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

OPV (Offre Publique de Vente)
ORA (Obligation
Remboursable en Actions)
P/E
Par value
PEA (Plan d’Épargne
en Actions)
PEE (Plan d’Épargne
Entreprise)
Pre-emptive subscription rights
Preference shares
Price guarantee
Primary market
Prime brokerage
Public tender offer
Quorum
French acronym for a public offering of securities at a set price.
French acronym for equity notes, representing bonds redeemable for shares.
Price/Earnings ratio. Ratio between the share price and earnings per share. The P/E serves
to determine the multiple of earnings per share represented by the share price.
The par value of a share is the portion of capital represented by the share.
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 fi ve years. Investments in PEAs are capped at EUR 120,000 per
individual.
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 fi ve years (with early withdrawal allowed in certain specifi c cases). Surrender gains
are also exempt from personal income tax.
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 are shares that pay dividends at a specifi ed rate and have a preference
over ordinary shares in the payment of dividends and the liquidation of assets. They do not
carry voting rights.
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 fi fteen trading
days.
Market where newly-issued securities are bought and sold.
Activity consisting of providing a wide range of services to hedge funds, including fi nancing,
securities settlement/delivery, custody, securities lending/borrowing, etc.
Offer to buy shares of a company, usually at a premium above the shares' market price, for
cash or securities or a combination of both. Where only a small proportion of the company's
shares are traded on the market and the offer is followed by a compulsory buyout, the process
is known as a "squeeze-out".
General Meetings can take place only if there is a quorum. For Ordinary General Meetings, on
fi rst call there is a quorum if the shareholders present and represented hold at least 1/4 of
the voting rights. There is no quorum requirement on second call. For Extraordinary General
Meetings, the quorum corresponds to 1/3 of the voting rights on fi rst call and 1/4 on second
call. For Combined Meetings, the quorum requirements depend on whether the resolutions
are "ordinary" or "extraordinary".