Curmi & Partners


Alternative Companies List (ACL) is a list issued by the Malta Stock Exchange providing the most recent prices and other information for companies that do not satisfy the criteria set for listing on the Official List
At best an instruction to a stockbroker to conduct the market transaction immediately and at the best possible price
At par refers to the nominal value of a security
Bargain a purchase or sale on the stock exchange
Basis point the unit of an index. The movement of an index will be described either by percentage movement or by the change in basis points
Bear an investor who thinks that the prices of investments are going to move downwards for one reason or another
Bear Market a market characterised by a consistent fall in share prices
Bid the price at which an individual/institution is prepared to pay for a particular security
Bid-Offer Spread the difference in the buying and selling price of most investments including unit trusts and assurance funds
Blue Chip a term used for an investment which is quite solid and safe. Normally these are companies with big household names such as IBM and Procter and Gamble
Bond a debt security issued by governmental or corporate entities which in return pay out a coupon (fixed interest) to investors
Bonus issue is an issue of free shares to the existing shareholders of the company
Bull an investor who thinks that prices of investments are going to move upwards for one reason or another
Bull Market a market where prices are on the rise and expected to rise further
Capital Gain the increase in price of an investment above the purchase price realised on sale of shares
Capital Gains Tax is a tax on the net appreciation in the value of an asset. In Malta all securities are free of capital gains tax
Collective Investment Scheme (CIS) is a fund made up of a number of small investors and managed by an institution which invests money in accordance with the investment criteria of the particular fund
Contract note a written confirmation of the purchase or sale of an investment issued immediately after the deal is struck
Convertible bonds   are bonds with the rights to convert to ordinary shares or preference shares at a predetermined price and at a stated time in future
Deal the point at which a bid and an offer are matched to form a trade
Debenture a bond or fixed interest security issued by a company, usually secured on company's assets
Dividend the part of a company's profits which is distributed amongst shareholders
Dividend Yield  is the dividend per share divided by the current market price of the share
DPS Dividend per share is a ratio expressing the total amount of dividends divided by the number of ordinary shares
EPS Earnings per share is a ratio expressing the company's earnings divided by the number of ordinary shares
Equities the term given to investments in companies listed on a stock exchange
Exchange rate the price of one currency expressed in another currency. Exchange rates can be quoted direct or indirect. A direct exchange rate is expressed as, EUR/USD, where EUR 0.680 = USD 1, whereas an indirect rate is expressed as EUR:USD, where EUR 1 = USD 1.47
Exchange rate risk the potential to lose money because of a change in the exchange rate 
Ex-coupon this entitles the seller of the security to keep the coupon
Ex dividend when a dividend is quoted ex, it means that the deal carries no entitlement to the distribution of the dividend
Flotation the offering of a company's stock to the public for the first time on a stock market
Fringe benefit a term used when shareholders of a company receive additional benefits over and above the dividends received
Initial charges the charges paid on investing in collective investment schemes. Normally these charges cover administration costs and commissions, which are paid by the fund manager
Initial Public Offering (IPO)  the first sale of equity by a private company to the public, sometimes also referred to as a public flotation
Interim statement  a financial report covering only a part of the financial year. Public companies normally issue six-month statements informing their shareholders about changes in the company's balance sheet and profit and loss account
Issued Share Capital   is the capital actually held by shareholders, distinct from the authorised share capital, which is the maximum amount of share capital the company can hold
Market Capitalisation the value of a company represented by a number of the total value of it shares. It is calculated by multiplying the number of shares in issue by the current market price
Mutual fund another word for unit trust, where investors pool in their money to invest using the expertise of a fund manager
Nominal value another term for par value. This is the face value of a security, which is normally 100
No-load funds a collective investment scheme with no initial and exit charges
Offer price the price at which a security is offered for sale
Official List it is a list of all securities that trade on the Malta Stock Exchange. It provides details of dividend dates, prices, rights issue and other pertinent information attached to a particular security
Ordinary shares are shares in a company that normally account for the bulk of a company's share capital
Over subscription is when more applications for a share issue / offer are received than there are shares for offer
Overvalued  is when the market prices overstate the real value of a company or market given its actual performance
Par value another term for nominal value. This is the face value of a security, which is normally 100
Portfolio  collection of investments held by an individual, corporation or fund
Preference share   are shares in a company normally paying a fixed interest, ranking after creditors but before ordinary shareholders in the event of liquidation
Premium  is a sum paid in addition to the market value of an asset 
Price-Earnings Ratio (P/E Ratio)  analysis of the market value of a share and the company's profit. It is found by dividing the market price of a share by the earnings per share
Put-through  a simultaneous deal effected by a stockbroker for two clients where one is selling and one is buying
Quoted company a company listed on the Stock Exchange
Redeemable Preference shares preference shares that the company has the right to redeem before a particular date
Register a list of holders of a security
Return on Capital Employed (ROCE) is the pre-tax profit divided by the ordinary share capital, reserves and loan stock
Rights issue an invitation to existing shareholders to acquire additional holdings in the respective company
Risk Profile the different levels of losses in the money invested one is ready to accept, as the price of potentially earning higher returns
Securities  the general term for equities, shares, stocks and debentures of all types
Share Capital represents the ownership of a company, as distinct from debt
Share premium the amount above par value that a company issues / offers its shares for sale
Share split  is the issue of additional shares with the aim of reducing the value of the existing shares
Solvency ratio a ratio used to evaluate the ability of a company to meet its long term obligations
Stocks  Stocks are simply shares of individual companies. Let's say that a company has gone through its start-up phase and is now turning a profit. It may look to expand. However, it may be difficult to do so solely through their profit margin. Therefore, they turn to financial markets to help them out. They split up their company into sections called 'stocks' and then sell those portions, however small, to the public. In this way, a person who buys stock is actually buying a piece of the company. Stock may also be called equity. 
Stockbroker  a member of the Stock Exchange licensed to deal on the market on behalf of his / her clients
Subsidiary Company   a company that is the property of another company. A company qualifies as a subsidiary, providing that the holding company holds more than voting shares in the subsidiary
Underwriter  a company that guarantees to buy all the shares in a public offering provided that they are not fully subscribed by the public
Yield a term used to describe the annual return from an investment
Yield to Call (YTC)   the Yield on a bond assuming the bond will be redeemed by the issuer at the first call date specified in the indenture agreement
Yield to Maturity (YTM) YTM takes into account gains or losses of principal at maturity. YTM allows investors to compare bonds with different maturities that sell at a price different to par
Yield to Worst (YTW) YTW is the lowest yield from a corporate bond that a buyer can expect among reasonable alternatives, such as Yield to Maturity, Yield to Call and Yield to Refunding