Glossary of Terminology
Cheque (check US)
Annual General Meeting
Assicurazione sulla vita
Aumento di capitale
Capital increase (usually in the form of a rights issue) Rights = diritti
Share / stock
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.
BCE (Banca Centrale Europea)
ECB (European Central Bank)
Italian Central Bank
Co-operative banks with limited liability. Generally more locally focussed.
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
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
The stockmarket (in general)
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.
Paid-up share capital
Carta di credito
Cassa di compensazione e garanzia (CCG)
Central counterparty for both the cash and derivatives markets in Italy
Cassetta di sicurezza
CCT (Certificati di credito del Tesoro)
Medium-long term Italian government bonds indexed to the current BOT yield.
Certificati di deposito
Certificates of deposit
Term used in conjunction with IPO for shares, or generally referring to the sale of any financial product.
CONSOB (Commissione Nazionale per le SocietÃ 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.
Current account/cheque account
The price of a financial instrument attributed to it during market trading
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.
Authorisation. (This term is used for authorised signatories to an account)
Literally "money". Also used in stockmarket circles to mean "bid". Opposite of "lettera" (ask).
Offer document required to be filed as part of a take-over bid etc.
The old name for the Italian stockmarket index future. Since replaced with SPMIB.
Guarantee (given by one person/entity for the obligations of another).
Free float (i.e. number of shares in circulation for a particular listed company)
Fondo Comune d'investimento
Frazionamento - Raggruppamento
Stock split - stock consolidation
Gestione Collettiva del Risparmio
Collective fund management
Gestione di patrimoni mobiliari
Gestione Patrimoniali in Fondi
Asset management in managed funds.
Account balance - Giacenza media = the average balance over a period of time.
Payment to order (usually for a cheque)
Italian Derivatives Market
Impresa di investimento
Generic term to describe any entity that is authorised to offer investment services.
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)
Ask (financial - opposite of Denaro)
Since replaced by Expandi, the third tier of the Italian stockmarket.
Shareholder's funds (balance sheet)
Former main Italian stockmarket index. Superceded by the SPMIB 40 during the course of 2004.
The electronic register system for financial instruments.
MTA (Mercato telematico azionario)
Italian stock exchange main board.
Mortgage (secured over real estate).
Not Negotiable (usually written on the back of a cheque by the drawer)
Notes to financial statements
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.
Parametro oggettivo di riferimento
Benchmark (objective reference point for an investment)
Large or important shareholding (partecipazione rilevante - a shareholding exceeding 2% of the shares in a listed company)
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.
PIL (Prodotto interno lordo)
Gross Domestic Product
Effective return (yield calculated on current price)
SGR (SocietÃ di gestione del risparmio)
Fund management company
SICAV (SocietÃ di Investimento a Capitale Variabile)
Open-ended investment company (equivalent of a UK Investment Trust, but unlisted)
SIM (SocietÃ di Intermediazione Mobiliare)
Company or partnership (generic term)
SocietÃ di capitali
SocietÃ di persone
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
Literally "underwriter", but refers to anyone purchasing financial instruments at the moment of emmission.
Literally "financial instruments". Basically comprises anything from shares to derivatives.
Tasso di cambio
A generic term for both stocks and bonds
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: email@example.com or by telephone on (+39) 3484 767576.