A Call Option is a standardized tradable contract that gives the owner the right to buy a particular underlying asset at a specified date in the future at a pre-determined price. See also Option, Put Option and Option Premium.
A settlement method used in certain future and option contracts where, upon expiration or exercise, the buyer does not receive the underlying commodity but the associated cash position. For buyers not wishing to take actual possession of the underlying physical commodity, cash settlement is sometimes a more convenient method of transacting business.
|Central Counterparty (CCP)||
An entity that interposes itself between the counterparties to trades, acting as the buyer to every seller and the seller to every buyer.
Certificates track the performance of an underlying asset, often with a leverage effect (those without leverage being defined “investment certificates”). They provide the investor the opportunity to spread risk with moderate capital and administration costs, thus making possible the investment in foreign or largely diversified assets.
The process of matching, registering and guaranteeing transactions.
The price of a share or security at the end of a day's stock market trading.
The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
|Common Stock (Share)||
Securities that represent part ownership in a company and generally carry voting privileges. Common shareholders may be paid dividends, but only after preferred shareholders are paid. Common shareholders are last in line after creditors, debt holders and preferred shareholders to claim any of a company's assets in the event of liquidation. See also Preferred Stock.
A convertible bond confers a temporary right to exchange the bond for a predefined number of equity securities, e.g. shares. A holder who exercises the conversion right is no longer a creditor (i.e. provider of debt capital) but instead becomes a shareholder (i.e. provider of equity capital). If the conversion right is not exercised, the convertible bond behaves just like a normal bond. Due to the possibility to convert the bond into equity rights (which represents added value for investors), the interest rate on convertible bonds is mostly somewhat lower than on normal bonds.
This is a regular payment received by the bondholder over the lifetime of the bond. The coupon rate is expressed as a percentage of the face value of the bond.
Covered warrants incorporate an option to buy or sell other financial instruments; according to their features, may be distinguished between plain vanilla (underlying represented by a single product) and structured/exotic (more complex products whose underlying is represented by a basket of products, and/or incorporating combinations of call and/or put and/or exotic options). The underlying assets can be represented by equities, bonds, indices, currencies and commodities. In most cases covered warrants lead to a cash settlement, without the physical delivery of the underlying financial instruments.
The transaction was effected as an agency cross or a riskless principle trade between two member firms at the same price and on the same terms.
Cum means 'with'. Shares quoted cum dividend entitle the buyer to the current dividend. The price of the shares will usually reflect the amount of the dividend. Similarly, shares 'cum rights' entitle the buyer to participate in the new issue of shares. See also Ex dividend.
A bank, financial institution or organisation which keeps the physical scrips or other assets on behalf of an individual or corporate clients. Also performs other financial duties such as settlement of transactions and handling corporate actions in relation to the custody of those scrips.