Glossary

Shares in issue

All the shares of a company that could be traded on a stock exchange.

Rights issue

A rights issue is an issue of new shares to investors that gives existing shareholders preferential, transferable rights to buy the new shares. Only if they don’t want to take up their rights will other investors get a chance to join in. Rights issues are usually carried out at a share price that is lower […]

Secondary – issue or trading

In an investment context, secondary can refer to trade in bonds or shares that have already been issued as opposed to primary

Primary – issue or trading

In an investment context, “primary” usually refers to new issues – as opposed to secondary which refers to trading shares or bonds that have already been issued

Zero dividend preference shares

Zero dividend preference shares (ZDP) are Shares that will be redeemed at a fixed price at some defined point in the future (provided that sufficient assets are available). Their entitlement to the assets of the company rises in a straight line between their entitlement on issue and their redemption value. They are not entitled to […]

EPRA Earnings per share or EPRA EPS

EPRA Earnings per share or EPRA EPS – EPRA Earnings is a measure of the underlying operating performance of an investment property company excluding fair value gains, investment property disposals and limited other items that are not considered to be part of the core activity of an investment property company. EPRA earnings per share are […]

Net Asset Value per share (NAV per share)

Net Asset Value per share (NAV per share) – The Net assets divided by the number of shares in issue (often just abbreviated to net asset value or NAV). Read our guide to net asset values Click here to subscribe for free equity research on investment trusts, funds and listed companies.

Market capitalisation

The value of all the shares in issue of a company, calculated by multiplying the share price by the number of shares in issue.

Concert party

The Takeover Code has a concept called ‘acting in concert’. Persons acting in concert form a ‘concert party’. The technical definition (from the Takeover Panel’s website) is given below, but basically it means people or businesses that are acting together to control a company or block a takeover attempt. Acting in concert This definition has […]

American Depositary Receipt (ADR)

The term American depositary receipt (ADR) refers to a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—usually one share—of a foreign company’s stock. The ADR trades on U.S. stock markets as any domestic shares would. ADRs offer U.S. investors a way to purchase stock in overseas companies that would not otherwise be […]

pre-emption rights

Pre-emption rights give existing shareholders in a company the right to subscribe for their pro rata share of any new shares in that company issued for cash, providing them with protection against inappropriate dilution of their investments. Pre-emption rights are very important. The rules that govern how listed companies behave say that, unless you agree […]

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Glossary

Shares in issue