Glossary of Terminology
A
Amministrazione Straordinaria
Receivership
Assegno
Cheque (check US)
Assegno bancario
Personal cheque
Assegno circolare
Bank cheque
Assemblea generale
Annual General Meeting
Assicuratore
Insurer
Assicurazione
Insurance
Assicurazione sulla vita
Life insurance
Asta
Auction
Aumento di capitale
Capital increase (usually in the form of a rights issue) Rights = diritti
Azione
Share / stock
Azione ordinaria
Ordinary share / common stock
Azione di risparmio
"Savings" share. A peculiarity of the Italian market, these shares have no voting rights but receive a larger dividend than ordinary shares.
Azione privilegiata
Preference share
Azionista
Shareholder
B
BCE (Banca Centrale Europea)
ECB (European Central Bank)
Banca d'Italia
Italian Central Bank
Banca
Bank
Banca popolare
Co-operative banks with limited liability. Generally more locally focussed.
Bancomat
ATM
Beneficiario
Beneficiary
Bilancio d'esercizio
Financial statements (both balance sheet and Profit & Loss account for a given period)
BOC (Buoni Ordinari Comunali)
Long-dated bonds emitted by local government bodies
Bonifico
Bank transfer
Bonifico estero
TT or telegraphic transfer (international)
BOP (Buoni Ordinari Provinciali)
Long-dated bonds emitted by provincial government bodies
BOR (Buoni Ordinari Regionali)
Long-dated bonds emitted by regional government bodies
Borsa
The stockmarket (in general)
Borsa Italiana
Italian Stock Exchange
BOT (Buoni Ordinari del Tesoro)
Short-dated Italian government bonds with maturities ranging from 2 months to one year. Interest is paid at maturity (as if it were a zero-coupon).
BTP (Buoni del Tesoro Poliennali)
Medium-long term Italian government bonds with maturities ranging from 3 to 30 years and with half-yearly coupon payments.
C
Capitale sociale
Paid-up share capital
Capitalizzazione
Market capitalisation
Carta di credito
Credit card
Carta prepagata
Pre-paid card
Cassa di compensazione e garanzia (CCG)
Central counterparty for both the cash and derivatives markets in Italy
Cassetta di sicurezza
Safe-deposit box
CCT (Certificati di credito del Tesoro)
Medium-long term Italian government bonds indexed to the current BOT yield.
Certificati di deposito
Certificates of deposit
Cedola
Coupon
Collocamento
Term used in conjunction with IPO for shares, or generally referring to the sale of any financial product.
Commissione
Commission
CONSOB (Commissione Nazionale per le Società e la Borsa)
Italian market regulator (equivalent of the SEC in the US or the FSA in the UK). Works in conjunction with the Banca d'Italia.
Conto corrente
Current account/cheque account
Corso
The price of a financial instrument attributed to it during market trading
Corso secco
The price of a bond considered without accrued interest
Corso tel quell
The full price of a bond (both capital value and accrued interest payable)
CTZ (Certificati del Tesoro Zero Coupon)
Zero coupon Italian government bonds with maturities at 18 or 24 months.
D
Delega
Authorisation. (This term is used for authorised signatories to an account)
Denaro
Literally "money". Also used in stockmarket circles to mean "bid". Opposite of "lettera" (ask).
Dividendo
Dividend
Documento d'Offerta
Offer document required to be filed as part of a take-over bid etc.
E
Estratto conto
Statement
F
Fallimento
Insolvency
Fatturato
Total sales
FIB 30
The old name for the Italian stockmarket index future. Since replaced with SPMIB.
Fideiussione
Guarantee (given by one person/entity for the obligations of another).
Flottante
Free float (i.e. number of shares in circulation for a particular listed company)
Fondo Comune d'investimento
Managed fund
Frazionamento - Raggruppamento
Stock split - stock consolidation
G
Gestione Collettiva del Risparmio
Collective fund management
Gestione di patrimoni mobiliari
Asset management.
