ADR American Depositary Receipt. A receipt that is traded at US American stock exchanges instead of shares of foreign-based companies.
Aktiengesellschaft (AG) (according to § 1 of the German Company Law) A trading company with a separate legal personality (legal entity) and an impersonal
form of business organisation (limited partnership). The AG is only liable with its assets. The share capital of an AG is divided into shares which are normally held by several investors. Shareholdings of more than 5% of the share capital are called fixed shareholdings, whereas shareholdings of less than 5% are classified as widespread shareholdings. The organs of an AG are: the Managing Board, the Supervisory Board and the Shareholders’ Meeting.
Articles of association Legal basis for a public limited company that shows the company and its headquarters, the objects of the company, the amount of the share capital and other basic regulations (e.g. with respect to the Managing Board and the Supervisory Board).
Balance sheet rate Shareholders’ equity / number of shares. The balance sheet rate shows the value of a share in the share capital, taking into consideration other shareholders’ equity (revenue reserves, capital reserves, profit carried forward, loss carried forward).
Balance sheet
A comparison of assets and liabilities of a company at a set date. The balance sheet shows the source of funds on the liabilities side and the use of funds on the assets side. With respect to the assets, a difference is made between fixed assets and current assets. The capital is divided into shareholders’ equity and outside capital. The ratio assets = liabilities is applicable, the so-called balance sheet equation. Together with the profit and loss account as well as the cash flow statement, the balance sheet constitutes an important element of the annual accounts.
Bear market Continuously dropping share prices. Opposite: bull market.
Bearer shares Bearer shares are issued without indicating the name of the owner in the certificate. The public limited company guarantees any benefits only to the bearer and not to a certain person (as is the case with registered shares).
Blue chip
An expression used by the stock exchange to describe the share of a large company of high international reputation known for the quality of its products or services and its ability to operate profitably.
Brokerage The fee of a stockbroker for the arrangement of a securities transaction.
Bull market A strong, usually continuous increase in share prices. Opposite: bear market.
Capital yield taxSpecific type of income tax that is deducted immediately at the payment of the dividend as a pre-payment on the individual income or corporation tax of the shareholder. (For exceptions, see tax credit balance).
Call option
Buying option: the right to buy shares and securities at a set price (purchase price) at a fixed point of time.
Cash flow
The difference between all incoming and outgoing payments within a certain period. The cash flow reflects the internal financial strength of a company. The annual cash flow at HeidelbergCement amounts to approximately 1,000 million Euro.
CUSIP number
The securities identification number in the USA.