Find explanations and definitions of a large number of financial terms and expressions
ACT Share (Action)
ADR American Depositary Receipt.
ADS American Depositary Share.
American depositary receipt Receipts evidencing the shares of a foreign company on deposit or under the control of a US banking institution.
American depositary share Share of a non-US company which is represented by an ADS.
ATR Securisation share (Action de titrisation)
Average floating interest rates Mean of floating rates in a specific currency over two weeks.
See: stock exchange indicator
Average yield rate Mean of yield rates to maturity of a group of bonds classified by listing currency and term
Basket of securities Group of securities
BdL Market: code EU Il s'agit d'un marché réglementé au sens de la Directive 2004/39/CE et figurant sur la liste des marchés réglementés de la Commission Européenne
BDR Bearer Depostiary Receipt
Bonds A bond is a tradable debenture certificate which represents a fraction of a loan issued by a company, a public body or a government. As his income is contract-based, the bondholder does not support the business risk of the issuing entity. However, he has no corporate right and he is not entitled to receive a dividend and to take part in the issuing entity's management. Remuneration takes the form of an interest (coupon) paid at predetermined maturities.
- Fixed-rate bond (straight bond): a bond which bears a fixed interest.
- Floating-rate note: a bond which bears a variable interest set for given periods of time.
- RMB bond: a bond which is traded in Renminbi(RMB)on the LuxSE
- Zero-coupon bond: no coupon stripping – the bond bears no interest.
Bond with warrant attached This particular type of bonds has a security, ie a warrant, attached to the bond. The security entitles to subscribe to a specified security by paying the defined subscription price. The holder may strip the warrant from the bond and to trade it on its own.
See: bond, ex-warrant bond, warrant
Call option Buying option. The right but not the obligation to buy stock or shares at an agreed price up to a date in the future.
See: Warrant, Put
Capital underlying Underlying to which the capital is linked.
Capitalization (type of income)
See: type of share/unit of UCI
CDR Continental Depositary Receipt
See: depositary receipt, securities, real estate certificate
CI Real estate certificate (Certificat Immobilier)
CNF Convertible Floating rate note (Emprunt convertible à taux flottant )
CNS Straight convertible bond (Emprunt convertible à taux fixe)
CNZ Zero-coupon convertible bond (Emprunt convertible à coupon zéro)
Common Code 9-digit identifier of a security , used for listing purposes. The code is common to Euroclear and Clearstream.
See: securites, ISIN code
Corporate event An event which affects the life of an issue or the issuer (e.g. stock split, increase in capital…)
See: stock event, securities
CPZ Zero-coupon (Coupon zéro)
CWF Floating rate warrant (Emprunt avec warrant à taux flottant)
CWS Fixed rate warrant (Emprunt avec warrant à taux fixe)
CWZ Zero-coupon warrant (Emprunt avec warrant à coupon zéro)
Demande de l'agent introducteur Request from listing agent.
Demande de l'émetteur Request from issuer.
Depositary receipt Marketed internationally to sophisticated investors, they are negociable certificates that give evidence of ownership of a company's shares. They are a good medium for international investors because they may be more liquid and are more easily traded than the shares they represent. There are several types of depositary receipts:
- Bearer depositary receipt (BDR)
- Continental depositary receipt (CDR)
- European depositary receipt (EDR)
- Fiduciary depositary receipt (FDR)
- Global depositary receipt (GDR)
- International depositary receipt (IDR)
See: share, equity, GDR, ADR
Depositary share Shares represented by a depositary receipt.
Types of depositary shares :
- American depositary share (ADS)
- Global depositary share (GDS)
- European depositary share (EDS)
Distribution (type of income)
See: type of share/unit of UCI
Dividend Part of the company's profits after tax distributed to shareholders.
See: equity, type of share/unit of UCI
DRT Droit de souscription (Subscription rights)
DS Depositary Share
EDR European Depositary Receipt
EDS European Depositary Share
Eurobond A loan issued in a currency other than that of the country or the market in which it is used. Interest is paid without the deduction of tax.
Euro MTF: code LU This market is MTF (Multilateral Trading Facility) as defined in Directive 2004/39/EC and regulated by the provisions of the Rules & Regulations of the LuxSE.
Ex-warrant bond Remaining bond after the warrant has been stripped from a bond with a warrant attached.
