Computershare Investor Centre - Australia

Investor Centre - Australia

This page provides definitions for commonly used financial terms.

By Alphabet

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A call option is the right of the Issuer to purchase a parcel of shares at a pre-determined price within a specific period of time
Call Notice
A letter sent to Investors requesting payment of calls
Call Option
A contract which entitles (but does not require) its holder to buy a fixed number of shares at a predetermined price at any time prior to or on the specified expiry date
At times a cap is applied to a warrant at the time of issue which caps the upside potential of that warrant. This is usually fixed by the Issuer and details are provided in the disclosure document.
Any asset or stock of assets capable of generating income
Capital Expenditure
Funds used by a company to acquire or upgrade long term assets. This type of outlay is made by companies to maintain or increase the scope of their operations
Capital Gains / Loss
The difference between the sale price of a capital asset and its cost
Capital Gains Tax
A tax on income (gain) arising from changes in the market value of assets
Capital Growth
The increase in value of a capital asset
Capital Reconstruction
Restructuring of an Issuer’s issued capital structure
Cash Flow
The amount of money being transferred into and out of a business over a period of time
Cash Issue
Issue of securities for cash for the purpose of raising additional capital for the company
Certified Copy
A copy of an original document that has been verified as being a true and correct copy after the original document has been sighted by an authorised person
Chairperson / Chairman
The person elected to head a board of directors
ASX’s Clearing House Electronic Subregister System
Types of securities
A Client is:
• Someone who employs or seeks advice from a professional adviser
• A customer
• Someone under the patronage of another, dependant
Closing Date
The last day on which applications will be accepted under an Offer
Closing Stock Prices
The last price a stock traded for the close of the stock market for a given day.
Companies Act
Companies Act 1993
A legal entity regulated by the New Zealand Companies Office under the Companies Act
The process of ensuring that a company and its employees adhere to relevant laws, statutory regulations, codes and standards, legislative and contractual obligations
Compulsory Acquisition
During a takeover bid, Investors will be invited to sell a specific proportion of their holdings. Acquisition of over 90% of the shares from more than 75% of the Investors is required before a compulsory acquisition can occur
If these conditions are met, the offerer can then compulsorily acquire the balance to mop up the shares belonging to non-acceptors (dissenters), including deceased estates and Investors who have disappeared
Price paid to purchase shares
Consolidation is a form of reconstruction. It is the combining of a company’s shares (from a larger number of shares) into a smaller number of shares. The total value of any Investor’s holdings is not affected by the consolidation.
Rules governing a company
Contract Note
A written document, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note details the number of shares, all associated costs, and the type of security
The cancellation of certificates and recording of the shares in an uncertificated holding, or the change of class of Security (options, notes, etc) to another (fully paid)
Conversion Ratio
The number of ordinary shares obtainable on the conversion of one convertible preference share or convertible note
Convertible Debentures
Fixed interest securities issued by limited companies in return for long term loans
Convertible Debt Security
A security which can be exchanged for a specified amount of another, related security, at the option of the Issuer and/or the holder
Convertible Notes
Financial securities issued to an Investor by a company in return for cash
Convertible Redeemable Preference Shares
Redeemable shares which have a specific date at which they are redeemable (i.e. exchanged for cash by the issuing company)
Convertible Securities
Security which can be exchanged for a specified amount of another, related security, at the option of the Issuer and/or the holder
Corporate Action
Corporate Actions include Rights Issues, Bonus Issues, Dividends or other payments or offers under a Buy Back scheme and are generally carried out by the Registry
The interest rate paid on a specified date to a debt security holder
Coupon Date
The date on which the coupon is paid to a debt security holder
Coupon Frequency
How often the coupon is paid each year
Someone to whom money is owed
Her Majesty the Queen in Right of New Zealand
CSN (Common Shareholder Number)
A CSN is a "Common Shareholder Number" and is allocated by the New Zealand Stock Exchange. It is up to 9 digits in length and is used to identify shareholders, who may have shares managed by more than one Share Registry, by way of a common number
Notes and coins that are the current medium of exchange in a country
Current Assets
Assets of a company which are regularly turned over including cash, work in progress and debtors
Current Liabilities
Debts owed by a company which are due for settlement within 12 months. These include creditors and taxes due etc
An entity or nominee holding securities on behalf of Investors
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