Financial glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

AGM Annual general meeting where directors inform shareholders of company performance and future prospects. Shareholders vote on board elections and significant company issues.
Ancillary Revenue Supplementary revenue beyond ticket sales. 
Aquisition and leveraged finance Financing of company transactions that lead to a change in ownership structure, whereby equity and borrowed capital are used.
Associated company A company that is not under uniform management or majority - owned by a controlling company, but on which nevertheless the controlling company exercises considerable influence (shareholding greater than 20 per cent)
At-Equity-Bewertung Valuation of investments in associated companies, whereby their share of equity and capital share of profit for the year are taken into consideration.

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B

Bond A tradeable debt security to raise money. Holders of the bond have lent money for which they receive a fixed rate of interest over a set period of time.

C

Call option An option contract which gives the holder the right, but not the obligation, to buy the underlying asset at the exercise price at or before a fixed expiry date.
Cap Contractual agreement where for the payment of a premium a buyer acquires a guaranteed interest rate ceiling for an agreed period. If the market interest rate rises above this ceiling at the individual times when the rate of interest for the next interest period is determined, the cap seller must compensate the amount of the difference.
Cash flow Business ratio for the earning and financial power of a company within the framework of an analysis of the company. It gives an indication of the degree to which a company has liquid assets arising from its business turnover within an accounting period.
Consolidation Addition of partial accounts to a total account - for example of individual balance sheets of a group´s companies.
Consolidated group All group companies included in the consolidated financial statement.
Convertible bond

A debt issue that may be converted into a number of shares or other securities.

Corporate Governance Code of behavior that defines guidelines for the transparent management and control of companies. It creates transparency, strengthens confidence in the company management and in particular serves the protection of the shareholders.

D

Depreciation and Amortisation Investments are written off over their full useful life, so that the purchase price is spread over several years as expenses.
Derivative Derived financial instruments whose valuation depends on the base value in each case - for example share, interest rate, foreign exchange or goods. Futures and options are important forms of derivative financial instruments.
Designated Sponsor A "Designated Sponsor in Xetra" means a broker/dealer that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security.
DVFA/SG Result Standardised output quantity developed by Deutsche Vereinigung für Finanzanalyse und Anlagenberatung /DVFA) and the Schmalenbach-Gesellschaft (SG).

E

EBIT Result from operating activities, Earnings Before Interest and Taxes.
EBITDA Earnings Before Interest, Taxes, Depreciation, Amortisation
EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortisation and Rent
Equity in financial market terms, equity is a synonym for shares and represents part-ownership of a company.
Equity ratio Business ratio of the capital structure analysis that quantifies the share of equity capital as a proportion of total capital. Calculation formula: shareholders´equity divided by balance sheet total.
Equity return Ratio of earnings after tax and employed equity.

F

Free Float Proportion of shares of a public limited company held by many shareholders in small parcels.

 

G

Goodwill Difference between the purchase price of a company and its net worth (assets less liabilities).

H

Hedging Safeguarding the share price: by sale or purchase of derivatives, security positions can be safeguarded (hedged) against share market trends.

I

IFRS/IAS International Financial Reporting Standards, that allow comparability of consolidated financial statements worldwide.
Institutional investors Institutional investors are e.g. insurance companies, funds or banks
Investment intensity Business ratio for analysis of asset structure that describes the ratio of fixed assets as a proportion of total assets.
Investor relations Investor Relations describes the communication between listed entities and the financial markets.
ISIN International Securities Identification Number 

J

Joint-Venture Business cooperation between companies, usually limited in terms of time and function. Projects within the framework of a joint venture are carried out jointly by the participating partner companies.

M

Market capitalisation Result of multiplication of number of shares outstanding and share price.

P

Prime Standard

Prime Standard is a EU-regulated stock exchange segment. In addition to the requirements of General Standard, which represents the statutory minimum requirements of the Regulated Market, Prime Standard companies must comply with high international transparency standards.

Put option Right to sell a certain specified asset at a certain price within a specified period of time or moment.

R

Registered share A registered share is a stock that is registered on the name of the exact owner.

S

SDAX®

Index comprising 50 companies from classic sectors in the Prime Standard segment that rank directly below the MDAX® shares in terms of size.

Stock exchange An organized marketplace for securities for the transaction of orders by member brokers for  investors.

X

Xetra

Deutsche Börse´s fully electronic pan-European trading platform for equities, certificates, warrants, exchange-traded funds and subscription rights.