CCM Equity Securities key terms

A unit of ownership in a company that typically carries voting rights and a residual claim on profits and assets after all debts and preferred claims are paid.

A class of share that usually pays a fixed dividend before ordinary shareholders and ranks ahead of them for repayment of capital, often with limited or no voting rights.

A negotiable certificate issued by a bank that represents shares in a foreign company, allowing local investors to trade and hold those shares in their home market and currency.

A pooled fund whose shares trade on an exchange like individual stocks, typically tracking an index, sector or commodity and usually offering low costs and intraday liquidity.

A listed company that owns and operates income-producing property and must distribute most of its taxable income to shareholders, giving investors exposure to real estate.

A firm that continuously quotes bid and ask prices for a security, providing liquidity and standing ready to buy or sell within published size limits.

A large organisation such as a pension fund, insurer, asset manager or bank that invests substantial sums, often trading in size and influencing corporate governance.

The proportion of a company's shares available for public trading, excluding holdings by insiders, founders, governments or strategic long-term owners.

The total market value of a company's listed shares, calculated by multiplying the share price by the number of shares outstanding.

The first sale of shares by a private company to public investors, raising capital and listing the company's shares on a regulated exchange.

An offer of new shares to existing shareholders in proportion to their holdings, usually at a discount, so they can avoid dilution by subscribing.

A shareholder's right to buy new shares before they are offered to outsiders, typically in proportion to the existing stake, protecting against dilution.

A formal disclosure document issued to investors in a public offering that describes the issuer, the securities, the risks and the financial position.

A process in which an underwriter gathers investor indications of demand and price to set the final offer price and allocate shares in an offering.

An arrangement in which a bank or syndicate commits to buy unsold shares in an offering, assuming price risk in return for a fee.

A distribution of part of a company's profits to shareholders, usually paid in cash but sometimes in shares, and declared by the board.

The date from which a buyer of shares no longer has the right to receive the next declared dividend, typically set one business day before the record date.

A company's purchase of its own shares in the market or via tender, reducing shares outstanding and commonly returning cash to shareholders.

An instruction to buy or sell a security at a specified price or better, giving price control but not guaranteeing execution.

A duty to take all sufficient steps to obtain the best possible result for clients when executing orders, considering price, cost, speed, likelihood and size.

An entity that interposes itself between trade counterparties, becoming buyer to every seller and seller to every buyer, and manages counterparty risk through novation and margin.

The post-trade process of confirming, netting and managing obligations between trading parties before settlement, often performed by a central counterparty.

The transfer of securities and corresponding payment between parties to complete a trade, finalising ownership and cash obligations on the agreed settlement date.

A settlement mechanism that links the transfer of securities to the transfer of cash so that delivery occurs only if payment occurs, reducing principal risk.

A financial institution that safekeeps client securities, processes corporate actions, collects income and settles trades on behalf of institutional investors.

Selling securities the seller does not own, usually by borrowing them, hoping to buy them back later at a lower price and profit from the decline.

A company's net profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares outstanding, showing profit earned per share.

The share price divided by earnings per share, indicating how much investors pay for each unit of current earnings and often used to compare valuation.

Annual dividend per share divided by the share price, showing the income return an investor receives from dividends at the current price.

The share price divided by book value per share, comparing market valuation with accounting net assets and often used for banks and asset-heavy firms.

Net profit divided by shareholders' equity, measuring how efficiently a company generates profit from the capital invested by shareholders.

A valuation method that estimates an asset's value by projecting future cash flows and discounting them to present value using an appropriate discount rate.

A measure of a share's sensitivity to movements in the overall market, used in the capital asset pricing model to estimate systematic risk and required return.

Trading or disclosing inside information about a company to gain an unfair advantage, which is prohibited as market abuse in most jurisdictions.

Conduct that gives false or misleading signals about the supply, demand or price of securities, or distorts the market, and is prohibited.

An information barrier within a financial firm that separates departments such as corporate finance and trading to prevent conflicts of interest and misuse of confidential information.

The process of identifying clients and verifying their identity, beneficial ownership and risk profile before providing services, supporting anti-money-laundering compliance.

A legal obligation to act in the best interests of a client, putting the client's interests ahead of the firm's own and avoiding conflicts where possible.

The requirement to recommend or execute investments that match a client's objectives, risk tolerance, financial situation and knowledge, based on collected information.