Securities certifying that the holder (shareholder) owns a part of the assets of a public limited company. As a co-owner of a company, each shareholder has a law that does not have a temporary restriction, since the shares are issued for an indefinite period of time. Among the rights to which shares are entitled include, among others: The right to participate in general meetings of shareholders, the right to vote, the right to participate in liquidation and the resolution of shareholders may be entitled to the right to subscribe, the right to dividend.
Shares for which a shareholder is the owner of the share certificate and their holders are registered in the share register. Often, the consent of the management or supervisory board of the company is required to sell the registered shares.
Shares for which no shareholder is a shareholder in the share certificate. All shares admitted to trading on the Stock Exchange and the Central Table of Offers must be bearer shares. Their transferability can not be limited in any way. Preferred shares Shares with special powers that may concern: voting rights, participation in dividends, division of assets in case of liquidation of the company. Types of privileges must be recorded in the company’s statute, and their limits are set forth in the Code of Commercial Companies.
Shareholder. The name of the owner of registered shares is shown on the document itself. Shares may be in electronic form on the shareholder’s investment account (dematerialized shares).
Method of valuation of a security, based on the financial analysis of the company (indicators: profitability, liquidity, debt and activity), its position against the industry, the strengths and weaknesses of the company, the market (penetration).
A method of observing the past evolution of prices of financial instruments, the course of trends and draw conclusions about possible price movements in the future. It depends primarily on analysis of the securities market itself (course chart, trading volume and technical indicators).
The method of managing the assets held and the selection of investments so that, at the assumed profit rate, the minimum investment risk is minimized. It is based mostly on mathematical and statistical models of investment risk diversification.
A stock exchange member who, under an agreement with an issuer (a listed company), undertakes to maintain the liquidity of quotations of a given security. The animator’s actions consist in constantly submitting bids and sales. The terms of operation (operating time and spread) of the offers are specified in the agreement with the issuer.
A stock exchange member who, on the basis of an agreement with the Stock Exchange, undertakes to permanently submit bids for the purchase and sale of a given financial instrument for its own account on the basis specified by the Exchange Management Board.
An increase in the price of a good or commodity, used mainly for the increase in the value of a domestic currency relative to the foreign currency in a floating exchange rate system.
Conducting transactions to make profits without risk by concurrently concluding opposing transactions in two or more markets. On the futures market, it is also understood to be profitable by using the difference between the forward price and the spot price of the underlying instrument. Price differential and the cash register, called the base, is the basic variable used in arbitrage
Ordered by price limit and time of registration, listing of buy and sell orders for a given security, transferred to the Exchange.
The price offered by the seller of the currency or other financial instrument.
Portfolio management service and professional investment advice.
Combination of financial instruments previously registered under different codes. After assimilation financial instruments are listed under one code.
Long-term, strong downward trend on the capital market. Unlike the bear market.
A reference point to assess the effectiveness of managing an investment (investment portfolio). Benchmarks can be, for example, a portfolio or a stock index. It is often the goal of managing the investment portfolio to exceed that level.
One of the measures of investment risk in financial instruments. A factor to indicate how much the profit rate of a financial instrument will change if the index yields a benchmark for that instrument increase by 1%.
The price offered by the buyer currency or other financial instrument (bid price).
The price of the company’s share in the public offering on the primary market.
Price of exchange
Price at the time of converting a convertible bond to one ordinary share, paid by the bond purchaser.
(Cash Flow Indicator)
Relation of the share price to the cash flow per share. Cash flow is calculated as the sum of net profit and depreciation (P / CF-Profit / Cash Flow Ratio). The lower the potentially more attractive market valuation of the company.
(Price to Book Value Indicator)
The ratio of the market value of a listed company to its book value (P / BV – Price / Book Value). The lower the potentially more attractive market valuation of the company.
(Price to Profit Index)
The market value of a listed company and its P / E (Price / Earnings Ratio). For the purposes of calculating profit, the most recent four calendar quarters are used. In the case of companies operating in the form of capital groups, consolidated profit is taken into account. The lower the potentially more attractive market valuation of the company.
Securities issued by closed or mixed investment funds. They are a confirmation of participation in the fund. The investment certificate is indivisible, the certificates of a given issue represent equal property rights.
CME (Chicago Mercantile Exchange)
Commodity Exchange based in Chicago. CME was founded in 1898 as the Chicago Butter and Egg Board. On July 12, 2007 CME merged with CBOT. There are several types of financial instruments on the CME: interest rate contracts, shares, currencies and commodities. Also listed are weather derivatives.
CPI (Consumer Price Index)
Measures of inflation, index of prices increase of services and goods.
Member of the stock exchange
An entity conducting brokerage activities, being a stockholder of the Stock Exchange, authorized by the Exchange Board to act on the Exchange and entitled to enter into transactions.
Settlement date of transactions. Clearing of operations means that funds from the transaction are ultimately transferred to the buyer (seller) from the buyer (buyer). After the financial settlement, the acquired financial instruments are transferred to the acquirer (ownership). All the benefits of the securities (eg dividend, pre-emptive rights) are vested in the owner (that is, after settling transactions).
Session date of the order
The first date from which the order is valid.
DAX (Deutscher Aktienindex)
The most important index of the German Stock Exchange (Frankfurter Wertpapierbörse, Frankfurt am Main). Has launched July 1, 1988. Shows the change in the value of the 30 biggest companies in terms of capitalization and turnover. Expiry date of the order The last day of validity of the order on the Exchange.
Investment method consisting in opening and closing positions (buying and selling) during one trading session.
NASDAQ (National Association of Securities Dealers Automated Quotations).
Overturned, regulated stock market in the United States. NASDAQ was launched in 1971 as the first fully electronic securities trading system in the world. NASDAQ turnover exceeds NYSE (New York Stock Exchange) turnover.
Index illustrating changes in the prices of the largest listed companies in the Tokyo Stock Exchange.
A quotation system in which the fixing of the course and the transactions are performed continuously (throughout the continuous trading phase) directly in response to the market buying and selling orders.
A trading system in which the fixing of a course and transactions are made at specific moments of the trading session based on the buy and sell orders placed at a given moment.
Market price of a given financial instrument during the trading day.
NYSE (New York Stock Exchange)
New York Stock Exchange. It was founded in 1869, the second largest turnover of the stock exchange in the world. Bond Securities under which the issuer borrows (usually at the nominal value of the bonds). The bond buyer thus becomes the creditor of the issuer and most often collects interest on the face value of the bond.