|
Home
> Polish
Finance
> Financial
Glossary |
|
NewPoland
Finance |
|
|
|
A |
B
|
C |
D |
E |
F |
G |
I |
K |
L
M |
N |
O |
P |
Q |
R |
S |
T |
U |
W |
Z
|
|
|
|
A
|
back
to top
|
Admitting for trading
a resolution by the Exchange Supervisory Board that admits securities for
trading on the exchange
Affiliate
a brokerage firm that is not a WSE member and which places orders through
a WSE member
Allocation
(in the single-price auction system) the partial filling of a buy or sell
order whose price limit equals the price set on a balanced market, in the
event of an excess of sell or buy orders
Allocation rate
(in the single-price auction system) the ratio indicating the degree to
which limit orders with price limits equal to the single price were filled;
the allocation is conducted on a balanced market in the event of an excess
of sell or buy orders
Assimilation
the fusion of two quotation lines of the same security
|
|
|
|
B
|
back
to top
|
Balanced market
(in the single-price auction system) a situation in which all PKC orders,
limit buy orders with price limits higher than the price set at auction, and
sell orders with price limits lower than the set price can be executed in
full, and when the turnover volume for this price is at its maximum level
Balancing phase
(in the single-price auction system) the first part of post-auction
trading, which is when orders balancing supply and demand are accepted at
the price set at the auction
Base index value
the initial (first), arbitrarily defined value of an exchange index; the
base value for WIG, WIG20, WIRR indices is 1,000; for NIF it is 160
bd (Polish abbreviation for
"ex-dividend")
information posted next to a given security's quotation; the letters
signify that shares without dividend rights are the subject of trading
Bear market
a prolonged period during which stock market prices fall
Block trade
a transaction concluded off-session on the WSE; the minimum size (block)
is set in the WSE Rules; a block trade in an exchange- listed security may
be concluded before it is introduced to trading on the exchange (pre-session
transaction) or after (off-session transaction)
Board lot (round lot)
a transaction unit; the number of securities (or multiplicity thereof) for
which transaction may be concluded in a given system
Bond
security issued in series, in which issuer states that he is a debtor to
the bond's owner (bondholder) and undertakes an obligation to perform a
specified service (to pay the bondholder a specified sum of money, usually
in specified intervals, and to repay the principal amount of the loan at
maturity); a convertible bond gives its owner the privilege to exchange for
other securities of the issuing company at some future date and under
prescribed conditions
Book value
a company's net asset value (defined as assets minus liabilities)
bp (Polish abbreviation for "ex-subscription
rights")
information posted next to a given security's quotation; the letters
signify that shares which no longer have subscription rights are the subject
of trading
Broker's order
an order placed by a WSE member firm based on a customer's order
Brokerage firm (brokerage house)
an entity that has Polish Securities and Exchange Commission permission,
among others, to: offer securities in public trading, acquire and sell
securities, and offer portfolio management and investment advice services to
its clients
Bull market
a prolonged period during which stock market prices rise
|
|
|
|
C
|
back
to top
|
Cedula
the WSE's official bulletin; Cedula lists quotations and provides
information on listed securities, as well as on the exchange, its members
and listed companies
Continuous quotation system
continuous trading; the system in which transactions for a given security
are concluded at various prices during one session
Contract note
the proof of conclusion and the basis for the clearing and settlement of
an exchange transaction
Conversion of NIF certificates
conversion (exchange) of dematerialized NIF certificates into a portfolio
of 15 NIF shares (one share of each fund); the conversion process started on
May 12, 1997, and will last to December 31, 1998
Crossing phase
(in the single-price auction system) the second part of post-auction
trading; sell and buy orders at already established price may be submitted
and executed; a crossing phase occurs automatically after a given security
has reached market equilibrium
Current and periodical reports
information that an issuer of publicly traded securities is required to
disclose to the public
|
|
|
|
D
|
back
to top
|
Demand for session
the total value of securities in all buy orders, calculated according to
the order price, and for PKC orders at the market price
Dematerialization of NIF certificates
the conversion of physical (paper) certificates into computer records;
