Hedging Securing of a portfolio or transaction against price-related risks, normally exercised by means of time bargain contracts or derivatives, such as future swaps or options.
IASInternational Accounting Standards. The regulations specified by the IAS are characterised by common law and case law, as compared to the German Commercial Law (HGB) that only acts in accordance with codified law. Annual accounts of companies that have been established according to international standards can be compared with each other. Amongst others, this is of benefit for the global capital and financial markets. A major difference between the IAS and HGB lies in the reduction of the voting rights according to IAS. Accounts made according to IAS include at least the following elements:
- Profit and loss account
- Balance sheet
- Cash flow statement
- Documentation of success-neutral changes in the shareholders' equity
- Appendices
IASC International Accounting Standard Committee. IAS organisation (1973).
IPO Initial Public Offering. An expression to describe the public first issue of shares of young and medium-sized companies.
Insider Expression to describe people who, due to their professional position, have access to important non-public information. In accordance with ยง 12-14 of the German Insider Trading Law, it is forbidden to exploit this information in security trading for one's own benefit before it is publicly disclosed.
Investor Relations The voluntary function of companies quoted on the stock exchange providing financial market communication exceeding the legally specified minimum requirements. The aim of Investor Relations is to achieve a fair rating in the capital market at a low volatility.
ListingIntroduction / quotation of a share on a stock exchange. (see:
Introduction on a stock exchange).
Managing Board The management and representative organ (executive management) of a public limited company. it has sole responsibility. The members of the Managing Board are appointed by the Supervisory Board. The reports of the Managing Board and the Supervisory Board are accepted by the Shareholders' Meeting.
Mid caps Shares of a company with a medium market capitalisation. Most of the German mid caps are belong to in the MDAX.