Please click the terms to see the explanation.Source: Deutsche Börse AG
Warrants that are at the money have a high gamma value because their delta value is particularly elastic.
Gaps occur in particular when trading in a stock is interrupted, in which case the valuation of the stock can change very rapidly. Longer interruptions can result in significant jumps in price, because this gives all market participants an opportunity to process the most recent information and reassess the value of the stock. A gap can also refer to the difference in price between the opening price and the trading range of the previous day (opening gap).
Technical analysts use gaps as indicators of trends. There are several different types of gaps, including common gap, breakout gap, runaway gap and exhaustion gap.
Admission to General Standard does not require any action on the issuers' part; it occurs automatically with the listing in either the Official or Regulated Market.
The previous subdivision of the Official and Regulated Markets no longer
exists. The admission and follow-up requirements for the Regulated Market are
now those previously valid for the Official Market. Securities that were
entered before November 1, 2007, are now listed only on the Regulated Market.
The admission and follow-up requirements for the Regulated Market are those
previously valid only for the Official Market. The requirements regarding
company age now apply for the Regulated Market.
Exchange-traded securities of the Federal Government have a maturity of ten to
30 years. The issue prices vary and feature a fixed nominal yield. Redemption
takes place at the nominal value. It is stipulated by law that German Bunds
are admitted to trading without the need to publish a prospectus.
The German Stock Corporation Act (Aktiengesetz), enacted on 6 September 1965, regulates in particular the founding of a company, the legal relationships between the company and its partners or shareholders, capital, changes to the capital stock, and the dissolution of the company.
Global depository receipts (GDRs), which were developed on the basis of
American depositary receipts (ADRs), securitize the ownership in shares. A GDR
can relate to one or several shares, or a mere proportion of a share. GDRs are
traded instead of the original shares on exchanges worldwide and are
denominated in euro.
Global securities facilitate the safe custody and administration of shares. One disadvantage, however, is that shares held as in the form of a global security are less fungible than individual shares (see fungibility).
Global securities cannot be traded on the stock market because they are not deliverable. For this reason, they are used primarily by large shareholders who wish to hold their shares over the long term. In Germany, global shares otherwise serve only as a temporary document until the final share certificates are printed, e.g., following a capital increase or new issue, so that trading in these shares, as well as price quotations, can continue without interruption.
Synonyms: global share, global certificate, multishare certificate
Going Public is usually considered to be a synonym for initial public offering (IPO).
In the original sense, Going Public refers to the change in a company's legal form when it is converted from private ownership – e.g., from a partnership, limited liability company – to a stock corporation, thereby giving the public the opportunity to invest in it.
In the meantime, however, Going Public has come to be used in a broader sense, in which it is understood to mean the initial listing of a company's shares on the stock exchange, also called IPO. An IPO is usually planned and carried out in conjunction with an underwriting bank, or in the case of large new issues, a syndicate. The bookbuilding procedure has become the accepted method of determining the issuing price of a stock.
The primary advantages of Going Public are that it enables the company to raise additional equity capital and gives the original venture capitalists the opportunity to exit. Moreover, it is a form of publicity for the company, and serves to distribute the equity capital among a broader shareholder base. The best time for a company to go public is during a bull market, when it is more likely that all new shares will be bought, as this will lower the cost of capital.
Often, companies that are planning an IPO over the medium term will issue warrant-linked bonds and convertible bonds, which entitle the owner to subscribe to shares issued as part of the future IPO. If the IPO does not take place or is postponed, the bond is usually bought back by the issuer at above par.
Securities that have not yet been officially issued are traded in the gray market. The disadvantages to trading in the gray market are a lack of market transparency and a low degree of liquidity.
Antonym: organized capital market/exchange
Green shoe is an option to issue additional shares if, in conjunction with a
new placement, demand exceeds supply: if a new issue is oversubscribed, the
green shoe is used to satisfy excess demand or to stabilize the trading price.
The issuing company gives the lead bank an option for more shares under the
original terms. In this way, the bank can ultimately issue more shares than
originally planned. Investors who have subscribed for the shares get the
additional shares at the issue price.
The issuer and syndicate banks determine the green shoe amount before the IPO.
The number of securities in the reserve is noted in the issue prospectus. The
additional shares generally come from the original owners. They can, however,
be financed by an increase in capital.
The term comes from the US company Green Shoe Manufacturing, which was the
first to utilize the method.
Synonym: oversubscription option
Dividend amount prior to the deduction of corporate tax.
Growth markets can be entire economies (e.g. emerging markets) or individual sectors (such as telecommunication, technology, etc.). They offer investors an above-average rate of return as well as excellent growth prospects.
Investors who want to play it safe, can bet on guarantee certificates. These products ensure the repayment of the invested capital and allow the investor to partake in price gains. However, the investor buys this security at the cost of lower profits. In addition, the capital guarantee is only valid at the end of the maturity. If the investor wants to have access to placed money before that, he could suffer losses.
Details about currently traded types of investment products .