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

• Above par : Registration or purchase of a share for more than the nominal value or at 100% thereof.
• "Accordion" Operation : This is a reduction in a company's share capital, with a later increase in capital.
• Afro : "Activo financiero con retención en origen" Financial asset with withholdings at source.
• Against Payment : Implies payment of a price.
• Amortisation : Gradual repayment of a debt.
• Application : A Stock Market operation consisting of a purchase or sale effected by a single stockbroker over a single security, over the same number of shares on a certain date and at the same exchange rate, on behalf of two or more clients.
• Appreciation : Increase in the listing price of a currency or a stock.
• APR : Acronym of Annual Percentage Rate
• Arbitration : Purchase or sale of negotiable stock to make a profit from the different exchange rate of a single stock on two different Stock Markets.
• Asset : A series of goods and rights, belonging to an individual or a company.
• Assets : Series of goods and rights held by a person.
• Associated Stockbroker : A traditional intermediary and consultant on Stock Market-related issues, who purchases stock. S/he is a kind of notary, who specialises in formalising contracts over stock and all kinds of commercial contracts.
• At par : Exchange rate or listing price equal to 100% of the nominal value of the share.
• Average price : The value representing the exact middle between the maximum and minimum prices attained by each stock during a session.
  
  
  B  
  
• Balance : Difference between the total credit and debit entries. It is in credit when the sum of credits is higher than that of debits, and in debt when the other way round.
• Bear Market : Downward market trend.
• Bear Position : Decrease in the listing value or price of stocks.
• Best Price : A Stock Market order with no indication of the rate at which to buy or sell, understood to be the best possible rate obtained.
• Blue Chips : Top-ranking securities or stocks on an upward listing trend.
• Bond : Stock issued by companies or bodies of various kinds to obtain credit on capital markets with a pledge to repay them within a certain length of time and at a rate of interest which is normally fixed beforehand.
• Bondholder : Person who owns the bonds.
• Bonds : Fixed income stock, due to mature within one to three years.
• Book value : Estimation of the value of a share, calculated according to the balance sheet of the issuer.
• Broker : an English term used to identify the financial intermediary.
• Brokerage fees : A commission paid to stockbrokers for their work.
• Bull market : Market on an upward trend.
• Bull trend : Upward trend of a variable.
• Buy : This means to buy on the Stock Market.
  
  C  
  
• Call : Purchase option over a stock or product.
• Capital : The financial resources a company or person has to make an investment or engage in any activity.
• Cash : The purchase and sale of stocks which requires simultaneous handover of the price and stock to which the contract refers.
• Cash-flow : Total of the ordinary net profit and amortisations over a tax year.
• Closing price : This is the final exchange rate of a security during a Stock Market session.
• CNMV : "Comisión Nacional del Mercado de Valores"[National Exchange and Securities Commission].
• Commission : Price paid to the person who is doing something on another's behalf.
• Complementary Dividend : This is a dividend given to the shareholder so that, together with the amount given on account, the sum of the dividend established by the General Shareholders' Meeting can be attained.
• Continuous Market : The trading system which connects the various markets operating on a 24-hour basis.
• Convertibility : This is a feature of bonds or debentures, which means that they can be replaced by shares in the same company.
• Convertible Bond : Grants the holder the right to convert the value thereof into shares on a set date, either in the same company which issued the bonds, or in another company in which the issuer owns a bundle of shares.
• Coupon : Part of a stock or security which allows the holder to collect interest or dividends.
• Cover : Allocation of funds to ensure a Stock Market operation.
• Credit Market : The investor is allowed to purchase stock without having the total amount of funds required for the purchase available, or to sell without owning the securities involved in the transaction.
• Custody Fees : Commission charged by those who keep stocks in their custody.
  
  D  
  
• Debt : Obligation a person has to pay or repay something, generally a sum of money, to another, as a result of this latter party having loaned it previously to the former.
• Deposits : Sums of money in cash or financial assets placed in custody by the clients of credit institutions to gain interest.
• Discount : Operation through which a bank, or other financial body or agent, purchases a bill of exchange or other commercial document from the issuer, from whom he receives interest for making an advance payment of the amount in question.
• Dividend on Account : Profit distributed on account of the final results which the company expects to return.
• Dividend : That part of the profits which are to be paid out to the shareholders for each share they own.
• Dow Jones : New York Stock Market Index
  
  E  
  
• EBIT : A microeconomic term equivalent to pre-tax and pre-interest profit.
• EBITDA : A microeconomic term equivalent to profit before interest, -tax, allocations and amortisations.
• Effective value : Value of a security on the market.
• Equity : A security whose profitability depends on several factors, fundamentally linked to the profits and expectations of the issuer.
• Equity Fund : Investment fund whose portfolio consists of shares and other securities representing risk capital shareholdings.
• Equity market : The market upon which equities, shares and shareholdings in investment funds are traded.
• Equity value (shares) : Those which include the status of partnership and the attainment of yield conditional to fringe benefits and distribution thereof.
• Euroshares Market : The top-ranking multinationals of industrialised countries place issues of new shares through banking groups, who offer them to their clients.
• Ex coupon : Does not entitle the holder to the mature coupon.
• Exchange rate : Price attained by a stock on the Stock Market.
• Exchange rate : This is the rate of equivalency between two currencies, measured by the number of units from one country required to purchase one monetary unit of another.
  
  F  
  
• FIAMM : Acronym of the "Fondo de Inversión en Activos del Mercado Monetario" [Money Market Asset Investment Fund.
• FIM : Acronym of the "Fondo de Inversión Mobiliaria" [Non-fixed Asset Investment Fund].
• Fixed income : Securities which produce non-variable interest rates.
• Fixed Income Market : This refers to fixed income stock, issued either by private or public bodies.
• Fixed-Income Fund : Investment fund in which the whole portfolio consists of debt-equity securities with fixed or variable interest rates.
• Fluctuation : Continual upward and downward trends on the markets.
• Free share : The shareholder is not required to pay any money for subscribing this kind of share, which is charged against free funds. This kind of share is also known as a freed-up share.
• Fund : Amounts of money collected in a savings bank or a deposit to effect certain financial activities, such as repayment of debts, agricultural development, developmental aid, etc..
• Futures Market : Contracts are traded for delivering certain amounts of merchandise at a set point in time.
  
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• Gain : Increase in value as a result of speculation in Stock Market or real estate trading etc., it tends to coincide with a phase of high demand and relatively rigid offer.
• Gilt-edged security : Used to refer to investments in fixed-income stock, guaranteed by the State.
• Greenshoe : Option granted by the issuer to the insurer to issue additional shares should there be a surplus of demand.
• Guru : Used to describe analysts whose reputations make their pronouncements almost indisputable.
  
  I  
  
• Implicit futures contract : An asset upon which futures operations are to be effected.
• Increase in share capital : Operation through which a company increases its capital by issuing new shares.
• Indices : Mode of converting chronological or synchronous series into immediately comparable terms in a simple manner, by taking the first or most expressive datum as base value 100 against which the other data will be referred, expressing them in proportion to said base value.
• Integer : One hundredth part of the nominal value of a security.
• Interest rate : Fixed rate securities' retribution, paid by the issuers for being able to use the money.
• Interest rate : The theory of economics defines it as the price of money. It is the way to quantify how much money the debtor must pay the creditor for the capital he has received on credit.
• Investment environment : The situation of Stock Market listings as a result of the action of various kinds of event at the same time.
• Investment : This is the monetary outlay in a project, with the intention that cash flow will more than compensate for the capital invested.
• Issue Price : This is the amount of money for which the issuer is willing to sell his/her stock during the issue.
• Issue rate : This is the issue price of stock, calculated as a percentage.
• Issue value : Price at which the stock was placed on the market.
• Issue : The action of placing stock for subscription in circulation for the public.
  
  L  
  
• Legal Interest : This is used to fix additional charges accruing as a result of late payment of taxes.
• Liquidity : The situation the investor is in prior to placing his financial resources. Proprietorship of stock or securities which can be changed into active cash to a greater or lesser degree.
• Listed stock : Stock admitted for trading on the Stock Market.
• Listing on the Stock Market : procedure to get stock admitted for negotiation on a Stock Market.
• Listing price : Exchange rate for a stock on the Stock Market.
• Listing price : Price attained by a stock on the market.
• Long Term : Generally used to describe maturity at more than five years.
• Loss : Fall in value of certain securities between the time they are purchased and the time they are sold.
  
  M  
  
• Market : Institution in which supply and demand between the interested parties converge.
• Maturity : Date of amortisation or payment of interest on fixed-income stock.
• Maximum : The top listing price at which a purchaser is inclined to buy.
• Money position : This situation arises when there is an excess of demand for a stock.
  
