Accumulator fund
|
Fund that automatically reinvests the income from the securities in its portfolio.
 Top
|
| Avoir fiscal |
Dividend tax credit. Dividend payments on French shares entitle the shareholder to a tax credit equivalent to 50% of the dividends received.
Top |
Bond |
Interest-bearing debt security issued by a company or public-sector entity, and redeemable for a set amount at a pre-set date. There are different types of bonds, each with their own characteristics.
Top |
CAC 40 index |
Main stock index published by Euronext Paris SA. It is computed on a continual basis from the prices of 40 shares listed on the main market (Premier Marché) and selected from the one-hundred largest capitalisations. The CAC 40 is capitalisation-weighted. Since the 1980s, the index has been the main underlying for financial products such as futures and options.
Top |
| Capital gain |
Positive difference between an asset's selling price and its purchase price. (Called capital loss if the difference is negative)
Top |
| Collective investment scheme |
Savings vehicle based on a collectively held portfolio invested in securities and managed by a professional. In France, collective investment schemes can be incorporated (SICAVs) or unincorporated (FCPs).
Top |
| Company savings scheme |
Blanket term for collective investment scheme operated by companies for their employees and invested in securities. In France, there are three types of scheme, each identified by the initiating party and investor constituency: "individualised" (tailor-made for a specific company), "group individualised" (designed for a group of companies) and "multi-company" (open to all employees that have signed an eligible savings agreement).
Top |
| Coupon |
Interest rate paid to holders of debt securities. Also known as coupon interest.
Top |
Distributor fund |
Fund that periodically distributes the income from the securities in its portfolio. Also known as a distributing fund
Top |
| Dividend |
Income from shares or investment certificates, usually paid yearly. Dividends vary according to the profit made by the company.
Top |
ETF (Exange traded fund) ou trackers |
Fund that seeks to match the returns of an index. ETFs are traded on a regulated market. Also known as tracker funds or trackers.
Top |
Fast-track fund |
Collective investment scheme that does not require an AMF authorisation (simply a declaration) and that can waive certain risk-spreading rules. The minimum investment in a fast-track fund is €500,000.
Top |
| Feeder fund |
Fund investing 100% of its assets permanently in the shares/units of another fund, called the "master" fund
Top |
| Fonds communs de créance (FCC) |
Debt securitisation fund. In France, the legal vehicle for securitisation, i.e. aggregating debt obligations into a pool and then issuing securities (units) backed by the pool.
Top |
| Fund of funds |
Fund investing more than 5% of its assets in shares or units of other funds.
Top |
| Fund with income and accumulation shares |
Fund that issues two categories of units or shares: accumulation (dividends reinvested) and income (dividends distributed). Investors can switch between categories at any time.
Top |
| Funds reserved for 20 investors maximum |
Fund that is not permitted to advertise or otherwise solicit potential investors.
Top |
| Futures and options fund |
Unincorporated investment fund specialised in markets for derivative financial instruments.
Top |
Investment certificate |
Certificate of ownership similar to a share (qv). It bears dividends but does not entitle the holder to vote at general meetings.
Top |
MATIF
(Marché à terme international de France) |
Exchange specialised in interest-rate and commodity derivatives. Investors use the MATIF to hedge away unfavourable movements in financial asset prices. It can also be used for speculation and arbitrage.
Top |
| Minimum price increment |
Minimum authorised difference between two prices for the same security in a Euronext market (Premier marché, Second marché, Nouveau marché, Marché libre). With effect from 4 January 1999, price increments are expressed in euro or as a percentage. Also known as the tick.
Top |
MONEP
(Marché des options négociables de Paris) |
Exchange specialised in futures and options on equities and indices. Investors use the MONEP to hedge their positions against abnormal or unexpected price movements. It can also be used for speculation and arbitrage.
Top |
Net asset value |
Total market value of a collective investment scheme's portfolio, less liabilities.
Top |
Option |
The right, granted for a limited time period, to buy ("call option") or sell ("put option") a quantity of a product ("underlying") at a pre-set price and date.
Top |
PAR |
The price at which a company issues shares when it is formed. Par value is calculated by dividing the total value of the issue by the number of shares issued. A share's par value differs from its market value. Also known as face value or nominal value.
Top |
| Plan d'épargne en actions |
Tax-advantaged equity investment account for individual investors
Top |
Reference price |
Price used to establish the opening price for a security at the next trading session. The reference price is generally the last traded price or the last indicative price on the board.
Top |
Securities |
Article L.211-2 of France's Monetary and Financial Code defines securities as instruments issued by public or private entities, transferable by book-entry or physical delivery and carrying identical rights in each category of issuance. They afford direct or indirect access to a fraction of the capital of the issuing entity, or give a general claim on its assets. Units issued by a fonds commun de placement (qv) or a fonds commun de créance (qv) are also securities.
Top |
| Share |
Certificate evidencing ownership of a fraction of the capital of the company that issued it. Shares can yield dividends and entitle the holder to vote at general meetings. They may be listed on a stock exchange. Also known as a stock or an equity.
Top |
| Société civile de placement immobilier (SCPI) |
Indirect property investment vehicle. Organised as a company whose sole purpose is to purchase and manage rental property.
Top |
| SOFICA |
Film financing company. SOFICAs offer tax breaks to investors.
Top |
SOFIPECHE |
Company set up to finance non-industrial fishing. SOFIPECHEs offer tax breaks to investors.
Top |
| Stock index |
Statistical composite based on the average prices of a representative sample of shares. This average reflects the general trend in a market. Euronext Paris SA computes several indices, including the SBF 120 and the CAC 40.
Top |
| Sub-fund |
A component of a collective investment scheme. Some schemes may have one or more sub-funds if their articles of incorporation or regulations permit. A separate category of units or shares is issued in respect of the assets allocated to each sub-fund (see umbrella fund).
Top |
Tracker |
see exchange traded fund.
Top |
| Trade confirmation slip |
Document sent by a financial intermediary to its client confirming that a buy or sell transaction has been executed. The confirmation slip contains information about the type of order, the amount, the execution date and any associated charges (brokerage fees, tax, etc.).
Top |
Umbrella fund |
Legal entity with one or more sub-funds (qv).
Top |
| Undertaking for Collective Investment in Transferable Securities (UCITS) |
Collective investment scheme originating in a European Union country and authorised for marketing in all other Member States. Also known as a harmonised UCITS.
Top |
Venture capital funds / innovation funds |
Unincorporated funds invested mainly in the shares of unlisted companies .
Top |
