Our Glossary
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| Saving | Regular saving money on a current or savings account, where it is bearing interest at a rate known in advance. |
| Scoring | Comparison of investments (e.g., mutual funds according to various criteria, such as performance, volatility, volume of funds, amount of fees, etc.) |
| Sector Funds | Mutual funds, whose portfolio consists of securities of a particular industry. In this case, diversification of risk is lower but, on the other hand, the investments in these funds allow participation in the growth of promising sectors. |
| Securities Analysis | Analysis and valuation of securities (shares, bonds, etc.) precedes the decision on a potential investment in securities. During the securities analysis, the economic situation of the issuer is examined. The main source of information about the issuer is the financial analysis. All the information acquired must be subsequently properly interpreted and assessed. The security is valued based on the analysis and this ascertained “fair value” is compared with the market rate. The entire securities analysis can be summarized as follows: • Analysis (processing information that may affect the investment positively or negatively) • Forecast (estimate of the future yields trend based on the analysis of historical data and information submitted on the current situation and possible development) • Rating (the forecast result is confronted with the external environment, i.e. the situation in the capital markets, the business cycle, etc.) |
| Securities Dealer | A joint-stock company authorised to trade in securities that can buy and sell securities for customers. Depending on the extent of the authorisation, it may also perform other related activities. |
| Security | A security represents a legal claim of its owner in relation to the obliged subject (usually the issuer). A security bears the legal claim, which is embodied in it, and is essentially irreplaceable for its establishment, existence, transfer and termination. Securities are primarily: shares, interim certificates, share certificates, debentures, bonds, stock warrants, bills of exchange, cheques, investment coupons, coupons, traveller’s cheques, bills of lading and dock warrants. Securities are also instruments that are declared as securities by special laws. There are three forms of securities: bearer securities and securities registered by name or order; and two types of securities – materialised and dematerialised. |
| Security Credibility | Expression of the quality of a security. It is closely related to the creditworthiness of the issuer. The more credible, stronger and stable the issuer, the higher the credibility of the securities issued by it. |
| Security Prospectus | A document by which the issuer of a security to be admitted to trading on a public market or publicly offered, gives the investors the basic information about himself, his business, financial condition and information on the issued security. There may be even a briefer prospectus that is simpler and is used for securities which should be publicly offered, but which were not accepted for trading on the public market. |
| Selling Price | The price at which the share certificates are issued. Selling price consists of the calculated value of the share (rate) and the entry fee determined in the fund’s statute. |
| Settlement Risk | The risk of loss from unsettled transactions. |