Bodies of the stock exchange Committees that are directly responsible for performing the functions of the stock exchange As stipulated in the 1994 amendment to the German Stock Exchange Act, the bodies of the stock exchange comprise the Exchange Council, the Exchange Operating Board, Market Surveillance, the Sanctions Committee and...

Bear market Market trend characterized by sustained price declines, usually in all market segments Investors in a bear market tend to have a pessimistic outlook. Their strategy is to acquire so-called short positions, for example, by selling securities in the hope that they will be able to buy them back...

Balance-sheet analysis Analysis of individual items on the balance sheet with the goal of evaluating a company’s economic situation Balance-sheet analysis can be subdivided into internal and external analysis. Internal balance-sheet analysis generates information on the company for the management staff, and is part of corporate controlling operations. In external...

American depositary receipt (ADR) A receipt issued by an American bank for foreign shares On NYSE and NASDAQ, investors trade ADRs instead of the shares they represent. American depositary share (ADS) Depositary shares by means of which the registered shares of foreign companies can be traded on the US exchanges...

Admissions Office Stock exchange body in charge of admitting securities to the Official Market (Amtlicher Markt) Before a security is admitted to the Official Market, the Admissions Office examines the listing prospectus to determine whether the issuer and the sponsoring bank have met admission and disclosure requirements. The Admissions Office...

Admission to the exchange Prerequisite for a listing on the stock exchange At FWB® Frankfurter Wertpapierbörse (Frankfurt Stock Exchange) the Admissions Office is responsible for deciding whether to admit securities to the Official Market; the admission of securities to the Regulated Market is determined by the Admissions Committee. Each market...

Admission of securities to the Regulated Market Decision of the Admissions Office of an exchange to admit a security to the Regulated Market In order to have a security admitted to the Regulated Market, the issuer, together with an underwriting bank (a bank or investment company), must first submit an...

Acquisition currency Means of payment used in the takeover of a company This term is used primarily in connection with a merger that takes place between two listed companies via the exchange of their registered shares. If you are interested in performing a reverse merger on the Frankfurt Stock Exchange...

Liquidity and transaction costs: Two important criteria of market quality In the discussion about the relative advantages of securities markets, two factors are regularly the focus of attention: liquidity and transaction costs. In the framework of portfolio restructuring, liquidity is by far the most important decision-making criterion for investors (Schiereck...

FRANKFURT STOCK EXCHANGE LISTING and IR/PR – Vital to the Success of Your Public Company More buying than selling makes stocks go up, and more selling than buying makes a stock go down. This is a very simplistic explanation, but it’s also true. The magic question is, what causes more...