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Glossary

People often ask about specific corporate finance terms and abbreviations that are common in our industry. We always try to use clear and understandable language. However, some terms may need some definition.

With this glossary IPONTIX hopes to contribute to a better understanding of typical corporate finance terminology.

 

Ad-hoc Disclosure

Announcement of stock corporations, that have an effect on stock prices, in accordance with section 15 of the WpHG, to assure an equal information provision of all shareholders and market participants. The company has to announce the news immediately, if it has an impact on the financial and assets position of a company.

Adjustment of Stock Prices

Consideration of value-changing effects, e.g. stock split or dividend discount, by comparing stock prices over time.

ADR

A negotiable certificate representing a specified number of shares in a foreign stock that is traded on a U.S. exchange.

American Depositary Receipts (ADRs)

Issued by US depositary banks and representing a fraction of shares of non-US companies traded on US exchanges. ADRs facilitate an easier, cheaper and faster trading of foreign stocks at US public exchanges.

American Depository Receipts:

A negotiable certificate representing a specified number of shares in a foreign stock that is traded on a U.S. exchange.

Angel Investor

A person who invests in a business venture, providing capital, know-how and a network for start-up or expansion. Often, these individual investors are experienced entrepreneurs or former senior manager.

Asset Deal

Acquisition of a company by purchasing the individual assets of the company (see Share Deal).

Asset-Backed Securities

Special form of securitised future cash flows from pecuniary claims in form of tradable securities. These securities are based on the re-engineering and pooling of certain financial assets (Securitisation).

Auction

Standard M&A approach and process for trade sales of companies. In a limited auction a controlled group (Long List) of financial investors and strategic buyers is invited at the same time to make an offer to buy the company.