see Taxes.
see Working capital.
see Swap.
see Future.
see Cheapest to deliver.
see Raider.
see Warrant.
see competing takeover bid (TOB).
see CLUP.
(commercial law) this refers to the internal organization of a company, the relations amongst the persons inside the company that participate in company activities, and the measures established to protect the different external interests involved. Its aim is to assign management of the company to the most suitable businessmen, while simultaneously protecting the legitimate interests of small investors, company creditors, and employees.
see joint-stock companies.
Cooperatives are companies that constitute the means by which a number of individuals jointly engage in a business activity, just like for-profit companies. However, unlike the latter, the activity is not carried on in order to realize a profit to be distributed to the shareholders, but to satisfy shareholder needs at better rates than those offered by the market. Cooperatives are broken down into two general types, consumer cooperatives and production and work cooperatives. The aim of the former is to provide the shareholders with homes, credit, raw materials and other goods at prices that are better than those available on the market. The aim of the others is to enable the shareholders to realize a higher rate of compensation for their own work.
(finance) securities that grant the holder the right to choose before maturity of the bond whether to remain a creditor of the company, i.e. a bondholder, or become a shareholder.
see Block agreement.
see Public company.
(accounting) difference between the value of production and variable production costs. It indicates the extent to which fixed production costs and other costs stemming from other than normal operations can be covered.
see Raider.
see Cooperative.
see Block agreement.
(accounting) a group’s financial statements, prepared in such a way as to illustrate the financial health and operating results actually realized by the group of companies, construed as a single economic unit.
CONSOB is the acronym that is commonly used to refer to the Commissione Nazionale per le Società e la Borsa (the national commission for listed companies and the stock exchange), which was founded in 1974. Its responsibilities have expanded over the years, to the point where it has transformed from being the regulatory authority responsible only for the stock market and listed companies to being responsible for all regulated Italian markets, the parties that operate on them (both intermediaries and issuers) and and for all solicitations for investment of funds by the general public.
(commercial law) a public purchase offer by a group that is acting without hidden motives.
see Raider.
(commercial law) the legal obligation of someone who, after purchasing (and thus not receiving as a gift) over 30% of the ordinary share capital of a listed company, to make a public purchase offer ( see TOB) on all the remaining ordinary shares.
(commercial law) a public purchase offer ( see TOB) made by parties other than the first bidder, on the same financial instruments on which the first bidder made his offer. In financial jargon it is called a counter-TOB.
see Swap.
Future.
(finance) this is essentially a letter where the issuer recognizes its debt towards the creditor. It indicates the amount received, the applied interest rate, the date of payment, and the bank delegated to make the payment. Therefore, it is a form of short-term financing, as an alternative to a bank loan.
see Commercial paper.
see Investment services.
(OICR) see Investment services.
see Aggregate demand.
(economics) CLUP is an acronym that denotes the cost of labour per unit of product. Since the compensation of employees far and away represents the most important component of the price of a product, the CLUP trend is of critical relevance to inflation. When the Italian CLUP increases more than competing nations, the competitiveness of its domestically made products falls in comparison with those of its foreign competitors.
see Mutual fund.
(finance) during the placement of securities, claw back is the name given to a clause between the issuer and the bank syndicate that handles the operation. With this clause, the parties agree to “divert” some of the securities allocated for institutional investors towards small investors, if the latter demand many more securities than what have been earmarked for them in the allocation plan. This manoeuvre clearly reveals the importance that the issuer gives to satisfying small investors.
see Annual report.
see Board of Directors.
(finance) the cheapest security to deliver in a basket of securities upon maturity of a futures contract. It guarantees the seller maximum profit or minimum loss.
see Monte Titoli.
(“clearing house” – finance) this guarantees the collection and clearance of contracts made on stock and derivative markets organized by Borsa Italiana or managed by other companies, eliminating counterparty risk by acting as debtor towards the creditor contracting party and as creditor towards the debtor contracting party. The participants are required to deposit margins to cover open positions. This is necessary in order to amass sufficient security to cover the theoretical costs of closing positions in the event of insolvency.
see Mutual fund.
(accounting) this measures the increase or decrease in the total amount of a business’s liquid assets, which are essentially comprised by cash and cash equivalents on hand and bank and postal accounts. In the case of large, negative cash flows, the company might face a temporary lack of liquidity. If the situation endures, the company might risk bankruptcy, even if it turns a net profit.
see Accruals.
see Cash flow.
(finance) type of arbitrage where an investor buys the underlying asset for cash and simultaneously sells the associated future (carry, i.e. he “carries” the asset until the future sale). Reverse cash and carry takes place when the investor buys the future and sells for cash. The first technique is used if the price of the future is higher than its equilibrium value; the second is used if the equilibrium value exceeds the future price. This type of arbitrage entails an inherent degree of risk.
(commercial law) a complete public purchase offer on the ordinary shares of listed companies that leads to indirect ownership (through control of another company) of an equity investment exceeding 30% of the voting shares.
see Payout.
see Share capital.
(finance) a bond that is redeemable by the issuer before maturity. It may be interpreted as the result of the combination of a genuine bond with a call option in favour of the issuer (which thus accounts for its name).
(finance) in financial jargon, this term refers to options, which give the buyer of the option the right to purchase a certain quantity of underlying assets at a pre-set price (the strike price) upon maturity or by a certain, fixed date. The buyer pays a premium in order to reserve this call option. If the option is sold, it is termed a “put option.”