See: bond with warrant attached, warrant
FCP Mutual fund (Fonds commun de placement)
FDR Fiduciary Depositary Receipt
Fixing Formation of prices for a specific group of securities, by comparing and matching the order books at a given time.
Floating Rate Notes (FRN) A bond which bears a variable interest set for given periods of time.
Fonds Commun de Placement (FCP)
See: mutual fund, UCI
FRN Floating Rate Note
Global Depositary Receipt (GDR) A financial instrument usually denominated in US Dollars, representing underlying shares of a foreign company.
The underlying shares are issued to a depositary bank in whose name they are registered and deposited with custodian bank in the foreign company’s country.
The depositary bank then issues receipts representing the underlying shares. These receipts are then traded on international exchanges as any other registered security.
See: Depositary receipt, ADR
Global Depositary Share (GDS)
IDR International Depositary Receipt
Index Index based on the prices of a given group of equities.
The indices of the Luxembourg Stock Exchange are based on the prices of Luxembourg shares. The weight of a share in an index is a function of the product (prices in Euro of the share x number of related shares), compared to the one of the other index constituents.
See: equity index, price, shares
Indicative price A price indication without a trade having been made.
See: price, no-trade price
Institutional investors These investors are legal persons and entities which heavily invest their resources in the share capital of companies, on their own behalf or on behalf of third parties.
ISIN code International Securities Identification Number.
See: securities, common code
Listed company A company whose shares have been admitted to the Luxembourg Stock Exchange offial list. It has had to comply with the Exchange's listing regulations.
Listing The listed securities can be traded on the MFX market segment. They can be temporarily suspended.
See: MFX, withdrawl
BdL Market: code EU
This is a regulated market as defined in Directive 2004/39/EC and specified in the European Commission list of regulated markets.
Euro MTF: code LU
This market is regulated by the provisions of the Rules and Regulations of the Luxembourg Stock Exchange.
See: type of markets
See: price marker
Matching price Traded price at which the volumes traded between a buyer and a seller match fully.
See:price, traded price
MTN Medium Term Note
MTNF Floating rate MTN
MTNS Fixed rate MTN
MTNZ Zero-coupon MTN
Multi Fixing System (MFX) Market based on a sequence of fixings held at defined times over a trading session. Each individual fixing applies to a group of securities.
Mutual fund / Fond Commun de placement (FCP) OPC usually managed according to risk spreading principles. The fund is not a legal entity and is managed under a fiduciary agreement. The investor has no ownership right on the fund's assets but has a right to participate in the assets and to benefit of capital gains from fund appreciation.
Official price Any traded price is an offical price. The last no-trade price is deemed to be an offical price unless there has been a trade on that day.
See: price, traded pric , no-trade price
Official price list Daily and monthly price list containing offical prices and corporate actions/stock events of all securities listed at the Luxembourg Stock Exchange.
Olux Luxembourg linear government bonds
See: Average yield rate
OPC Action ou part d'OPC (Share or unit of UCI)
Option The buyer of an option acquires the right but not the obligation to purchase (call option) or sell (put option) a specified quantity of securities for a given period of time and at a predetermined price. To acquire this right he pays a premium to the seller of the option (option price).
See: Warrant, Call, Put
Order / Order book List of buy and sell orders (volumes and limits) recorded on the UTP System.
Other instruments Securities which are not shares, bonds, type of share/unit of UCI, warrants, bonuses or rights.
Preferred shares Preferred stocks combine characteristics of common stocks and bonds. Preferred shares do not normally vote. In general, a preferred has a fixed dividend (as a bond pays interest), a redemption price (as a bond), and perhaps a redemption date (like a bond). One difference from bonds is that in liquidation (e.g. following bankruptcy), bond holder claims have priority over preferred shares, which in turn have priority over common shares (in that sense, the preferred shares are "preferred"). These shares are also preferred with respect to payment of dividends.
Price Price expressed either in amounts or percent at which a security is traded (traded price) or at which a security might trade (no -trade price).
Price maker A marker which identifies orders which generate a price.
t traded price
d reported trade
i indicative price
See: price, order book
Primary market The function of a stock exchange in bringing securities to the market for the first time. Mraised by selling securities to the investor is used to enhance the development of the company.