  N  
  
• Negotiable stock : Stock which can be traded on organised secondary markets
• Nominal Value : The value given on the security.
• Nominal : Face value of a stock or security.
• Nominative (adj.) : Used to refer to securities or accounting entries held by a person, giving name and surnames thereof, as opposed to bearer securities and entries.
• Nominative Share : The name of the legitimate holder thereof appears on the share.
• Non-voting share : Allows the company to attract own funds without affecting the control of the company.
• NYSE : Acronym of the "New York Stock Exchange".
  
  O  
  
• Old Share : Any share in existence prior to an increase in share capital.
• OPA : "Oferta Pública de Adquisición" [Public Offer to Purchase - Takeover bid]. A Stock Market operation whereby an individual or a company makes a public offer to the shareholders of a certain listed company, stating that he/it is willing to purchase any securities offered against a certain price, so as to obtain the necessary amount of paid-in capital to attain a dominant position within the company in question.
• Opening price : The initial exchange rate of a security during a Stock Market session.
• Option : This is the right to purchase or sell an asset, known as an underlying asset, sometime in the future at a price which has already been agreed.
• Options Markets : Purchase and sale contracts are traded over a specific stock or product listed in the market - the one referred to in the contract -at a certain price and, in some cases on futures markets, once a certain length of time has elapsed.
• Outcry : Old system for buying and selling on the Stock Market where the orders were called out.
• Overvaluation : Sale price which is higher than the true value of the shares.
  
  P  
  
• Paid-in share : This refers to a share whose full nominal value has been paid in.
• Paper position : This situation arises when there is an excess of offer of a stock.
• Paper : This term is used when there is a glut of offers, in such a way that it can be taken up by the demand.
• Par rate fall : Listing exchange rate at less than 100% or below the nominal value of the stock.
• Parity : Equivalence between the nominal and effective values of securities.
• PER : Listing price/profit ratio.
• Placing : Prior placement of a stock among institutional investors, before placing it on the secondary market.
• Policy : A public document acknowledging legitimate proprietorship of stocks, itemised as pertaining to a holder.
• Portfolio company : This is a company entrusted to hold the shares of other companies, to control them or to obtain yield from dividends or increases in value. It does not normally want to control these companies.
• Preferential Share : This kind of share confers a special right upon the holder thereof.
• Profit : Difference between income and expenditure on an operation.
• Promissory Note : Document in which the signatory acknowledges his obligation to pay a certain amount of money within a certain length of time.
• Public Debt : Fixed income stock issued by the State, listed on the Stock Market.
• Purchase and sale with option : Stock Market operation at term in which any of the parties has the right to demand handover or receipt of a number of shares of the same kind, in the same amount or multiple thereof, as in the initial operation, through payment of the difference with regard to the steady price listed for the same stock or term.
• Put : Selling option for a security.
  
  R  
  
• Random walk : "Efficient market hypothesis."
• Ratio : Quantified relationship between two phenomena, representing a specific situation of profitability, use of another's resources, level of investments, etc.
• Repurchase agreement : Sale of stock with an agreement to repurchase
• Revaluation : Rate of yield consisting of the increase in value of the traded securities based on the growth of the issuer.
• Rights market : Created for the purchase and sale of preferential subscription rights.
• Risk spread : Stock placements from various sectors (both fixed income and equity) are distributed so that, should any of them fall, the investor's whole portfolio will not suffer.
• ROA [Return on Assets] : This expresses the financial yield of the company It is the ratio between profit before interest and tax (EBIT) and the total assets.
• ROE [Return on Equity] : This expresses the financial profitability of a company (yield on own funds). It is the ratio between net profit and own funds.
  