carried out by the National Depository for Securities
Derivatives
instruments, whose value depends on the price or value of their underlying
instrument
Divergent market
an unbalanced market in which the highest price limit on a buy order is
lower than the lowest limit on a sell order, or a market in which there are
only buy or only sell orders; a market with no orders at all is also
considered a divergent market
Dividend
the amount of a company's profit to be
distributed to shareholders;
determined by a resolution of the Company's General Meeting of
Shareholders
Dividend yield
a ratio calculated as paid-out dividend in the last financial year to the
average market value of the company for the same period
DVP (delivery versus payment)
the rule governing settlement of exchange transactions; DVP is based on
the simultaneous transfer of money and securities
dw (Polish abbreviation for "before
split")
information posted next to a given security's quotation; the letters
signify that the security will undergo a split
|
|
|
|
E
|
back
to top
|
Estimated price
(in the single-price auction system) a security price determined by a
specialist on a divergent market
Exchange Court
a permanent body established to act as an arbitrator in conflicts between
parties to exchange transactions and between the exchange and its
shareholders
Exchange data feed services
exchange data that the WSE makes available in an electronic format to data
vendors
Exchange index
an indicator of the price changes of all securities of a given type or
their selected group
Exchange Management Board
the WSE's executive body; it consists of five members including its
President; the Board directs the business and manages the assets of the WSE;
it also represents the exchange in external contacts
Exchange member
an entity that operates a brokerage firm, is a shareholder of the WSE, and
is approved by the Exchange Supervisory Board to operate on the exchange -
in particular to conclude exchange transactions
Exchange Supervisory Board
the supervisory board of the company that operates the WSE; at the WSE, in
addition to performing duties regulated by the Commercial Code, the board
also approves securities for exchange trading and brokerage firms to operate
on the exchange
Exchange trading session
the period of time during which transactions may be concluded on the
exchange; on the WSE, sessions are held on the trading floor from Monday to
Friday, between 11.00 and 15.00
Exchange transaction
a transaction concluded on the WSE in accordance with the exchange's
rules and regulations; the transactions involve securities that have been
approved for exchange trading, rights to securities, or other financial
instruments
|
|
|
|
F
|
back
to top
|
FESE
the Federation of European Stock Exchanges, an organization that groups
together ex-changes from EU countries; the WSE has been a corresponding
member of FESE since 1991 and takes part in work carried out by the European
Stock Exchanges Forum (an emerging markets subgroup)
FIBV
Federation International des Bourses de Valeurs (International Federation
of Stock Exchanges), an organization that groups together the biggest and
best-organized exchanges; the WSE has been a FIBV full member since October
10, 1994
Floor
traditional place at the seat of the exchange where transactions are
concluded
Free market
part of the exchange market where shares that are admitted for public
trading, but do not meet requirements for listing on the WSE main or
parallel markets, may be traded
|
|
|
|
G
|
back
to top
|
General Meeting
a joint-stock company's highest authority; General Meetings are called at
least once a year
|
|
|
|
I
|
back
to top
|
Intervention
(in the single-price auction system) a situation during a trading session
in which a specialist for a given security buys or sells securities (out of
or for his own inventory) in an attempt to balance the market
Introduction of securities to exchange trading
a decision in the form of a resolution by the Exchange Management Board
which deter-mines the first day of quotation, the quotation method, the
number of securities introduced, the transaction unit, the session days and
the method of the securities' introduction to trading
IOSCO
the International Organization of Securities Commissions; the Polish
Securities and Exchange Commission has been a member of this organization since 1991
Issuer
an entity issuing securities in its own name
|
|
|
|
K
|
back
to top
|
Komisja Papierow Wartosciowych i Gield
[KPWiG]
(Polish Securities and Exchange Commission)
a government body that ensures proper securities market activities and
investors' safety and oversees licensing activities on the securities
market; the Commission initiates and undertakes such actions
Krajowy Depozyt Papierow Wartosciowych SA
[KDPW S.A.]
(National Depository for Securities)
a joint-stock company established by the State Treasury and the Warsaw
Stock Exchange; the Depository's main tasks include: keeping and registering
publicly traded securities; collecting interest, dividends and redemptions;
issuing depository receipts; facilitating settlement and clearing of
transactions
ks (Polish abbreviation for "estimated
price")
information posted next to a given security's quotation; the letters
signify that an estimated price was determined for the security
|
|
|
|
L
|
back
to top
|
Last price
(in the continuous quotation system) the price at which the last
transaction for a given security was concluded in a given session
Limit order
an order stating a security's maximum purchase price or minimum sale price
Listed company
a joint-stock company of which securities from at least one issue are
admitted for trading on the exchange
|
|
|
|
M
|
back
to top
|
Main market
part of the exchange market that encompasses the securities with the
highest liquidity; issuers on the main market generally have more capital
and longer histories
Market capitalization
the total value of all listed securities (or group of securities) based on
their market prices
Market maker
an exchange member firm which based on the agreement with the WSE is
obliged to enter its own buy and sell orders in the order book (on the
derivatives market)
Market value of a company
the value of securities issued by a company, based on the company's
current market price
Maturity
for bonds; the day upon which the issuer is obliged to pay the bondholder
the bonds' nominal value plus interest
|
|
|
|
N
|
back
to top
|
National Investment Fund (NIF)
a joint-stock company established within the framework of the National
Investment Funds Program (Mass Privatization Program); the fund holds shares
of privatized companies brought into program by the State Treasury;
currently, 15 National Investment Funds exist
NIF certificate (participation certificate)
a bearer security (with no par value) representing one share in each of
the 15 National In-vestment Funds; in the framework of the NIF program, each
adult citizen of Poland was entitled to one certificate for an
administrative fee of zl 20; certificates are valid until December 31, 1998
NIF index
the National Investment Funds Index; a portfolio price index encompassing
shares of 15 National Investment Funds, received upon the conversion of one
NIF certificate; calculated since June 12, 1997
NIF market
the part of the exchange market where NIF certificates are listed
nk (Polish abbreviation "buy order
surplus")
(in the single-price auction system) information posted next to a given
security's quotation along with a percentage indicating the level of which
buy orders for that security with price limits equal to the set price
remained unfilled on a balanced market
Non-transaction price
(in the single-price auction system) a given security's price that equals
an upper or lower price limit that was set when there was at least a
fivefold surplus of sell or buy orders for the security; there is no trading
in that security on a given day when a non-transaction price is determined
ns (Polish abbreviation for "sell order
surplus")
(in the single-price auction system) information posted next to a given
security's quotation along with a percentage indicating the level at which
sell orders for that security with price limits equal to the set price
remained unfilled on a balanced market
|
|
|
|
O
|
back
to top
|
ok (Polish abbreviation "non-transaction buy
price")
(in the single-price auction system) information posted next to a given
security's quotation; the letters signify a non-transaction price because of
excessive demand
Opening price
(in the continuous quotation system) a
securities' price that was
determined based on orders accepted before the trading session (and based on
relevant rules governing the single-price auction system); if the opening
price cannot be determined, the price of first transaction becomes the
opening price
Order book
(in the single-price auction system) orders for a given security that are
sorted according to price; the orders are submitted to the ex- change before
a given session and taken into account when setting a price for the session
os (non-transaction sell price, in Polish
abbreviation)
(in the single-price auction system) information posted next to a given
security's quotation; the letters signify a non-transaction price because of
excessive supply
|
|
|
|
P
|
back
to top
|
P/BV
Price/Book Value ratio; a listed company's market value compared to its
book value
P/E
Price/Earnings ratio; a listed company's market value compared to the sum
of its profits and losses for the last four quarters
Parallel market
the part of the exchange market that encompasses securities with lower
liquidity; issuers on the parallel market generally have less capital and
shorter histories than do companies on the main market
PCR (Polish abbreviation for
"non-competitive market order")
(in the single-price auction system) an order that does not participate in
the price-setting process, and is executed after the other orders placed
before the session; contains no price limit
PKC (Polish abbreviation for "competitive
market order")
an order that participates in the price-setting process and does not
contain a price limit; has the same priority of execution as limit orders
placed before the session
Post-auction trading
(in the single-price auction system) the part of a session during which
transactions for a given security may be concluded based on an already
established price; post-auction trading consists of two phases: a balancing
phase and a crossing phase
Price variation limits (price brackets)
defined for each quotation method and type of security maximum price
change from the reference price or maximum change during the session
Prospectus
a document that provides detailed information on an issuer's legal and
financial status, as well as on the issuer's securities to be introduced to
public trading
pw (Polish abbreviation for "after
split")
information posted next to a given security's quotation; the letters
signify that the security underwent a split
