Bearer shares

There are two ways to hold shares in a French listed company, either through Bearer Shares or through Registered Shares (see below). Shares are categorised as "bearer shares" when the name of the owner is not disclosed to the issuing company. However, these shares are not anonymous since they appear in the account managed by the financial intermediary. In France, most shares traded on the Stock Exchange belong to this category.

Beige book

A commonly used name for the Fed report called the Summary of Commentary on Current Economic Conditions by Federal Reserve District. This report is published eight times per year.


An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.


The process by which an underwriter attempts to determine at what price to offer an initial public offering based on demand from institutional investors.

Break-even point 

In general, the point at which gains equal losses.

Bridge loan

Short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow.

Buy back

The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.



Consumer price index.



A ratio or percentage by which monetary quantities are reduced to eliminate the effect of higher prices.



Earnings before interest & tax. An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows: Ebit=revue-operating expenses.


Earnings before interest, tax and amortisation.


An indicator of a company's financial performance which is calculated as follows:

EBITDA= Revenue-Expenses (excluding tax, interest, depreciation and amortization).


European central bank. 

Bénéfice divisé par le nombre de titres composant le capital.


Earnings per share.



Free cash flow: a measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt. FCF is calculated as: Net income+amortization/depreciation - changes in working capital - capital expenditures=free cash flow It can also be calculated by taking operating cash flow and subtracting capital expenditures.

Federal Open Market Committee

The branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the Board of Governors, which has seven members, and five reserve bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other reserve banks rotate in their service of one-year terms.



Gros domestic product.


An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company is purchased by another company.



The rate of acceleration of a security's price or volume.


Operating margin

A ratio used to measure a company's pricing strategy and operating efficicency. Calculated as: Operating margin= operating income/net sales Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Also known as "operating profit margin" or "net profit margin".

Operating profit

The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes. Also known as "earnings before interest and tax" (EBIT). Calculated as: Operating Profit=Operating revenue-operating Expenses



Personal consumption expenditure : A measure of price changes in consumer goods and services. Personal consumption expenditures consist of the actual and imputed expenditures of households; the measure includes data pertaining to durables, non-durables and services. It is essentially a measure of goods and services targeted toward individuals and consumed by individuals.


Registered shares

There are two ways to hold shares in a French listed company, either through Bearer Shares (see above) or through Registered Shares. Shares are categorised as "registered shares" when the name of the shareholder appears in the share register of the company. The use of registered shares makes communication between the company and its registered shareholders easier. This method may take two forms:

  • shares are "managed registered shares" when the management of the securities account is entrusted to a financial intermediary. The service is billed by the financial intermediary.
  • shares are "pure registered shares" when they are entered directly and only in the share register of the issuing company. The issuing company is in charge of the administrative management of the shares and no custodian fees are paid. In the case of Sopra, CM-CIC Securities is in charge of managing registered shares. This formula is advantageous to persons who do not intend to make frequent trades in the Sopra shares they hold.

Real wage

Real earnings. Real wages express the purchasing power of the dollar income earned by individuals.


Write down

A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues.