FINANCIAL GLOSSARY

 

  • Share
    Title of ownership representing a fraction of a company's capital, to which are attached the right to vote at general meetings and the right to receive a part of the profit of the company in the form of a dividend.
     
  • Net earnings per share
    A key market analysis metric, arrived at by dividing a company's net profit by the number of shares constituting the capital.
     
  • Stock market capitalization
    The value attributed by the stock market to a company at a given time, arrived at by multiplying the share price by the number of shares constituting a company’s capital.
     
  • ISIN

    The code used to identify a stock market asset.
    The ISIN of the SEB share is FR 0000 121709.

    Three other codes are managed for registered SEB shares so as to identify loyalty bonus rights: the ISIN FR0000054033, for all shares held for at least two financial years giving rights to dividends, and 2 other codes changing from one year to the next for shares registered in Y-1 (the previous year) and giving rise to loyalty bonus rights in 2 years or shares registered in Y-2 (2 years ago) giving rise to loyalty bonus rights in 1 year.

  • Continuous quotation
    With continuous quotation, a share price can be determined by comparing demand (buy) and supply (sell) throughout the trading day (from 9 am to 5:35 pm). It differs from fixing quotation, which is used for less active shares, for which buy and sell orders are compared once or twice a day only.
     
  • Brokerage
    The fees charged by a financial intermediary trading share buys or sells on the market. The fees are generally calculated as a percentage of the gross amount of the transaction.
     
  • Coupon detachment date
    The date on which a shareholder must hold shares to have the right to receive a dividend and the loyalty bonus (3 trading days before the payment date).
     
  • Dividend
    A share of the profits distributed by a company to its shareholders.
     
  • Loyalty dividend
    See “Loyalty bonus”.
     
  • Euroclear France SA
    The French depositary responsible for managing transactions of listed transferable securities and transferring them among affiliates (authorized financial intermediaries and security-issuing entities).
     
  • Stock market index
    A quantitative indicator established on the basis of the average prices of a basket of representative stocks reflecting the general trend of the market.
     
  • Paris Bourse SBF SA
    A company that calculates several stock market indexes, including:
    - the CAC 40, comprising 40 of the most active stocks on the market; 
    - the SBF 120, which in addition to CAC 40 stocks comprises 80 supplementary stocks, including SEB S.A.
    These two main indexes are calculated continuously throughout the trading day.
     
  •  Euronext
    The world’s number-one stock exchange, arising from the merger on February 15, 2011 of Nyse Euronext for 40% (itself arising from the merger of the Paris, New York, Amsterdam and Brussels stock exchanges) and Deutsche Börse for 60% (Frankfurt).

  • IAS Index
    Created in late 1999, this index includes some 30 companies meeting the following criteria:
    - the company is listed and belongs to either the CAC 40, SBF 120 or SBF 250 indexes; 
    - at least a quarter of the company’s employees are shareholders; 
    - a minimum 3% of the capital is owned by shareholder employees.
    SEB S.A. is listed on the IAS.

  • Equity savings scheme
    An equity savings scheme may be opened by any taxpayer fiscally domiciled in France. Holders of this long-term savings product qualify for tax advantages if they make no withdrawals for a period of at least 5 years.

  • Price earning ratio (PER)
    The PER is the ratio of a company's stock price to the company's earnings per share. It is used to determine the valuation of a share through comparisons of companies in the same activity sector. The PER of a share is higher when the stock market expects strong growth in the profits of the company.

  • Loyalty bonus
    Loyalty bonuses are paid for each share registered before December 31 in a year and held in this form for 2 consecutive financial years in the name of the same shareholder, with a legal cap of 0.5% of the total capital. According to law, a loyalty bonus may not exceed 10% of the ordinary dividend.

  • Yield
    The ratio of the gross dividend per share and the share price.

  • Deferred settlement service (DSS)
    The DSS replaces monthly payments, discontinued in September 2000. With the DSS, the delivery and payment of shares is made on the settlement date (i.e. the fifth trading day before the end of the calendar month) and shareholders may request that a position be deferred to the following month. This service is subject to an additional fee. The SEB share qualifies for the DSS.

  • Identifiable bearer shares (IBSs)
    Listed companies may obtain from Euroclear Paris the list of their bearer shareholders (IBS file) at a given date. The list informs the company of its shareholder structure and is used notably to calculate the breakdown of share capital and voting rights.