|
|
|
|
Q
|
back
to top
|
Quotation market
a part of the exchange market that has its own listing requirements; the
WSE has three quotation markets: main, parallel and free; NIF certificates
are listed on a separate NIF market
|
|
|
|
R
|
back
to top
|
Rate of return
increase of the value of investment including dividends or interest and
subscription rights; in percentage
Reduction
(in the single-price auction system) a proportional reduction (carried out
by the specialist) to the degree that buy or sell orders scheduled for
execution are filled; on an unbalanced market
Reduction rate
a ratio specifying the degree to which orders on an unbalanced market were
reduced
Reference price
(in the single-price auction system) a given security's price set during
the last trading session; (in the continuous quotation system) for
securities quoted in both trading systems - the price determined on the
same day in single-price auction system; for securities quoted only in the
continuous trading system - the last price from the previous session
rk (Polish abbreviation for "reduction of
buy orders")
(in the single-price auction system) information posted next to a given
security's quotation along with the degree (in percentage) to which the
filling of all PKC buy orders, and orders with price limits equal to or
higher than the single-price, was reduced
rs (Polish abbreviation for "reduction of
sell orders")
(in the single-price auction system) information posted next to a given
security's quotation along with the degree (in percentage) to which the
filling of all PKC sell orders, and orders with price limits equal to or
lower than the single-price, was reduced
|
|
|
|
S
|
back
to top
|
Securities portfolio management
services rendered by a brokerage firm to invest in securities on behalf of
its client; requires permission of the Polish Securities and Exchange
Commission
Settlement price
the value according to which exchange transactions are cleared; the
settlement price for a given bond equals the bond's quotation multiplied by
its nominal value plus interest due; for shares and NIF certificates it
equals the market price
Share
a type of security; a document certifying that its owner holds a portion
of a joint-stock company's capital; the document gives the owner the right
to receive dividend and attend the General Meeting of Shareholders
Share issue price
the selling price of securities on the primary market
Share split
the exchange of all of a given company's shares for a proportionally
larger amount of shares with a lower nominal value
Shareholder
an owner of shares
Shares dispersion
one of the listing requirements; the minimum number of shareholders of a
given security for the main market is 500; for the parallel market the
number is 300
Single-price
(in the single-price auction system) the price determined by a specialist
based on the orders received for a given security; all transactions during a
given session are concluded at this price
Single-price auction system
the trading system in which all transactions for given security are
concluded at one set price (single-price) throughout an entire session
Specialist
(in the single-price auction system) a member of the WSE who is obligated
to set the price for a given security and to ensure proper market balance
and liquidity; the specialist for a given security is nominated by its
issuer, upon approval of the WSE Management Board
Subscription right
a shareholders' right to subscribe for shares of a new issue (pre-emptive
rights)
Supply for session
the total value of securities in all sell orders, calculated according to
the securities' market price
Suspension of quotation
a temporary suspension of trading for a given security of a given issuer
for a determined time period; a suspension can take place upon request from
the issuer or out of the best interest and safety of market participants
|
|
|
|
T
|
back
to top
|
T+3
the time frame for settling transaction concluded on the WSE; the
transaction date plus three working days; for T-bonds settlement is done on
a T+2 basis
Trading system
the method of matching orders and setting transaction prices; on the WSE,
transactions are concluded in two trading systems: single-price auction and
continuous trading
Transaction settlement
providing securities and money to the buyer and seller as a result of a
concluded transaction
Treasury bills
short-term securities issued by the State Treasury (with maturities of 52
weeks or less); Treasury bills are not traded on the WSE
Trust fund
a pooled fund that a trust fund corporation manages for its customers by
making investments; each fund has clearly stated investment objectives, and
a given fund's volume depends on its number of customers
Turnover value
the total value of all transactions concluded for a given security or on a
given market; turnover on the WSE is calculated as the sum of the value of
all buy and sell transactions
Turnover volume
the total number of securities traded, calculated for a given security or
for a given market
|
|
|
|
U
|
back
to top
|
Unbalanced market
(in the single-price auction system) a situation in which a price that
would meet the conditions of a balanced market cannot be deter-mined
Underlying company
a company participating in the NIF program, one of 512 companies brought
into the program by the State Treasury
|
|
|
|
W
|
back
to top
|
WIG index
the Warsaw Stock Exchange Index; a total-return index encompassing all
shares listed on the main market, calculated since April 16, 1991
WIG20 index
a price index encompassing 20 of the largest and most-traded companies on
the main market; calculated since April 16, 1994
WIRR index
the Parallel Market Index; a total return index encompassing shares listed
on the parallel market, calculated since December 31, 1994
|
|
|
|
Z
|
back
to top
|
z (Polish abbreviation for "suspension of
quotation")
information posted next to a given security's quotation; the letter
signifies that the trading of the security has been suspended
zd (Polish abbreviation for "with dividend
rights")
information posted next to a given security's quotation; the letters
signify that shares carry dividend rights for the last financial y |
