Glossary

BONDS

Debt security contracted by a company or government agency, which is obliged to pay a fixed or floating interest rate and the principal during a fixed period of time.

CAPITAL MARKET

Segment of the financial market in which individuals and entities engage in the trade of financial instruments. It deals with the effective channeling of medium to long-term funds from those who have to those who need.

CAPITALIZATION

Evolution of a company’s total value over time. In other words, it is the sum of a company’s debt and equity.

CAVALI ICLV S.A.

Special limited company whose activity is to transfer securities from the seller to the buyer and money from the buyer to the seller.

COUPON

Part of a bond that is periodically detached for interest payment.

DIVIDEND

Income periodically received from the ownership of shares of a company.

ISSUERS

Companies or government entities that issue securities to finance their operations.

LIMA STOCK EXCHANGE-BVL

Private entity in which its members safely and transparently trade securities listed on the stock market.

MARKET VALUE

Value of a product, good or service based on the supply and demand of the market.

ORDINARY SHARE

Type of share issued by companies that gives the shareholder the right to share in the profits of the company, to vote on at general shareholders' meetings, among others.

PAR VALUE

Base or face value of a share. It is the result of dividing a company’s share capital by the number of shares issued by it.

PUBLIC OFFERING

Securities offered by a company to the public and listed on the stock market.

RISK RATING AGENCY

Agency that are hired to estimate the investment risk in any financial product.

Unit of ownership issued by a company that represents the value of one of the equal parts into which a company’s capital is divided.

SHARES OUTSTANDING

Shares of a company that have been issued and are currently held its shareholders.

SHARE CAPITAL

Amount of money invested in a company by its owners in exchange for shares of ownership.

STOCKHOLDERS EQUITY

Remaining amount of assets available to shareholders after all liabilities have been paid. It is made up of the contributed capital and the earned capital.