Home » Financial glossary

Financial glossary

A debt security that can be traded on the market, issued by a listed company to obtain a loan from the public. There are various types of bonds: indexed, convertible, cum warrant etc.
Capital gain
The capital gain obtained when a security is sold at a higher level price than the purchase price. It does not include the amount of any matured dividends.
Capital stock
Its amount is established in the company statute. For joint-stock company, the capital stock is espressed as a given number of shares, each of them having a nominal value.
Market value of a listed company, equal to the product of the number of its shares and their price.
Cash flow
The company total profits minus taxes and dividends paid, plus reserves for amortisation of fixed capital. It indicates the total amount of liquid resources available for the company management of investments, acquisitions, dividends, etc.
(National Security and Exchange Commission) It is the highest inspection and control institution for Italy’s Stock Exchange markets.
Corporate governance
A set of rules, systems and company management and control organisations.
A part of stock company profit distributed to shareholders as remuneration of the capital invested by them in the company.
(Earnings Before Interests ans Taxes) A parameter, widely used by financial analysts, measuring the profit before payment of interest and any income tax. It is equivalent to “operating result”.
An index  represented by the prices of 40 most frequently traded securities on the MTA (Telematic Stock Market), the so-called Blue Chips. The index composition is reviewed periodically.
Institutional investors
This category includes mutual investment funds, pension funds, insurance companies, patrimony management companies and all intermediaries mobilising financial resources in large quantities from investors.
Internal dealing
It refers to operations involving securities listed by the issuer and by its controlled company, performed by internal persons or people who have access to price sensitive information. These people (the so-called “ relevant persons”) must fulfill particular information and behaviour obligations.
Official price
This is the average price of a security, weighted according to the total amount of shares exchanged during a given Stock Exchange day.  Unlike the reference price, the official price therefore reflects the trend during the whole session.
Price sensitive
Price sensitive information regard events not yet disclosed to the market that could affect the net worth, income and financial position of the issuer, as well as their management affairs.
(also credit rating) A qualitative assessment of the financial capacity of a business, institution or country, as well as its trustworthiness as a debtor. It indicates to banks and investors the level of risk associated with government bonds or securities, and the amount of credit that can be granted to a given debtor. Ratings are assigned by business information agencies: the most well-known are the American Moody’s Investors Service and Standard & Poor’s.
Reference price
A price calculated continuously (updated in real time) and representing a weighted average of prices for the last 10% of shares traded during the given Stock Exchange day. The last reference price calculated by the Stock Exchange telematic system expresses therefore the price trend for the given security at the time the stock market is closed.
Securities representing participation in the capital of a given company. There are various types of shares listed on the Stock Market: ordinary, privileged and savings shares.
It indicates a new or a very recently established company.
Stock option
A form of incentive and remuneration for the staff and/or directors of a company, consisting of assigning the option to subscribe or to buy in the future company shares at a predetermined price.
Substantial shareholdings
As for listed companies, the law defines as “substantial” any shareholding exceeding 2% of the capital. However, in the case of shares held by a listed company in a non-listed stock company or in a limited liability company, the threshold beyond which the participation is defined as “substantial” rises to 10% of the capital.
Technical analysis
The study of the financial market behaviour, mostly through charts, in order to make an estimate of possible future trends.