Across
- 1. Instrument The instrument such as shares, commodities, currencies or indices on which warrants or options contracts are based.
- 3. The date at which your positions will be recorded in order to calculate your entitlements. So for example; if the positions in your account on record date are 100,000 shares and a cash dividend pays EUR 0.25 per share then your entitlement will be calculated as 100,000 x EUR 0.25 = EUR 25,000.
- 5. The percentage of the nominal of a loan that will be paid to the lender as a reward for his willingness to lend the money to the borrower.
- 7. In case of a tender offer or miscelanous offer, the accetance period is the period in which shareholder can accept the offer. They would usually do so by sending an instruction to their broker or custodian.
- 11. Form of debt. Like a bond it pays a fixed rate of interest.
- 13. A contract giving the investor (the buyer of the call option) the right, but not the obligation, to buy shares at a fixed price (the strike price) within a certain time frame (up to the expiry date of the contract).
- 14. The delivery of the cash and stock proceeds as a result of a corporate actions event.
- 15. A dividend that is paid during the cause of a dividend year. In most cases a final dividend will follow.
- 17. Compensation is the amount of money or amount or additional securities a purchaser receives from the seller if he had bought the shares before the exdate of the event and the shares settled in his account after the exdate.
- 19. Rights in a rights issue event and warrants can lapse if they are not sold or exercised by the owner before the deadline. Lapsing can be either "worthless" or "versus money". In case rights or warrants lapse worthless, they will just be booked out of the account of the investor free of payment on the day they lapse. In case of for example a rights issue the rights can be bought by interested parties after which they can be booked out of your account versus payment.
- 20. A derivative security that gives the holder the right to purchase or sell securities from or to the issuer of the warrant at a specific price within a certain time frame. No dividends are being paid on warrants and warrants can be traded on the market
Down
- 1. In the case of rights issues or IPO's, the issuing company can look for assurance that the issue will be successful. It can chose to sign purchase agreements with intermediaries who agree to buy all the newly issued shares that they can't sell to the market. That way, the company can be sure it will receive all the money it was looking for and the issue will be classified as successful by the media and investors (preventing reputational damage for the issuer). Underwriting can be a tricky business. In case the price proves too high and no other investors take up on the offer, the underwriter has to buy all the securities at a high price. Underwriters charge a fee to the issuer for their services.
- 2. Default refers to the course of action that will be taken in case no instruction is received from the shareholder as to what decision to make.
- 4. A future is a contract between a buyer and a seller whereby the buyer agrees to buy a predetermined amount of a product at a predetermined price at a predetermined date in the future. Please note the difference between a future and an option: with a future, there is the obligation to buy/sell, whereas with an option there is the right to buy/sell.
- 5. International Seucrities Identification Number. Every security has got their own unique Identification number. The number starts with the letters of the country of its main listing.
- 6. The market value of a share is the price at which it is being traded on the stock exchange. There are many methods to establish the value of a share.
- 8. A bond that may be converted into a fixed number of shares (sometimes at a fixed price). There can be certain timeframes in which conversion is not permitted during a year. Sometimes conversion is only possible at a certain date(s) during the year. If the Bond has not been converted into shares at maturity, it will be redeemed for cash just like any normal bond. Convertible bonds pay interest just like normal bonds.
- 9. When one company takes over another company.
- 10. Similar like ISIN, but one Isin can have several sedols, each of them representing the country where the shares are being held.
- 12. This is the value of a share when it was first issued by the company. The total nominal value of all shares represents the total nominal value of equity on the balance sheet of the company. The nominal value of a share is not the same as the market value.Poolfactor In finance, a Pool Factor is a number expressed as a factor of one that is used to indicate the remaining principal balance of a note. Pool factors are only used to describe specific classes of securities, namely pooled Asset Back Securities and Mortgaged Backed Securities whose component payments are returned to investors on a monthly basis. Pool factors are published monthly for Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities.
- 16. A form of debt security issued by a Company or Government that earns interest for the investor. Bonds normally have a fixed life and are repaid at maturity after a set number of years. Also referred to as Loan Stock.
- 18. To calculate the pool factor:Outstanding Principal Balance / Original Princial Balance = Pool FactorFor example, a pool factor of 0.523 indicates that for each note of $10,000, $4,770 of principal has been repaid.