Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• glossary

PEA (Plan d’Épargne

en Actions)

French name for personal equity plans. Savings products designed to promote private share ownership, invested

in shares of companies that have their headquarters in a European Union country or in units in qualifying unit

trusts. Revenues and capital gains are exempt from personal income tax and capital gains tax provided that the

savings are left in the plan for at least five years. Investments in PEAs are capped at EUR 120,000 per individual.

PEE (Plan d’Épargne Entreprise) French name for employee share ownership plans. Payments into the plan and reinvested interest are exempt from

personal income tax provided that they are left in the plan for at least five years (with early withdrawal allowed in

certain specific cases). Surrender gains are also exempt from personal income tax.

Pre-emptive subscription rights When a company issues shares for cash, each shareholder has a pre-emptive right to subscribe for a number of

new shares pro rata to the number of shares already held. The right can be traded on the stock market. Companies

can ask the General Meeting to cancel shareholders' pre-emptive subscription rights to facilitate certain operations

or allow the company to open up its capital to new investors.

Preference shares Preference shares are shares that pay dividends at a specified rate and have a preference over ordinary shares in

the payment of dividends and the liquidation of assets. They do not carry voting rights.

Price guarantee When a company acquires control of a listed target, it is required to offer the target's minority shareholders the

opportunity to sell their shares at the same price as that received by the sellers of the controlling interest. The offer

must remain open for at least fifteen trading days.

Primary market Market where newly-issued securities are bought and sold.

Prime brokerage Activity consisting of providing a wide range of services to hedge funds, including financing, securities settlement/

delivery, custody, securities lending/borrowing, etc.

226

GLOSSARY

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