Annual Report - BNP Paribas

Gain/loss on securities
Goodwill
Hedge funds
IAS
IFRS
IFU (Imprimé Fiscal Unique)
Institutional investor
Investment club
IRFS
IRS
ISIN code
LBO
LIFFE
Liquidity
LME
M & A
Market capitalisation
Market-maker/
Market-making contracts
MONEP (Marché d’Options
Négociables de Paris)
Positive/negative difference between the sale price of a security and the purchase price.
Difference between the cost of shares and the Group’s equity in the fair value of the underlying
net assets.
Funds that take both long and short positions, use leverage and derivatives and invest in
many markets.
International Accounting Standards
International Financial Reporting Standards.
French tax return issued by a bank or broker, listing all the securities transactions carried
out on behalf of the taxpayer and all the coupon payments made to the tax payer.
Financial institution which, by defi nition or by virtue of its articles of association, is required
to hold a certain proportion of its assets in stocks and shares. Examples include insurance
companies and pension funds.
A variable- or split-capital company, which enables its members to jointly manage a
portfolio of marketable securities formed from an initial investment and/or regular capital
contributions. Clubs benefi t from a favourable regime in respect of capital gains tax. The
FNACI (National Federation of Investment Clubs), which is located at 39, rue Cambon,
75001 Paris, provides on request all the information required for the launching and smooth
running of these clubs.
International Retail Banking and Financial Services. Abbreviation replaced by IRS in 2008.
International Retail Services. Abbreviation that replaces IRFS.
The new identifi cation number for securities listed on the stock market. The ISIN code
replaces the well-known Sicovam code which had since become the Euroclear code. On
30 June 2004, Euronext Paris put an end to its existing system for identifying securities
and replaced it with a system that uses ISIN codes. Having already been adopted by a
number of European stock markets including Amsterdam, Brussels, Lisbon and Frankfurt,
the new system gives a unique identity to each share and therefore facilitates cross-border
transactions between investors, primarily by improving harmonisation within Euronext.
The ISIN code comprises 12 characters: 2 letters to indicate the issuing country (e.g.,
FR for France and US for the United States) and 10 fi gures. BNP Paribas’s ISIN code is
FR0000131104.
Leveraged Buy Out. Company acquisition fi nanced primarily by debt. In practice, a holding
company is set up to take on the debt used to fi nance the acquisition of the target. The
interest payments due by the holding company are covered by ordinary or exceptional dividends
received from the acquired target.
London International Financial Futures and Options Exchange.
Ratio between the volume of shares traded and the total number of shares in issue.
London Metal Exchange.
Mergers & Acquisitions.
Value attributed to a company by the stock market. Market capitalisation corresponds to
the share price multiplied by the number of shares outstanding.
Market-makers commit to maintaining fi rm bid and offer prices in a given security by standing
ready to buy round lots at publicly-quoted prices. Market-making contracts generally
concern mid-cap stocks and are intended to enhance the stocks’ liquidity. In France,
market-making contracts (contrats d’animation) are entered into between Euronext, the
issuer and a securities dealer.
Paris traded options market, including CAC 40 index options and equity options.