Underwriting - the process of attraction of investors on behalf of issuers and allotment of securities in the market issued by issuers.
Broker - Professional financial company that acts as intermediary between a buyer and a seller in securities markets. Broker also provides financial consulting service to investors and issuers.
Dividend - Amount paid to shareholders from profits of a company.
Delisting - Removal of securities from listing.
Prospectus - A document that provides details about a company and a new offering of securities
Issuance - release of new securities to market
Issuer - A legal entity that sells equity and debt securities to investors for the purpose of raising capital
Bond - a security that enables to acquire a specified amount of interest for a specified length of time, and to repay the loan on the expiration date as well as the interests on quarterly, semi-quarterly or annual basis.
Initial Public Offering - a company’s first offering of stock to the public or offering for open sale in the primary market.
Primary Market - first sale of newly released securities by an issuer
Investment Memorandum - a marketing document that is presented to investors. An investment memorandum provides details on management awards, operations and financial situation, use of proceeds, issuer’s dividend policy and capitalization and other information.
Capital Market - a market where bonds, shares and other securities are traded.
Clearing and Settlement - the process of calculating the mutual obligations of market participants (data collection, inspection, reconciling, preparation of accounting documents), the completion of a transaction and mutual execution of obligations.
Coupon - Interest rate paid on a bond, expressed as a percentage of the face value. Interest payments are usually quarterly, semi-annual and annual. It is expressed as a percentage of the face value of a bond. For example, owner of a 1,000 AZN bond with an annual coupon rate of 9% receives 45 AZN every six months.
Liquidity - Situation characterized by high activity of a market, trade and high number of buyers and sellers of various financial tools.
Listing - sale of securities in a regulated market that comply with conditions and requirements of a stock exchange
Registry - State registry of securities is carried out by the State Committee for Securities and the registry of security owners is carried out by the National Depository Center.
Stock - A type of security that signifies ownership in a company and represents a claim on part of the company’s assets and earnings.
Secondary Market - A market where securities are traded by market participants after their allotment.
Allotment - – purchase of securities by their initial owners