  
  S  
  
• Secondary Market : Trading is effected using already existing stock which is in circulation.
• Security : Stock issued en masse which confers the same rights and which is characterised by being easy to trade.
• Sell : A term used on the trading floor to express an offer. It means "I want to sell".
• Settlement : Final stage of the investment process, consisting of the handover of stock by the vendor and the handover of money by the purchaser.
• Share to the bearer : The holder justifies proprietorship by possession thereof.
• Share with premium : Share issued with a value exceeding its nominal value.
• Share : Each of the parts into which the structured capital of a joint stock company is divided, giving the holder shareholder rights.
• Shareholder : Holder of one or more shares. Ownership thereof gives the holder voting rights, the right to attend General Shareholders' meetings, the receipt of dividends and share in liquidation, the right to information and preferential subscription rights, should any further shares be issued.
• Shareholder's yield : This links the profit distributed by a company between the shareholders and the amount in capital they have really paid in.
• Shareholding in investment funds : Securities transferable both on and off the Stock Market, giving the holders the right to exercise their inherent rights as shareholders in the fund. They are issued as "certificates".
• SIM : Acronym of "Sociedad de Inversión Mobiliaria" [Securities Investment Company].
• SIMCAV : Acronym of "Sociedad de Inversión Mobiliaria de Capital Variable" [Equity Securities Investment Capital Company].
• SIS : Acronym of the Stock Market Interconnection System
• Split : Increase in the number of shares in circulation as a result of reducing the nominal value of each share. It consists of increasing the number of shares without increasing the capital of a company.
• Spread : Banking differential.
• Stagflation : Stagnation plus inflation.
• Stock : Value of a security on the Stock Market
• Stock analysis : Division of a whole into parts, so that each component thereof can be individually studied. Detailed study of legal, economic, financial and Stock Market aspects of negotiable stock, which may condition an investment.
• Stock Exchange : Market upon which stocks are traded.
• Stock Market (adj.) : Everything related to the Stock Market.
• Stock Market : The focus of supply and demand for listed stocks. Place upon which shares and bonds are contracted.
• Stock Market capitalisation : The worth of a company, obtained by applying the listing price to the shares number of shares in its capital.
• Stock Market crash : Huge fall in the listing prices of most of the stocks on a certain market.
• Stock Market Law : A series of legal regulations governing the Stock Market.
• Stock Market operations : Purchase and sale of listed stock, effected on the stock exchange through a stockbroker.
• Stock Market orders : These are orders given to a single stockbroker or agency for the purchase and sale of listed stock, regardless of the means used for notification thereof.
• Stock Market paper : Securities.
• Stock Market price : Monetary value of the stock traded on the Stock Market.
• Stock Market transaction : A purchase and sale operation effected on the Stock Market.
• Stock Market yield : Positive or negative annual difference between the listing price at close over two consecutive years, plus dividends and profit as a result of increases in capital effected during that period.
• Stockbroker : A Stock Market intermediary legally permitted to operate on the stock Market on behalf of its clients.
• Stop loss : "Stop loss" Refers to the order to sell stock when listing prices fall beneath a certain predetermined level.
• Subscription rights : The preferential right of a shareholder to subscribe new shares when there is an increase in capital.
• Sustained (adj.) : A stable market where the prices are not falling.
• Swap : A financial operation in which two parties agree to exchange the flow of interest and/or principal resulting from a true or fictitious financing deal.
• Syndicated share : This kind of share is bound by an agreement not to transfer it without the prior agreement of other partners, and is part of a block of shares which can exercise pressure on the company management.
  
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• TIR : Acronym of "Tasa Interna de Rendimiento" [Rate of Internal Yield]; This is the updated discount rate to equalise positive and negative cash flows
• To discount a dividend or a right : The stock is first listed, generally accompanied by a fall in price, on the due date of said dividend or subscription right.
• Transparency : A state on the Stock Market whereby all the purchasers are aware of what the vendors are proposing and vice-versa.
• Treasury Bond : Issued periodically by the State, these bonds bear a single payment of interest at the time of purchase, their profitability ratio is low, there are no tax withholdings, they are made out to the bearer, and there is no duty of notification to the Tax Authorities as to the identity of the holder
• Trickle : Continual, constant small drops in the listing price of a security.
  
  V  
  
• Value : This measures the importance attached to goods which satisfy human need.
• Variability : Wild fluctuation of the listing prices of a stock along a trend line.
• Volatility : The degree of sensitivity of a security or a group thereof to the general trends in listings on the market they are traded on, which may be given in the corresponding index.
• Volume of trading : Amount of trading effected in a set security over a certain length of time.
  
  W  
  
• Warrant : A share certificate, or part thereof, giving the right to purchase one or more shares in a certain company (at a certain date and for a certain predetermined length of time), which issues them precisely at the time at which the warrant right can be exercised.
  
  Y  
  
• Yield : Profitability of the securities.
• Yield : This is the relationship, generally expressed as a percentage, between the financial return which a certain operation has produced and the sum of money invested in the operation.

Z 

• Zero coupon : These are securities which are placed with a discounted value, this difference being what makes the stock so interesting.