Gestione Patrimoniali in Fondi
Asset management in managed funds.
Giacenza
Account balance - Giacenza media = the average balance over a period of time.
Girata
Payment to order (usually for a cheque)
I
IDEM
Italian Derivatives Market
Impresa di investimento
Generic term to describe any entity that is authorised to offer investment services.
Indice
Index
Interesse
Interest
Intermediario
Intermediary
Investitore
Investor (although for private individuals, the term risparmiatore (saver) is equally as common.
ISVAP (Istituto per la Vigilanza sulle Assicurazioni Private e di interesse collettivo)
Insurance regulator.
L
Lettera
Ask (financial - opposite of Denaro)
M
Mercato
Market
Mercato Ristretto
Since replaced by Expandi, the third tier of the Italian stockmarket.
Mezzi propri
Shareholder's funds (balance sheet)
MIB 30
Former main Italian stockmarket index. Superceded by the SPMIB 40 during the course of 2004.
Monte Titoli
The electronic register system for financial instruments.
MTA (Mercato telematico azionario)
Italian stock exchange main board.
Mutuo ipotecario
Mortgage (secured over real estate).
N
Non trasferibile
Not Negotiable (usually written on the back of a cheque by the drawer)
Nota integrativa
Notes to financial statements
O
Obbligazione
Bond
Obbligazione convertibile
Convertible bond
OICR (Organismo di investimento collettivo del risparmio)
General term to indicate collective managed fund vehicles
OPA (Offerta pubblica d'Acquisto)
Public bid for a listed company (can be further defined depending on whether the aim is to acquire total control etc.)
OPS (Offerta pubblica di scambio)
As above, but the bidder offers other financial instruments as consideration.
OPV (Offerta pubblica di vendita)
Placement of shares in a company already listed.
P
Parametro oggettivo di riferimento
Benchmark (objective reference point for an investment)
Partecipazione
Large or important shareholding (partecipazione rilevante - a shareholding exceeding 2% of the shares in a listed company)
Pegno
Pledge
Polizza
Policy (insurance)
Polizza caso morte
An insurance policy paying capital or an income to a beneficiary upon the death of the insured.
Polizza caso vita
As above, but the capital or income is paid to a beneficiary during the life of the insured.
Premio assicurativo
Insurance premium
Prestito
Loan
PIL (Prodotto interno lordo)
Gross Domestic Product
Prospetto Informativo
Prospectus
R
Rendimento Annualizzato
Annualised return
Rendimento Effettivo
Effective return (yield calculated on current price)
S
SGR (Società di gestione del risparmio)
Fund management company
SICAV (Società di Investimento a Capitale Variabile)
Open-ended investment company (equivalent of a UK Investment Trust, but unlisted)
SIM (Società di Intermediazione Mobiliare)
SocietÃ
Company or partnership (generic term)
Società di capitali
Stock company
Società di persone
Partnership
Sofferenze
Non-performing loans
Sollecitazione del pubblico risparmio
Any offer made to the public designed to encourage investment in a specific financial instrument or the sale/exchange of instruments already held.
Sopra la pari
A quotation over nominal value
Sotto la pari
A quotation under nominal value
Sottoscrittore
Literally "underwriter", but refers to anyone purchasing financial instruments at the moment of emmission.
Spese
Expenses
Strumenti finanziari
Literally "financial instruments". Basically comprises anything from shares to derivatives.
T
Tasso d'interesse
Interest rate
Tasso di cambio
Exchange rate
Titolo
A generic term for both stocks and bonds
V
Valore
Value
About the Writer:
Andrew Lawford is a New Zealander who has lived in Italy on and off for nearly four years. He lives near Genoa, the largest city in the coastal region of Liguria and works for a SIM which is a member of the Italian Stock Exchange and offers brokerage services on the worlds main financial markets. He can be contacted at: a.lawford@tiscali.it or by telephone on (+39) 3484 767576.