Securities and foreign exchange – Vocabulary and Phrases
to issue stocks/shares/equities/bonds – print, or publish for sale or distribution
The government issued bonds to pay for the rescue of the tornado victims.
blue-chip – relatively risk free shares of a company with a good record of dividends
It is widely known that blue-chip shares enjoy a greater volume of trade than smaller market-traded companies
to float a company/flotation – to offer company's shares to the public for the first time
Several days after its flotation, the company is trading about €10 over its issuing price of €35 a share.
quote, to be quoted on a stock exchange – The last price at which a security or commodity traded, meaning the most recent price on which a buyer and seller agreed and at which some amount of the asset was transacted.
Movado is a group based in the United States, a country in which it is customary to be quoted on the Stock Exchange, whatever the size of the company.
listed/unlisted companies – companies whose shares of stock are traded on the securities market
SG ranks first of the financial entities listed at the Bucharest Stock Exchange and second of all the listed companies.
nominal/face value – the value written on the share
Danone approved the division by two of the nominal value of the shares of the Company from ' 0.50 to ' 0.25.
to pay a dividend – a share in the annual profits of a limited company, paid to shareholders
The Company paid the dividend in December 2001 at the rate of $.05 per share, or an aggregate amount of $75000.
bear market – A market condition in which the prices of securities are falling or are expected to fall.
Due to the bear market in resources from 1981 to 2000, not enough people chose a mining profession as a career.
bull market – A financial market of a certain group of securities in which prices are rising or are expected to rise.
Even in the face of a bull market condition their shares are having some trouble.
bearish – pessimistic
Concern over the US interest rates has further deepened the bearish sentiment across the global equity market.
bullish – optimistic
Portfolios emphasizing growth are first choice for bullish investors, especially if they follow long-term goals.
insider – person who occupies a position of trust within a company and possesses information not known to the public
He used insider information to manipulate share prices.
ordinary shares – Any shares that are not preferred shares and do not have any predetermined dividend amounts, it gives the owner the right to share in the profits of the company.
Dividend has been distributed to holders of ordinary shares over 2004.
preference shares – shares which usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares.
Telecom-staff bought preference shares of each of the three branches (in the. years 1996, 1999 and 2000).
deferred shares – receive a dividend after all other dividends have been paid
Holders of deferred shares had access to all the remaining profits after all obligations were met.
bearer share – issued to a bearer, not a named person
A shareholder may ask for his bearer shares to be represented by a third party, whether or not that person is a shareholder.
qualification/qualifying share – its holder qualifies for election as director of the company
The plan gives Quebec investors a fiscal incentive to purchase "qualifying shares" of companies who have been accepted for the plan.
golden share – a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the process of privatization and transformation into a stock-company.
Lange still has his golden share and can veto any plans to move from Griffin Park
bonds – a certificate of ownership of a specified portion of a debt due to be paid by a government or corporation to an individual holder and usually bearing a fixed rate of interest.
The interest paid on government bonds is fixed for the term of. the bond, so they are not the favourite of some speculators.
coupon – attached to bonds, either physically, as with old bonds (with a stapler), or electronically. Each couponrepresents a predetermined payment promised to the bond-holder in return for his or her loan of money to the bond-issuer.
There are several factors that affect the coupon on the bond, including credit rating, industry sector of the issuer, maturity of the issue, overall level of interest rates, etc.
zero coupon bonds – pays no interest, but is sold at a large discount and ultimately redeemed at face value, providing a capital gain
Income from a zero-coupon bond comes completely from the bond appreciating in value over time.
serial bonds – an issue that matures in parts at stated intervals
The county issued serial bonds payable annually from October 1, 2006 due in annual instalments varying from 21,000 dollars to 63,000 dollars.
redemption price, to redeem bonds – the price at which a bond may be redeemed before maturity at the option of the issuing company. Also, the price the company must pay to call in certain types of preferred stock
The Company redeemed the bonds at their earliest redemption date of November 1, 1999.
maturity/to mature – the date when the principal of a redeemable security (a loan, a bond, etc.) becomes repayable; to become due for payment
After the bonds reached maturity, he used them to pay state property taxes.
commodities – Stock Exchange. any unprocessed or partially processed good, as grain, fruits, and vegetables, or precious metals.
Investors have made a tidy profit, as prices of commodities such as base metals have risen 52 percent in the last 12 months.
futures contract – an agreement giving an obligation to sell a fixed amount of a security or commodity at a particular price on a particular future date
An oil producer can arrange a futures contract for the sale of his oil in 1 years time. That way he knows exactly how much money he will make.
options contract – an agreement giving the right, but not the obligation, to buy or sell a security or commodity at a particular price at a particular future time, or in a period of future time
An options contract to buy shares of stock at $10 at a future date becomes useless if the price of that stock drops to $9.
speculation, speculator, to speculate – dealing in a commodity or financial asset in the hope of making a profit on changes in market values (done by speculators)
After several profitable trades, many speculators become wild and unconservative.
a bid – an offer to buy something at a particular price
A group of investors holding more than 40% of the company made a bid to buy out the remaining shareholders at €18.90 a share
to subscribe for shares (subscription) – Newly issued securities that an investor has agreed or stated his or her intent to buy prior to the issue date.
Ms. Lai subscribed for 2000 shares, representing 20% of the then issued share capital of WL Ltd.
to oversubscribe for shares – to subscribe for more of than is available, expected, or required
The Sectra share public offering was oversubscribed by 5.1 times.
bear raid – an occasion when someone suddenly sells a lot of shares in a particular company in order to bring down prices
a bear raid by Saudi traders, who hoped to buy the gold back cheaply after depressing the price
dawn raid – an occasion when someone buys a lot of shares in a company in the first few minutes of the day's trading, in an attempt to get control of it
A dawn raid allows the build-up of a significant stake in a target company within a matter of hours, giving the board of the target company little time to react or advise its shareholders.