Paris Stock Exchange index based on a basket of 40 shares chosen according to their importance and how well they represent the French market.
Call
Call options entitling the purchaser to buy the (so-called underlying) securities at a specific price and on a set date. Taking up the option to buy boils down to expecting the security's price to rise in due course (paying a premium today that entitles the purchasers to buy later on at a pre-determined price).
Capital
In bookkeeping terms, the concept of capital applies to the level of contributions made by the partners.
Capital increase
Financial operation where a company boosts its financial resources by seeking funds from its shareholders or outside shareholders. Capital increase techniques are cash contributions, contributions in kind or capitalisation of reserves.
Capital increase by capitalisation
Allocating free shares or increasing the normal value of shares by capitalisation of reserves. Whatever system is decided on, the capital increase is theoretically neutral for the shareholder.
Capital increase by remuneration
This operation involves issuing securities in exchanges of assets brought in (property, company shares). This has to be approved by an extraordinary general meeting.
Charge for safe custody
Fees charged by an intermediary for keeping the trading account.
Clearing house
Company through which all orders on a futures market pass in transit. Its role is to improve market efficiency, so it is responsible for recording and terminating operations.
Closing price
Final price for a security when the trading session ends. Reference price reproduced by the financial newspapers.
Collect
Reference to an investor who buys large quantities of a company's securities on the market. The investor is generally unknown to start with. An increase in security volumes is often noted.
Concentration
Consolidation of companies via mergers, takeovers, equity participation, with the result that there are few key players on a given market. In addition to more efficient cost managment, concentrations allow the remaining participants to have larger market shares.
Convertible bond
Bond that may be converted into a share at a given time, according to predetermined procedures.
Coupon
Remuneration paid every year to holders of shares and bonds. For shareholders, this represents a share in the company profits.
Crash
Sharp fall in prices across the whole market. When a crash occurs on one of the major exchanges, the effect is felt immediately on all of the others to varying degrees. The most famous one was the stock market crash of 1929.
Current assets
All a company's resources that are not intended to be retained on a lasting basis. Current assets include stocks, accounts receivable and available funds (bank accounts, investments, …).
Cyclical
Characteristic of a sector, a market or a security subject to the ups and downs of the overall economic situation such that its development is irregular.
Cyclical value
Company that has established a market position depending on an economic activity (construction, capital goods, chemicals, ...) and achieves results that vary from one year to the next.
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