RepoRt on - BNP Paribas

corporate governance series of principles and recommendations to be followed by the management of listed
companies.
coupon the coupon represents the right of the security for a given year.
custody fee fee received by a bank or broker to hold and service securities recorded in a securities account.
custody fees are payable annually in advance. they are not refunded if the securities are
sold during the year, but no fees are payable on securities deposited during the year until the
beginning of the next year.
Cvr (Contingent value
rights Certificate)
cvr (contingent value rights certificate) financial instrument generally issued in connection
with the acquisition of a listed company, guaranteeing the value of the underlying security at a
pre-determined date. the cvr entitles the shareholder of the target to receive an amount equal
to the positive difference between the offer price and a «reference» price.
derivatives contracts whose value is based on the performance of an underlying financial asset, index or
other investment, used to hedge or profit from future changes in the value of the underlying.
dilution impact on the rights attached to a share of the issue of securities (in connection with a capital
increase, a merger, a stock-for-stock tender offer or the exercise of rights), assuming that there
is no change in the total income of the issuer.
dividend Portion of net profit that the annual general meeting decides to distribute to shareholders. the
amount of the dividend is recommended by the board of directors. it represents the revenue
on the share and the amount can vary from one year to the next depending on the company’s
results and policy.
eai (enhanced analytics
initiative)
an international group of financial institutions, who cooperate on taking into account nonfinancial
or non-accounting analysis in classical financial analysis.
eoniA euro overnight index average.
epe created in 1992, epe (businesses for the environment) is an association regrouping 40 big businesses
in france, who are looking to better take the environment into account in their strategic decisions
and their day to day management.
equator principles a voluntary set of guidelines established in 2003, that help financial institutions to better evaluate,
reduce, document and monitor potential social and environmental issues arising from project
finance activities.
eua (european union
emission allowance)
allowance to emit greenhouse gases accorded to participants in the european union emission
trading system.
euRex a derivatives market.
euribor (european
the most commonly used money-market rate in the eurozone.
interbank offered rate)
euroclear formerly sicovam. clearing house for securities transactions.
euronext sA company that operates the Paris, brussels and amsterdam stock exchanges. euronext sa
establishes market rules, decides to accept or reject listing applications and manages all trading
technologies.
FCp (Fonds Commun fund invested in stocks, bonds and/or money-market securities. a fcP is similar to a sicav, but is
de Placement)
not a separate legal entity. fcPs are generally smaller than sicavs and are easier to manage.
they are subject to less restrictive regulations and can be more specialised.
fRb french retail banking.
free cash flow cash available after financing operations and investments, available to pay down debt.
free float the amount of capital which is not under the control of stable shareholders. in other words,
capital that can be freely bought and sold and is therefore available to investors, excluding for
example shares held by the state, or shares that are subject to shareholders’ pacts and so on. on
1 december 2003, the stocks that make up the cac 40 index became weighted according to
their free floats, as opposed to their market capitalisations. this change was born out of a desire
to be consistent with the major world market indexes which already function in this manner, and
to ensure greater comparability between industries and shares.
gain/loss on securities Positive/negative difference between the sale price of a security and the purchase price.
goodwill difference between the cost of shares and the group’s equity in the fair value of the underlying
net assets.
hedge funds funds that take both long and short positions, use leverage and derivatives and invest in many
markets.
150 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility