GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). A company is assigned to a single GICS sub industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI.
Revenues are a significant factor in defining principal business activity; however, earnings analysis and market perception are also important criteria for classification.
A claim made by one party for an error to be fixed by the party responsible.
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
The number allocated by an Issuer to identify the number of securities that remain in a certificated holding after a transfer of securities. Referred to as Marking Number within the EIS.
This is the unique identification number given to Broker Sponsored Investors in relation to their CHESS holdings. The Holder Identification Number (HIN) covers the Investor’s holdings in one or more listed companies. The HIN should be quoted when orders are placed, as well as in all correspondence with brokers and registries.
Investors may deal with more than one broker and will be given a separate HIN.
The HIN number has the following components:
For example, X0000012345.
Units held in a particular Security by an Investor.
A change to the holding balance of a CHESS holding effected by a message transmitted by an Issuer to CHESS.
A company that owns shares in a "subsidiary company". A holding company may or may not run part of the business of a subsidiary company and is the "parent company" of a group of companies.
The subsidiary company is either a wholly owned subsidiary, where 100% of the shares are held by the holding company, or a partly owned subsidiary, where more than 50% but less than 100% of the shares are held by the holding company and is controlled by a board of directors.
Other companies in which significant holdings are held and where some influence is exerted by the holding company are called "associated companies".
A confirmation of an Investor's holding details by security type, as at a specific past date. Issued when a request is received for holding information as at a specific non-current date from an Investor or their representative.
A holding lock is a facility that prevents securities from being deducted from, or entered into, a Holding pursuant to a Transfer or Conversion.
An intention by one company to take over another, where the target company’s directors are vehemently opposed to it.
An imputation credit is a credit to a person owning shares for the tax that has already been paid by the issuing company on their dividends. These are also known as franking credits.
The inability of a person or company to settle debts when they become payable.
Owning an instalment warrant is similar to having a share on lay-by only better. This is simply because instalment warrants enable investors to take advantage of any dividends or franking credits associated with a share without having to pay for the share in full. Because the instalment warrant costs a fraction of the price of the share and investors are the beneficial owner of the share for the life of the warrant, yields are greatly enhanced.
Instalment warrants differ from classic equity trading calls in that they usually are longer dated. The maturities of instalment warrants usually range from 12 to 18 months but can extend up to 10 years.
Their exercise style can be either American or European. In general, the aim of the purchaser of an investment warrant is to own the underlying share at the end of the warrant ’s term, or at least participate in the return on the underlying over the long-term.
The dividend declared before annual earnings are established. Some companies pay two dividends per year, the interim dividend and the final dividend. The interim dividend is usually the smaller of the two.
Share capital or Issued capital refers to portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or equivalent item of capital value. For example, a company can set aside share capital to exchange for computer servers instead of directly purchasing the servers from existing equity.
This is the number of authorised shares that are actually “issued” out to the shareholders.
A company or public sector entity which has shares, bonds or other security listed on a stock exchange.
An issuer sponsored holding is one that is sponsored by the issuer and not by a CHESS participant. Statements are sent to securityholders at the end of a month in which changes haved occur to the holding.