Corporate report that can influence the share price. According to § 15 of the Securities Trading Law (Wertpapierhandelsgesetz, WpHG), stock corporations are obliged to publish ad-hoc reports on such occasions.
Analyst
A professional assessor of the investment quality, value, and price development of financial and capital investments.
Analyst rating
Assessment of securities by analysts - usually from large banks - leading to recommendations for or against purchasing. The best-known ratings are: strong buy; buy; hold; sell; strong sell. Other terms include accumulate, under-performer, out-performer, and market-performer.
Ask (asked price)
Price at which a financial instrument is offered for sale.
Associates
Legally independent companies in accordance with § 15 of the German Stock Corporation Act that are connected to different degrees of intensity. This includes simple majority holdings, independent and controlling companies, corporate groups, cross-shareholding companies, associated companies, and integrated companies.
Bearer share
Type of share which only changes ownership by means of transfer posting at the banks and the clearing house.
Bear market
Name for a negative development in stock markets that is expressed in a similarly negative price development. It can extend to all markets or just submarkets.
Blocking minority
If one individual or a group of stockholders holds a share of more than 25 per cent but less than 50 per cent of the stock of a company, then this person or group can prevent General Meeting decisions that require a 75 per cent majority.
Blue chip
Stock market name for internationally known standard shares of top quality that, due to their earnings and substance, are considered to be particularly safe (conservative) investments. They take their name from the blue chips (the most valuable ones) in American poker.
Bond
Long-term loan against debenture bonds. In the bond issue terms, the bond issuer agrees on specific payments, usually to pay back cash loaned as well as to pay interest due on specific dates.
Book-building margin
Price range of a share defined on the occasion of a company going public. Interested parties can submit their subscription offers within this pre-defined range.
Bull market
Name for a positive development in stock markets that is expressed in a similarly positive price development. It can extend to all markets or just submarkets.
Common stock
The most common type of share in Germany. Common stock guarantees owners the rights listed in the German Stock Corporation Act, such as the right to vote.
Convertible bond
Bond of a stock corporation that gives the holder the right, but not the obligation, to exchange it at a later date or within a future period of time for shares in the company, based on a specific ratio, possibly against additional payment.
Cash flow
Key company figure which represents the surplus funds: Net income plus depreciation plus change in long-term provisions.
Cash flow statement
Instrument used in the context of financial analysis to investigate the causes of changes in the company's cash holding. This is done by entering all liquid funds as well as the flows of incoming and outgoing payments.
Charts
Graphical representation of long number series for listed values (securities, foreign exchange, goods) and indices (index performance of a value, an industry, or an overall market).
Current price
The price on the day on which a security is purchased or sold.
Day order
Limited stock market order whose validity period is fixed to a certain day.
Demand price
Name of the price at which demand exists.
Depositories
Institutions at which the stockholders have deposited their shares for the purpose of participating in the General Meeting. The shares must be deposited as required before the holders can exercise their voting rights.
Directors' dealings
Securities transactions by members of the Managing Board and Supervisory Board of a company listed on the stock exchange; according to the guidelines for the Neuer Markt, such transactions have had to be disclosed since July 1, 2002.
Discount
Price markdown on the nominal value of a bond or a loan amount.
Dividend
Distribution of a stock corporation's profits. These are usually distributed per investment fund share (=share).
DVFA income
Scheme designed by the German Association for Financial Analysis and Asset Management (Deutsche Vereinigung für Finanzanalyse und Asset Management, DVFA) for calculating a company's annual net income in order to allow comparison of different years or different companies.
Earnings per share
Key figure for valuing and assessing shares which allows a judgement to be made concerning a company's profitability; calculated as annual net income divided by number of shares.
EBIT
Earnings Before Interest and Taxes: This can be found in the statement of income and may also be referred to as "Income from operations".
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA is used internationally and is one of the most transparent indicators of success for assessing the strictly operative profitability of a company. It is made up - by back calculation - of the EBIT, the net interest income and depreciation.
Economic value added (EVA)
Variable that demonstrates to what extent a decision will create or destroy assets for the company.
Equity
Funds with which a stock corporation is liable to its creditors.
Equity story
A corporate concept published by a company when going public or when increasing capital. Moreover, it constitutes one of the essential determinants for issue price determination.
EURIBOR (European Interbank Offered Rate)
Interbank money rate for 1 week and 1 to 12 one-month loans. As of January 1, 1999, the national reference interest rates in euro countries - such as FIBOR (Frankfurt Interbank Offered Rate) - have been replaced by the EURIBOR interest family. The EURIBOR rates form the respective reference values for most variable bonds as well as the negotiated variable credit agreements in the EU.
Executive Board
One of the three bodies of a stock corporation, alongside the General Meeting and the Supervisory Board. The Executive Board represents the stock corporation externally and manages business internally. It therefore has sole representative power and management authorization. The Executive Board is made up of one or more individuals who are appointed by the Supervisory Board and are responsible for managing the company.
Floor trading system
Securities trading between brokers and traders in person which takes place "on the floor" of the stock market building.
Forward transactions
Contracts concerning purchase or sale, for example of securities, where the time at which the contract is concluded differs from the time when the security transaction is performed.
Free float
The portion of the shares of a listed company which is traded freely on the stock market.
Fund
Investor assets that are managed by capital investment companies or investment companies. These companies invest the investors' capital in shares, pensions, or real estate.
Future
Forward contract in which the buyer and seller commit themselves to deliver or accept a specific quantity of a base value at a fixed price upon the due date.
General meeting
Body of a stock corporation. In the general meeting, the shareholders, unless laws stipulate otherwise, exercise their rights in the affairs of the stock corporation. The general meeting makes decisions in the cases that are expressly determined in the law and Articles of Association in accordance with § 118 of the German Stock Corporation Act. This includes the appointment of members of the Supervisory Board, giving discharge to the Supervisory Board and Executive Board, appointment of the accountant, appropriation of net retained profits, amendments to the Articles of Association, as wells as measures for capital procurement and decreasing capitalization.
General standard
Alongside the prime standard, this is one of the two stock market segments introduced with the stock exchange rules changed on January 1, 2003 and the resulting restructuring. The minimum national legal requirements apply in the general standard. The rules are binding for all issuers on the Frankfurt Stock Exchange.
Greenshoe
Option allowing a consortium bank to release additional securities of the company for which it is responsible onto the market as part of a new issue. This option is primarily used when demand for the issued shares clearly exceeds the planned issue volume.
Hedging
To hedge = to limit. Market participants conclude an option or forward transaction to minimize their rate, currency, and price risks.
IFRS
The International Financial Reporting Standards (IFRS) are a collection of standards and interpretations that are not legally binding, developed by an independent private committee, the International Accounting Standards Board (IASB). They aim to harmonize accounting practices in various countries in order to improve transparency and facilitate comparison. These standards and interpretations list rules on external company accounting. The International Financial Reporting Standards comprise the International Financial Reporting Standards (IFRS), the International Accounting Standards (IAS), the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), and the interpretations of the Standing Interpretations Committee (SIC).
Index fund
Investment fund that is structured in such a way that it corresponds to a generally recognized stock market index.
Individual share certificate
Share that is based on part of the capital of a stock corporation. For genuine individual share certificates, the number is laid down in the Articles of Association. Non-genuine individual share certificates (no-par-value stocks) are issued on a particular fraction of the capital and exist as no-par-value stocks with or without the quota stated on the stock.
Issue rate
Price at which a newly issued security is offered to potential capital investors for drawing.
Key interest rates
Common name for the discount rate and Lombard rate set by the Bundesbank.
Limit
Price limit for purchase orders and sales orders.
Market capitalization
Current market value of a company listed on the stock exchange: Share price multiplied by number of shares.
Nominal value
The part of a share that represents the company's registered capital; for fixed-interest securities, this is the amount that the issuer (distributor of the bond) must pay back to the holder at the end of the maturity period.
Ninety-day line
A moving average line that is important for technical share analysis. It is formed from the average prices on the last ninety stock market days. If the current price rises from below this line to above it, this is valuated as a signal to buy. In contrast, it is valuated as a signal to sell if the price falls from above the line to below it.
NYSE
Abbreviation for New York Stock Exchange (Wall Street). The most important stock market in the world. Formed in 1792. Floor trading system with market segments for cash transactions and forward transactions.
Option
Purchase or sale of the right to accept an offer to buy or sell within a fixed period of time.
Offer price
Name of the price at which an offer exists.
Order
Another term for purchase orders or sales orders on a stock exchange.
Penny stocks
Highly speculative American shares with prices between fractions of a cent and a few dollars.
Premium
Price markup on the nominal value of a security or the parity rate of foreign exchange: nominal value or parity + premium = price.
Price-earnings ratio (PER)
Current market price divided by earnings per share. The PER allows statements to be made regarding the way in which various shares from a particular industry are valued on the stock market.
