RepoRt on - BNP Paribas

gloSSaRy
Accretion reverse of dilution. accretion is where a corporate action (share buyback or issue of shares in
a smaller proportion than the increase in income following a merger or public tender offer, for
example) leads to an increase in earnings per share.
adr (american
depositary receipt)
negotiable certificates representing one or several shares. their face value is stated in dollars and
interest is also payable in dollars. adrs allow american investors to buy shares in foreign-based
companies that are not quoted on an american stock exchange.
Arbitrage activity that consists of attempting to profit by price differences on the same or similar financial
assets. for example, in the case of a takeover bid, where the predator offers a price that exceeds
the price at which the target’s shares are trading.
Attribution right the right to receive bonus shares issued in connection with a capital increase paid up by
capitalising retained earnings. attribution rights are quoted.
b2b or btob business to business: sales of products or services by one company to another.
b2c or btoc business to consumer: sales of products or services by a company to a consumer.
b2e portal intranet site for group employees. the home page includes a browser, links to services and a
wealth of information concerning the various functions within the group, practical information
for employees and career information.
back office department responsible for all administrative processing.
bnl bc bnl banca commerciale (formerly banca nazionale del lavoro).
bond/debenture debt security whereby the issuer undertakes to pay the lender a fixed capital sum at a specific
future date, plus twice-yearly or annual interest payments. interest payments — generally at fixed
rates — may vary over the life of the bond. debentures are unsecured bonds.
capital amount of cash or assets contributed by shareholders, plus any profits, retained earnings or
premiums transferred to the capital account. the capital may be increased or reduced during
the life of the company.
capital increase a method of increasing a company’s shareholders’ equity. the capital may be increased by issuing
new shares for cash or in exchange for assets, such as shares in another company. alternatively,
it may be increased by capitalising additional paid-in capital, retained earnings or profits and
either raising the par value of existing shares or issuing new shares without consideration. existing
shareholders may have a pre-emptive right to subscribe for the new shares or this right may
be cancelled. a capital increase may be carried out to give new investors an opportunity to
become shareholders. all capital increases must be authorised in advance by the shareholders,
in extraordinary general meeting.
cash flow cash generated by operations that can be used to finance investment without raising equity or
debt capital.
cecei Comité des Établissements de Crédit et des Entreprises d’Investissement: committee headed by
the governor of the banque de france responsible for monitoring the proper operation of the
french financial and banking system.
ceR certified emission reductions are carbon credits, equivalent to one tonne of co equivalent of
2
emission reductions under the clean development mechanism (cdm) of the Kyoto Protocol.
cib corporate and investment banking, one of the bnP Paribas group’s core businesses.
clean development
mechanism (Cdm)
mechanism defined in the Kyoto Protocol, allows states to realise projects abroad that aim to
reduce emissions and then to deduct this reduction from their own national reduction objectives
under the Kyoto Protocol.
consolidated net income net income of the group after deducting the portion of the profits of subsidiaries attributable to
minority shareholders.
convertible bond bond convertible into the issuer’s shares on terms set at the time of issue.
149 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility