see Public sector deficit.
(commercial law) together with the public offer for subscription, this is the legal and financial instrument used to solicit investment, through which the controlling shareholders of a company offer the investing public all or part of their voting shares.
(finance) any listed company is a public company. In order to be listed on the stock market, at least 25% of the share capital must be represented by the class of shares that must be sold to the general public of small investors.
(finance) technique for financing public works through a tender, in view of realizing a specific infrastructure.
see pro-capita income.
(finance) placement of securities with a limited number of parties that satisfy specific characteristics demanded by the owner. It differs from a public offering of shares or sale on the stock market, where everyone may participate in the purchase of the sold securities.
see Public sector deficit.
(finance) A market on which newly issued financial instruments are traded. Previously acquired securities are traded on the secondary market, where the seller’s purpose is to liquidate his financial investment.
(finance) primary dealers are the market makers on the screen-based securities market (MTS), i.e. the wholesale market of government and government-backed securities ( see Regulated markets).
This is the quotient of a share’s market price and net profit per share. It is also referred to by the acronym P/E. If the P/E is very high, analysts deduce that the stock is overvalued due to forces unrelated to the capacity of the company to generate profits, as in the case of a hostile takeover bid. If it is low, the company is considered undervalued.
(finance) the value today of a past or future amount. It is of crucial importance to financial analysts in deciding which investment to promote.
(commercial law) class of special shares that are called “preferred” because, although they have equal administrative rights with other classes of shares, they offer greater financial rights than those granted by ordinary shares. For example, they can guarantee a minimum dividend or a dividend that is greater than ordinary shares; they can grant the right to precedence in the distribution of share capital upon dissolution of the company.
(accounting) distribution of net profits in the form of dividends. In particular, accounting uses the concept of payout ratio, which is the ratio between paid dividends and net profit. This index provides an idea of the strategic choices made by the company in regard to financing of its own investments. The higher the ratio, the lower the power of net profit available to the company to finance its future projects with cash flow.