Prime standard
Alongside the general standard, this is one of the two stock market segments introduced with the stock exchange rules changed on January 1, 2003 and the resulting restructuring. In the prime standard, the issuers must meet international transparency requirements that go beyond those of the general standard. These include quarterly reports, international accounting standards (IAS or US GAAP), presentation of a company calendar, at least one analysts' conference each year, as well as ad-hoc disclosures and regular reporting also in English.
Profit warning
Declaration of a company listed on the stock market that the profit originally expected will not be achieved; must be published in the form of an ad-hoc report.
Rate cash flow ratio
Share price divided by cash flow per share. Key figure that demonstrates the relationship between the share price and the underlying performance-based potential.
Rating
Opinion, expressed in symbols, of agencies specializing in creditworthiness analyses with regard to the economic ability and legal commitment of an issuer to meet all due payment obligations and/or due payment obligations associated with a specific financial title completely and on time.
Real-time prices
Quotations which the stock exchange displays on price screens or other terminals without delay.
Registered share
Share registered in the name of the owner.
Return on investment (ROI)
Key commercial key figure (financial profitability). The ratio between profit and total assets.
Securities and Exchange Commission (SEC)
Securities and stock exchange supervisory authority in the USA that monitors the entire international market.
Security identification number (SID)
Six-digit number which is used to uniquely identify all traded shares and other securities.
Share
Shares (also referred to as stock) break down the share capital of a stock corporation into smaller parts and at the same time evidence ownership of holders' rights in the stock corporation. According to §8 paragraph1 of the German Stock Corporation Act, the shares can be either par-value shares or individual share certificates.
Share buy-back
Under certain circumstances, stock corporations may buy back their own shares. Shares may be bought back for various purposes. One of the most important reasons is to increase the share price of the shares remaining on the free market.
Shareholder value concept
Concept representing the sole orientation of management towards the interest of shareholders, with the aim of maximizing market value.
Share index
Key figure that, usually every day of trading on the stock market, reflects changes in share prices (several or all) over the course of time based on a randomly set base value. Share indexes can comprise the entire market (overall index) or just individual industries (industry index).
Small caps
Shares of small stock corporations traded on the stock market. The name is an abbreviation of small capitalized.
Split share
Arises when shares are increased by exchanging the old shares for a larger number of new shares (split shares) whose nominal values or unit values are reduced accordingly.
Stagflation
Stagnation of economic growth coinciding with inflation.
Stakeholder value
Concept of company management that is considered to be the opposite of shareholder value. This entails the company management considering the interests of all entitlement groups connected to the company - such as management, employees, buyers, vendors, creditors, and the state - when making decisions.
Stock option
The right, acquired by paying a premium, to buy (call) or sell (put) a specific number of shares at a specific pre-defined price within a specific period or on a specific date in the future.
Stock option plan
Model that allows for a company's managers to be given stock options in the company without remuneration or subject to preferred conditions.
Stock split
Division of a share into two or more parts. The main purpose of such a measure is to reduce the price of the individual share and make it easier to handle.
Stock voting right
Voting right of the stockholders. The most important management right enjoyed by individual stockholders that can be executed based on membership and autonomously. In general, every share grants a voting right that is exercised based on principle share values or, in the case of individual share certificates, based on the number thereof.
Supervisory Board
Body of a stock corporation. The Supervisory Board monitors the management of the stock corporation, appoints members of the Executive Board, calls a General Meeting in special circumstances, and represents the company legally against the Executive Board.
Treasury stock
Shares issued by a stock corporation that it holds itself. According to §71 paragraph 1 of the German Stock Corporation Act, the company may only purchase treasury stock under certain conditions listed there.
US GAAP
United States Generally Accepted Accounting Principles: American accounting standards which are not legally binding in the USA but are officially recognized and valid.
Venture capital
Name for equity that is made available by means of a specialized company (venture capital fund) to young companies that cannot finance their growth from their own funds and receive no or insufficient credit from banks due to a lack of collateral.
Volatility
Measure of the degree of fluctuation and thus the price risk of a security over a particular period. The term is often also used generally for market price and interest rate fluctuations.
Working capital
Key figures for assessing the liquidity of a company. Defined as surplus of the short-tem assets (can be converted into cash within a year) over the short-term liabilities of a company.
Fully electronic international trading platform of Deutsche Börse AG. Market participants with global operations (institutional investors and private investors) can trade any amount of any of the stocks, bonds, and warrants listed on the Frankfurt stock exchange using XETRA.