ACQUISITION is a process in which two or more companies merge in one whole. The acquired company ceases to have business continuity. Prior to the acquisition itself, an acquisition offer is delivered.
SHARE-SUBSCRIPTION AGENT is a bank or a company which, for a certain commission, executes matters of subscribing the shares and listing them in the stock market.
BALANCE SHEET is one of the basic accounting reports. It is a quantitative summary of a company's financial condition at a specific point in time. It is also called the report on the financial position.
INCOME STATEMENT, also called profit and loss statement, is an accounting of sales, expenses, and net profit for a given period (monthly, quarterly and annual report).
BLUE CHIPS are shares quoted highly on a certain stock market.
BROKER is an English term for an individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission. Brokers trade securities, goods, foreign currencies, securities’ hybrids and derivatives, and term instruments. Broker authorized for making deals with effects on the stock market is called a stock broker.
GROSS INCOME is pre-tax net sales minus cost of sales. It is also called gross profit.
STOCK EXCHANGE is an organized stock market. On our stock markets government and corporative bonds, shares and commercial records are traded. The trading must be according to the rules of the stock market, as well as to the state regulative. The price of shares and bonds is formed based on principles of offer and demand. The trading takes part exclusively between members of the stock exchange. The most important world stock exchanges are those in New York, London and Frankfurt.
BLACK KNIGHT is a company which makes a hostile takeover bid on a target company. On the other hand, a white knight is a potential acquirer who is sought out by a target company's management to take over the company to avoid a hostile takeover by the undesirable black knight.
AUDITOR’S REPORT DATE is one of the basic elements of the report. It indicates the fact that the auditor has taken into consideration all the events and actions which have or could have an influence on the reality and objectivity of the financial reports, and which have emerged up to the stated date, independently of the date stated in the financial reports.
DEPOSIT is an amount of money put in the bank with or without a special purpose. The bank makes a commitment to return the money with certain interests and under determined conditions.
STOCK SPLIT/SHARE SPLIT is an increase in the number of outstanding shares of a company's stock, such that proportionate equity of each shareholder remains the same. This requires approval from the board of directors and shareholders. A corporation whose stock is performing well may choose to split its shares, distributing additional shares to existing shareholders. The most common stock split is two-for-one, in which each share becomes two shares. The price per share immediately adjusts to reflect the stock split, since buyers and sellers of the stock all know about the stock split. Some companies decide to split their stock if the price of the stock rises significantly and is perceived to be too expensive for small investors to afford. It is also called split.
STOCK/SHARE is an instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits.
STOCKS SOLD BY SUBSCRIPTION are stocks fully paid for.
SHARE/STOCK CAPITAL, SHAREHOLDRES’ EQUITY, EQUITY CAPITAL is accountably presented value of the total number of main shares. It is a proper or permanent source of total assets of the company towards its owners, or shareholders.
COMPANY LIMITED BY SHARES, JOINT STOCK COMPANY, STOCK CORPORATION, PUBLIC LIMITED COMPANY is a company where members participate in the subscribed capital divided on shares by investing in it, but the shareholders are not personably liable for the company’s responsibilities.
DIVIDEND is a taxable payment declared by a company's board of directors and given to its shareholders or creditors out of the company's current or retained earnings, in the form of cash or stock.
CAPITAL GROWTH is an increase in the market price of an asset, also called capital appreciation.
E.B.I.T.D.A. stands for Earnings before Interest, Taxes, Depreciation and Amortization.
AGM, which stands for Annual General Meeting, is a meeting where decisions are made on routine questions such as choosing the director, approving the report, paying the dividend. Every stock corporation has the obligation to summon it once a year.
EGM, which stands for Extraordinary General Meeting, is a meeting of the assembly of the shareholders summoned in extraordinary circumstances, fox example on the occasion of takeovers or acquisitions.
IPO, which stands for Initial Public Offer, is the first sale of shares by a company to the public.
QUOTATION, QUOTE, ADMISSION, LISTING, is an expression usually used for two numbers – the highest price (bid) that an investor is willing to pay for a security, and the lowest price (ask) by which the seller is willing to sell the security.
NET PROFIT, often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time (3 months, 6 months, usually one year). It is also called net income or net earnings.
BONDS are debt instruments issued for a period of more than one year with the purpose of raising capital by borrowing. States, cities, corporations, and many other types of institutions sell bonds. Generally, a bond is a promise to repay the principal along with interest (coupons) on a specified date (maturity).
INCOME is the total influx of funds into a company.
PROCURATOR is, by the Law on corporations, a person who has been given the broadest commercial authorization which has the volume of authorization established by law. But, no matter the volume of authorization, a procurator is not a legal representative of the corporation. A procurator can be any person who is of age and capable in business, who can be either a functionary or an employee of the corporation. A procurator cannot transfer his authorization to someone else, nor can he give authorization for concluding business to other persons.
STOCK/ORIGINAL CAPITAL is the initial capital of the corporation which has to be expressed in Croatian currency. The lowest amount of original capital is established by law. The amount must be expressed by a whole number multiple of the number 100. |
