• Certificate of immobilisation
Document provided by the financial intermediary conferring the capacity of shareholder on a holder of bearer shares. This document allows attendance and voting at a General Meeting.
• Consensus
Average of forecasts (of profits, PER, dividend) made by a sample selection of financial analysts on a sector of activity, a company, an index or a currency at a given time.
The consensus gives a good representation of what the financial market thinks at a given time of a company and its potential.
• Corporate result and consolidated result
The corporate result is the result of the parent company of a group: it is from this result that General Meeting decides to grant a dividend.
The consolidated result is the result generated by all the companies in the group. It is this result which reflects the economic reality of a group.
• Coupon
The detachable part of a share, when it is in the form of a paper security, corresponding to the dividend. Today the detachment of the coupon signifies payment of the dividend.
• Dilution
Reduction of the profit per share when new shares are created.
• Distribution rate
Ratio between the amount of dividends distributed and the amount of net profit. Also called “pay-out ratio” in English.
• Dividend
The portion of the results distributed to shareholders, the remainder increasing equity funding and ensuring the development of the company.
• DSS (deferred settlement service)
Introduced on 25 September 2001, the DSS enables the settlement of a transaction to be deferred. The settlement of purchases and sales takes place on the fifth stock market day preceding the last day of the calendar month. The advance of funds or securities is invoiced by the bank to the giver of the order. The Dexia share is eligible to DSS.
• Equity warrant
Right to subscribe to a share, at a fixed price and on a specific date.
• Financial markets authority
Resulting from the merger of the two market regulators: the Commission for Stock Market Operations and the Financial Markets Council (see Law on the Financial Sector).
Its tasks: granting approval for the provision of investment services, supervision of all the markets, good investor information, admissibility of public bids.
• Float
Fraction of the capital of a company placed on the market, the shareholdership of which is neither stable nor determined.
Not regarded as part of the float are shares held by majority family shareholders within the context of a shareholder pact, or by the State.
The greater the float, the higher is the liquidity of the security.
As from 1 December 2003, it is the floating portion of the capital and not the total stock market capitalisation which is taken into account for the classification of stocks in the CAC 40.
• Gross self-financing margin (GSFM)
Net profit, increased by depreciation allowances and provisions: it is the capacity of the company to invest without calling for external resources (shareholder contributions or debt).
• Liquidity of a security
Ratio between the volume of shares exchanged in one day and the number of shares constituting the capital.
• Minority interests
The book value of the holding of minority third party shareholders in a consolidated subsidiary.
• Operating coefficient
Ratio between operating expenditure and operating income.
• Order at a limited price
This order may not be executed above a given price if it is an order to purchase, or below a given price if it is an order to sell.
• Order at any price
This is the more classic order, which will be executed in full, whatever the price, on the first quotation following its acceptance by the trading system.
• Order at market price
This order allows for the best price available on the market at any time to be obtained. Passed before opening, it becomes an order limited to the opening price.
Passed during the session, it will be considered as an order limited to the best price available on the market at that time. This order bears no indication as to the price at the time of its transmission.
• PER (price earnings ratio)
Ratio between the price of a share and the net profit per share. It allows a view of how many times the price of a share capitalises the profit per share. The PER of a share is higher if strong profits growth is anticipated.
• Price guarantee
A company acquiring the majority of the capital (controlling block) of another quoted company must offer its minority shareholders, during a period of 10 stock market sessions, the opportunity to leave the company (to sell their shares) under the same conditions as those granted to the transferors of the controlling block.
• Primary market
Market on which shares are issued.
• Profit per share
Net consolidated profit divided by the number of shares constituting the capital.
• Quorum
The proportion of the share capital entitled to vote which must be present or represented at a General Meeting for it to be able to pass resolutions validly.
For a General Meeting of Dexia, no quorum is required. For an Extraordinary General Meeting, a quorum of 50% is required on first convocation and no quorum is required on second convocation.
• ROE (return on own equity)
This measures the ratio between the net consolidated profit (excluding non-recurrent items) and the average consolidated own equity after distribution.
• Secondary market
Market where stock market securities are traded and exchanged.
• Share repurchase
Dexia sometimes repurchases its own shares on the market. These transactions in general have a relutive effect on the share.
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Share yield
An indicator of the profitability of a share expressed as a percentage. Ratio between the gross dividend per share and the price of the share at 31 December.
• Stock market capitalisation
Stock market value of a company at a time T (price of the share multiplied by the number of shares constituting the capital of a company).
• Subscription right
Negotiable right attached to old shares, allowing subscription to new shares when there is an increase of capital.
With N “rights”, the possibility of acquiring a new share at a price fixed in the terms of issue.
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