NAV (Net Asset Value)

Difference between the values of assets and liabilities appraised at market conditions. Net asset value is the accounting value of the company as it appears on its balance sheet.

Share

Title of ownership representing a fraction of a company’s capital, which includes voting rights at shareholder meetings and a right to the profits made.

Shareholders' Meeting

Meeting of shareholders to approve the accounts, vote on the dividend, elect directors and authorise capital operations. It may be Ordinary, Extraordinary or Mixed.

Balance sheet

A snapshot of a company’s assets at a given moment. It summarizes all the financial resources and how they are utilized.

Market capitalisation

This is obtained by multiplying the latest share price by the number of shares making up the company’s capital.

Current cash-flow

Current self-financing capacity. Represents the sum of pre-tax profit, depreciation and some provisions.

ISIN Code (International Securities Identification Number)

E.g., Sicovam, this code consists of 12 characters, the first two corresponding to the country in which the share was issued (FR for France).

Profit and Loss account

This accounting document summarizes all a company’s revenues and expenses (charges) over a certain period. It provides essential indications about a company’s profitability and growth.

Coupon

Term describing the dividends distributed to shareholders or the interest paid periodically to bearers of bonds.

Dilutive

Lowers the earnings per share.

Dividend

The part of net profits distributed to shareholders every year, variable according to the company’s results.

Floating

Part of equity not held by permanent shareholders. Conditions liquidity.

Corporate governance

Organisation of power within a company aiming at a fair balance between the Management, Supervision and shareholders. Governance results from more marked participation by shareholders in the management of the company and the requirement of transparency in their management. The goal of Governance is to gain the confidence of markets, analysts and investors. Governance has become a criteria for rating the value of the company. In France, the principles of corporate Governance for listed companies originate from the Viénot reports in July 1995 and July 1999 and the Bouton report of September 2002.

IFRS (International Financial Reporting Standards)

Since 1st January 2005, listed companies in the European Union have adopted new international accounting standards in their consolidated accounts, known as IFRS. These new accounting standards enable investors to compare companies more easily.

Registered

Legal nature of shares. The shareholder appears in the register of the issuing company. The advantages of registration are direct information, the possibility of participating in the annual shareholders’ meeting without shareholding formalities and, for pure shares (company’s share register), exemption from custodian fees.

Loan to value (LTV)

Net financial debts for full ownership in relation to the appraised assets fully owned.

UCIT

Undertaking for collective investments for transferable securities in charge of managing negotiable securities for clients. Mutual funds (SICAVs) and unit trusts (FCPs) are UCIT.

Pay-out

The proportion of the profits made, expressed as a percentage, that a company distributes to its shareholders in the form of dividends.

PER (Price Earning Ratio)

The ratio of a company’s share price to its profit after tax, calculated per share.

Share repurchase

Operation enabling a company to increase its control or to cancel shares or exercise stock options. These repurchase plans are decided during the shareholder’s meeting, which fixes the maximum and minimum price to intervene in the market for its share.

Accretive

Increases the earnings per share.

Profit on ordinary activities

Calculated from the operating profit, minus the net financials and extraordinary expenses.

Operating profit

This is the sum of the production sold, stored and immobilised minus all ordinary management expenses, taxes (excluding company tax), depreciation and amortisation and provisions.

Exceptional profit

Corresponds to the difference between exceptional income (capital gains, etc.) and extraordinary expenses (claims, tax penalties, etc.).

Net profit

This is obtained by adding the profit on ordinary activities to the exceptional profit, minus the amount of tax on profit and employee participation.

SRD (Forward settlement system)

This is a service reserved for French and foreign securities listed on the Paris stock exchange, the most liquid securities the investor can buy (or sell) forward (one month or more) on the condition he avails of cover guaranteeing that he will be able to settle or provide the securities.

SIIC

Listed Property Investment companies: a tax status created by the French finance law of 2003.