Lyxor asset management, a Société Générale subsidiary, was the first tracker listed in France.
Specific nature of share of a company assigned to a specific category of assets, to a subsidiary, or even to an activity in the company.
The trackshare holder's rights (dividends, etc.) are indexed on the performances of the considered assets, as well as on the corresponding appreciations in the event of divestment. The tracking shares thus make it possible to financially isolate the results provided by a class of assets.
The tracked assets still appear in the balance sheet of the issuer, which comes down to saying that the holders of such shares have only a general right on the assets of the company, as the ordinary shareholders. The definition of the perimeter of the tracked assets implies a specific book-keeping, but also delicate comparative economic analyses with some risks of conflict between the various activities.
The firms may find it beneficial sometimes to issue such shares to facilitate and channel the creation of value in the event of reconciliations. Tracking shares are mostly found in the United States.
Financial stake taken in :
- an innovating project
- the creation of a new company,
- accompaniment of the expansion of a firm.
In the stock exchange field : Type of spread on the option markets, consisting in simultaneously carrying out the buying and selling of two options of the same class and with the same due date but different strike prices.
Relative amplitude of the variations of a bond exchange rate around its average value.
Volatility constitutes an indicator of risk : the higher it is, the larger the risk.
Mutual fund created by a firm to invest the saving of its employees in bonds issued by the firm (shares, certificates of investment, bonds...).
Financial instrument conferring to its holder the right or the obligation :
- to acquire (option to buy or "call warrant") or to yield (option to sell or "put warrant") subjacent assets at a given price, at the due date or during one defined period.
- to cash (in the case of an option to buy) or to pay (in the case of an option to sell) an amount corresponding to the difference - when it is positive - between the exchange rate of the subjacent assets at the date of exercise and the price of exercise of the warrant fixed in his contract of issuing.
Chart of the whole of the interest rates in force on the market according to the duration of the investments.
The yeld curve materializes the gap between the short term rates and the long term rates. Usually the short term rates are lower than the long term rates, except in the event of inversion of the yeld curve.
The fund managers use this yeld curve and try to anticipate its movements to optimize their profits.
Bond not offering to the bond-holder any payment of interest, but only the payment of a lump sum at maturity.