Programme Series of bonds and warrants governed by similar terms and conditions of issue. The bonds and warrants are the tranches of the programme.
See: bond, warrant
Prospectus Document giving the details that a company is required to make public when it issues a bond or a share. It contains the terms and conditions applied to the issue concerned.
PUB: Publications Prospectus published inLuxembourg without the listing of securities on one of the Stock Exchange markets.
Put Selling option. The right but not the obligation to sell stock at an agreed price and/or within a stated future time.
See : Warrant, Call
Rachat total Full redemption.
Real estate certificate Real estate certificates are bearer securities which entitle to receive part of lease income of a building, or when the building concerned is disposed of, part of the sale proceeds. Legally speaking, the certificate holders have no right of ownership in respect of the building but are creditors of the issuing company.
Redemption price Price at which the securities are redeemed at maturity.
Reduced ask price A traded price at which sellers' oreders are partly filled.
See: price, traded price
Remboursement anticipé total Full early redemption
Reported trade Trade reported to the stock exchange and which does not originate from the order books.
Secundary market Marketplace for trading in securities that are not new issues.
Securites General name for stocks and shares of all types. In common usage stocks are fixed interest securities and shares the rest, though strictly speaking, the distinction is that stocks are denominated in money terms.
Shares Certificate representing ownership in a company. The shareholder is granted a number of rights in relation to the company's life (voting rights, right to access information) and the company's assets (right to receive part of the profit, subscription right).
SICAF / SICF (Fixed-capital investment company) The fund operates as a separate entity in the form of a "société anonyme". Units are issued in the form of shares. (Société d'investissement à capital fixe)
SICAR / SICR Investment company in risk capital (Société d'investissement à capital risque)
SICAV / SICV (Variable-capital investment company) Open-end fund incorporated as a "société anonyme" and issues shares. (Société d'investissement à capital variable)
See: Corporate event
Stock exchange A public organized market where securities are traded.
Stock exchange indicator Stocks
STR Fixed rate bond
Sub-fund of UCI Sub-entity of an undertaking for collective investment. The sub-funds of UCIs are, in turn, split into types of shares/units.
See : UCI, type of share/unit of UCI.
Trade / Traded price Price at which a trade is done. This can be a matching price, a reduced bid price or a reduced ask price.
See: price, price marker
See: Trading value, turnover, volume
MFX: MultiFixing Market on the BdL Market (code EU)
MFL: MultiFixing Market on Euro MTF (code LU).
See: Traded volume, turnover
See: Traded price
Types of markets
MFX: MultiFixing Market on the BdL Market (code EU)
MFL: MultiFixing Market on Euro MTF (code LU)
Type of share/unit of UCI Security which is a share or a unit of UCI, depending on whether the entity is a SICAV, SICAF or FCP.
The income may be a dividend (distribution) or capitalization-based (reinvested proceeds).
See : security, UCI, sub-fund, NAV
Type of income Capitalization or income.
See: type of share/unit of UCI
UCI(TS) An Undertakings for Collective Investment (in Transferable Secruties) manages a portfolio of securities on behalf of unitholders.
UCIs may be set up as FCPs, SICAVs, SICAFs, ...
UCIs may have seperate types of shares/units or sub-funds which, in turn, can have seperate types of shares/units.
See: securities, FCP, SICAV, SICAF
Volume Traded volume, ie the number of traded securities or, if trading is in percent, the nomial amount traded.
See: traded price, trading value
WACT Stock warrant (Warrant à souscription d'actions)
Warrant A warrant is a tradable right which entitles the holder to aquire or sell a defined number of shares at a predetermined price until a day indicated in the terms and conditions of the contract.
See : security, Option, Obligation cum warrant, programme
Withdrawal The securities withdrawn from listing are no longer traded in the market of the Stock Exchange. Announcements of securities to be withdrawn are made with 3 days’ prior notice (8 days’ prior notice in respect of fully redeemed securities).
WOBL Bond warrant ( Warrant à souscription d'obligations)
WOPT Zero-coupon bond (Warrant à option autre)
Yield The return earned on an investment taking into account the annual income and its present capital value. There are a number of different types of yield, and some cases different methods of calculating each type.
Zero Coupon Note / ZCN A zero-coupon note generates no periodic interest payments and is isuued at a discount from face value. All return is realized at maturity.