Agent a stockbroker who acts for his/her clients with no personal interest in a transaction bid bid to buy shares at a certain stated price. Stock brokers are bound to deal to the extent of at least 1000 shares if the bid is accepted
Bond a tradable interest bearing security that is usually issued with a fixed rate on interest (coupon) and redemption date.Capital markets the means by which large amounts of money (capital) are raised by companies, governments and other organizations, for long term use and the subsequent trading of instruments issued in recognition of such capital. Certificate a certificate issued by the issuer of a security stating either that a named person is the registered owner or that the bearer is the owner.
Closing price the last price of the day for a particular share and the next day’s opening price. This could be the bid, offer for sale.
Counterparty one of the parties to a transaction-either the buyer or the seller.
Dealer a licensed member of the stock exchange who buys and sells shares in the exchange on behalf of clients.
Directors the managers of a company appointed by the shareholders.
Dividend the periodic distribution of profits to shareholders of a company.
Dividend cover earnings per share dividend per share.
Dividend yield dividend per share current market price per share.
Earnings per share profit after tax and preference dividends
Share number of ordinary shares in issue
Equity shares shares in a company which are entitled to a balance of profits and assets after all prior charges
Index a figure calculated from the share prices of a specified number of shares on a stock exchange.
Intermediaries those organizations that help in the issuance and trading of shares
Investors economic agents in a surplus of funds who place their money at risk intending and expecting to make financial or capital gain.
Issuer’s organizations that issue securities in order to raise capital funds to invest for growth.
Limited liability a benefit of share ownership whereby the liability of a shareholder for the debts the company is limited to the capital subscribed.
Liquidation the formal process of closing down a company. The assets are sold, the liabilities and preference shares are repaid and any balance is paid to the ordinary shareholders.
Listed company a company which has been admitted to listing on a stock exchange and whose shares are quoted in and can be dealt on the stock exchange.
Market Capitalization the market capitalization of a company means the market price per share multiplied by the number of shares in issue. The market capitalization of a stock exchange is the sum of market capitalization of all the companies quoted in that exchange.
Offer price the price at which a dealer is prepared to sell shares on the market.
Order a commitment to buy or sell a specified quantity of shares at a set price subject to certain terms.
Placement an issue method by which new shares are sold to the clients of the share-house handling the issue.
Price/earnings ratio market price per share divided by the earnings per share
Primary market the initial issuance of shares when a company is first floated
Prospectus any document, notice, circular, advertisement or such invitation offering to the public, for subscription or purchase, any shares of a company. The prospectus is a formal document giving relevant details about a new issue of shares as specified in the Companies Act.
Public issue an issue of new shares to the public
Ruling price the price at which deals are concluded in any particular trading session.
Scrip the actual or physical share certificate(s) issued by a company to a shareholder stating that a named person is the registered owner.
Secondary market the subsequent trading of already issued shares in an exchange such as those acquired at the primary stage.
Settlement the process whereby cash and ownership of shares are exchanged following a concluded trade deal.
Share the unit of a share in a company the part owner of a company.
Shareholder the owner of share in a company the part owner of a company.
Sponsoring broker a member of an exchange nominated by a company seeking a listing in that exchange, which undertakes liaison between the company and the listing section of an exchange.
Stock Exchange an organization which provides facilities for issuers to issue shares to raise money and for those shares to be traded among investors.
Subscription the process of an investor paying for and taking up a new share issue.
Transparent a description of a market where investors have full and immediate knowledge of the details of trades taking place in that market and have equal access to market information.