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Recommend pageGlossary G to M
- General standards
- This is the market segment for small and mid-size companies primarily seeking national investors and interested in inexpensive listing.
This is the market segment for small and mid-size companies primarily seeking national investors and interested in inexpensive listing. Companies in this segment must comply with the minimum requirements of the official or regulated market.
- Profit-participation certificate
- definition:A security not governed by specific statutory requirements which, depending on its structure, may resemble a share or a bond.
A security not governed by specific statutory requirements which, depending on its structure, may resemble a share or a bond. As with bonds, profit-participation certificates generally guarantee repayment of the capital at its nominal amount at the end of their term plus a fundamental right to annual interest. However, like the dividend on a share, the interest depends on the issuing company’s profit performance.
- Regulated market
- definition:This is a segment of the stock exchange which permits easier access to trading compared with official trading.
This is a segment of the stock exchange which permits easier access to trading compared with official trading. The admission prospectus does not have to be as comprehensive. The compulsory announcements do not have to be published in the stock exchange press but can be made available for inspection at bank counters. This and other simplifications aim to make it easier for small and mid-size companies to float themselves on the stock exchange at minimum expense. Trading is subject to the same rules as official trading.
- Annual report
- definition:Report released once a year in which the listed company describes its business performance and condition.
Report released once a year in which the listed company describes its business performance and condition. It also includes and explains the financial statements. The annual report is made available to all shareholders.
- Closed-end fund
- definition:The sale of shares in closed-end funds is halted as soon as a predefined subscription volume is reached.
The sale of shares in closed-end funds is halted as soon as a predefined subscription volume is reached. It is not possible for the issuer to take back the shares during the term of the fund.
- Share capital
- definition:The capital stated in the company’s articles of incorporation.
The capital stated in the company’s articles of incorporation. The articles of incorporation also state the number of shares into which the share capital is divided. The company issues shares in an amount equalling its share capital.
- Annual general meeting
- definition:The shareholders of a company attend an annual general meeting at least once a year to elect the supervisory board and the auditor.
The shareholders of a company attend an annual general meeting at least once a year to elect the supervisory board and the auditor, to pass resolutions for the allocation of the company’s profit and for measures for raising capital, amendments to the articles of incorporation and other fundamental questions. Only here is it possible for the actions of the supervisory board and the management board to be ratified.
- Bull market
- definition:Strong, generally protracted increase in stock market prices.
Opposite: bear market.
- HGB
- acronym of:German Commercial Code
The German Commercial Code (HGB) is the main statutory instrument for business and, among other things, contains the provisions for the preparation of annual financial statements. Companies obliged to prepare financial statements, e.g. share companies, must compile their accounts in Germany in accordance with HGB. HGB accounting is based on the principle of caution, i.e. it seeks to protect creditors’ interests.
- HGB accounting
- definition:The German Commercial Code (HGB) is the main statutory instrument for business and, among other things, contains the provisions for the preparation of annual fincancial statements.
The German Commercial Code (HGB) is the main statutory instrument for business and, among other things, contains the provisions for the preparation of annual financial statements. Companies obliged to prepare financial statements, e.g. share companies, must compile their accounts in Germany in accordance with HGB. HGB accounting is based on the principle of caution, i.e. it seeks to protect creditors’ interests.
- IFRS
- acronym of:The International Financial Reporting Standards (IFRS)
The International Financial Reporting Standards (IFRS) are globally accepted accounting rules.
- Index
- definition:Figure allowing changes in certain parameters to be tracked and compared, particularly changes in value or price.
Figure allowing changes in certain parameters to be tracked and compared, particularly changes in value or price. A stock index reflects the performance of a sector or national market. Indices for the German market are calculated by Deutsche Börse AG, a number of banks and various newspapers.
- Bearer share
- definition:Shares in which the bearer may exercises the rights.
Shares in which the bearer may exercises the rights. The shareholders are not known to the company.
- Insider
- definition:Refers to persons who have access to privileged information on account of their professional status or due to other factors.
Refers to persons who have access to privileged information on account of their professional status or due to other factors. Such privileged information may not be used in securities trading; breaches of this rule are punished by imprisonment or fine.
- Investment certificates
- definition:Certifications embodying a share in the assets of an investment fund.
Certifications embodying a share in the assets of an investment fund. These assets include bank balances (liquidity) and particularly securities, i.e. depending on the type of investment fund fixed-income securities or equities, holdings of which are highly diversified.
- IR
- acronym of:Investor Relations
- ISIN Number
- acronym of:International Securities Identification Number
The International Securities Identification Number (ISIN) is a unique international code assigned to each security and has since replaced the German WKN code.
- Annual financial statements
- definition:The annual financial statements comprise the balance sheet and income statement of a company.
The annual financial statements comprise the balance sheet and income statement of a company. In the case of stock corporations, they are prepared by the management board, examined by a public auditor and reviewed by the supervisory board.
- PER
- acronym of:The price/earnings ratio is the quotient of the company’s current stock price and its annual earnings.
The price/earnings ratio is the quotient of the company’s current stock price and its annual earnings. The lower the PER, the “cheaper” the stock. The PER reflects investors’ expectations as to future earnings growth. The greater the expected earnings growth, the higher the PER.
- Unofficial trading
- definition:Professional securities trading by brokers and banks engaging trading for their own account.
- Coupon
- definition:Special security forming part of the share.
Special security forming part of the share. Upon presentation of the coupon, the dividend is paid out. Fixed-income securities also have a coupon.
- Official broker
- definition:Official brokers are appointed by the government and are responsible for fixed the price of securities in official trading.
- Price
- definition:The price of a share is determined by supply and demand in the stock market.
The price of a share is determined by supply and demand in the stock market. It is not the same as the nominal value of the shares.
- Limit
- definition:This refers to the definition of a maximum or minimum price for buy or sell transactions.
- Listing
- definition:
- Makro location
- definition:The extended region in which a property is located, i.e. including its catchment area, e.g. suburb, city or region.
- Share certificate
- definition:Each share certificate includes a sheet with ten or twenty coupons and a renewal coupon.
Each share certificate includes a sheet with ten or twenty coupons and a renewal coupon. The dividend is paid to the shareholder directly by the company or, more normally, the bank upon presentation of a valid coupon. These documents are stored separately by banks for security reasons.
- Market capitalisation
- definition:Stock market value of a company (stock price times number of shares).
- MDAX
- acronym of:(Midcap-Index)
The MDAX reflects the performance of the 70 largest listed German companies after the 30 DAX companies. In addition to dividend payments, the index also includes proceeds from subscription rights. The index was commenced in 1987 at a level of 1000 points.
- Micro location
- definition:The property itself and its immediate environs.