The absolute difference states the change of the current share price on that of the previous trading day. It is also possible to determine the absolute difference between the current price and the initial buying price, whereby a positive value indicates a gain and a negative value shows a loss. On the Frankfurt Stock Exchange, the absolute difference is stated in euros.

In Germany, the accrued interest is compounded.

This term is used primarily in connection with a merger that takes place between two listed companies via the exchange of their registered shares.

Actively managed funds are offered by investment companies. Some of them are traded in Deutsche Börse's Xetra® Active Funds segment. They are similar to individual stocks in that their shares can be bought or sold on the exchange at any time. Unlike typical mutual funds, Xetra Active Funds funds do not carry a load. Because the assets held by these funds are bought and sold as market conditions change, an actively managed fund can outperform a benchmark index. As a rule, dividends are reinvested.

The additional margin covers the losses that would result from the worst-possible price development (worst-case loss) during the following 24-hour period. The margin is paid to the central clearinghouse by the contract holder.

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 application and a listing prospectus to the Admissions Office. These documents provide information on the type and volume of the security to be admitted. The issuer and the bank are responsible for the accuracy of the contents.

The admissions application is to be posted in the stock exchange building and published in the list of quotations (Kursblatt), in the journal for statutory stock market announcements (Börsenpflichtblatt) and in the Federal Official Gazette (Bundesanzeiger). The listing prospectus is published by the issuer in the journal for statutory stock market announcements. As soon as the company is admitted to the Regulated Market, the prospectus is to be made available free of charge at the underwriting banks and the Admissions Office named therein.

Pursuant to the Stock Exchange Listing Act (Börsenzulassungsverordnung) the most important conditions for admissions and follow-up requirements are:

The issuing company must have existed for at least three years.

The expected issuing value must be at least ?1.25 million.

For shares, the total par value must be at least ?250,000.  

At least one interim report on the financial situation and general business developments must be published during the financial year.

Information that is relevant to the company must be published forthwith.

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 segment has its own admissions requirements. However, all issuers must publish an offering prospectus containing the fundamental data required for an evaluation of the security.

Admission to General Standard does not require any further action on the issuers' part. However, issuers have to apply for admission to Prime Standard; a listing in this segment is subject to the fulfillment of high international transparency requirements.

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 comprises at least 20, but no more than 24, members who are elected by the Exchange Council. Of these, not more than half may be professionally involved in exchange trading. Members are elected for three years, and can be re-elected. The Admissions Office appoints one chairman and up to two deputy chairmen.

The Admissions Office has a quorum when at least five voting members have cast their vote, either verbally or in writing. A simple majority is required to pass a resolution. In case of a tie, the chairman or the member in charge of the session casts the deciding vote. Any member who owns shares in the company seeking admission is not eligible to vote.

Important regulations on the Admissions Office are contained in the Stock Exchange Act (Börsengesetz), section 4 para. 3 and section 37, as well as in the Stock Exchange Rules and Regulations.

The AIBD return determines the real interest return on bonds by compounding interest on a daily basis. Irrespective of the time at which the interest is credited, the interest that has accrued on a given day is added to the principal, itself bearing interest the following day.

In Germany, regulations on the real interest return are regulated in the Charges Disclosure Rule (Preisangabeverordnung).

AIBD stands for "Association of International Bond Dealers", the former name of ISMA (International Securities Market Association).

At the end of the subscription period, the demand for a new issue can exceed the number of shares being issued. In that case, the underwriting bank allots the securities with the approval of the issuer, either by lottery or on the basis of a formula. An allotment formula usually takes into account the issuer's preferred target groups.

On NYSE and NASDAQ, investors trade ADRs instead of the shares they represent.

Antonym: European-style option

The Annual General Meeting (AGM) convenes once a year. The date is announced by the company's executive board, with at least one month's notice. At the AGM, the Executive Board informs shareholders on the company's current economic and financial situation and its projected future development. Other typical items on the agenda of the AGM are to grant discharge to the executive and supervisory boards, to vote on the appropriation of profits, to appoint an auditor, and to discuss and vote on important corporate policy issues (takeovers, capital increases, etc.). Shareholders can exercise their right to vote at the AGM.

In urgent cases, an extraordinary General Meeting can be summoned.

If the price of a given security varies from one stock exchange to another, market participants will exploit these differences by simultaneously purchasing the security at the exchange where it is cheaper (Exchange A) and selling it on the exchange where it is more expensive (Exchange B). The price at Exchange A will rise owing to the increased demand for the security, while at Exchange B, the price will drop as a result of the increase in supply. Thus, arbitrage enhances the efficiency of the market by equalizing the prices of the same security at different exchanges. In so-called cash-futures arbitrage, participants exploit the discrepancy between the prices of a security in the cash market and in the futures market. For example, an arbitrageur will buy a stock option that expires the same day in the hope of selling it on the cash market at a price which is higher than the exercise price.

A market participant publishes an ask price with an entry in the order book on an electronic trading system; in rare cases this is done orally on the trading floor. For investment and leverage products, this price is set by the issuer.

Market participants announce ask prices either by open outcry on the trading floor, or by entering them into the open order book of an electronic trading system.

A company can generate liquid funds by selling a portion of its accounts receivable to a subsidiary, which then finances its own operations through the issue of asset-backed loans. Such subsidiaries are established expressly for the purpose of implementing the asset-backed securities (ABS) funding model. ABS can also be issued on receivables that are paid in installments, e. g. receivables from leasing agreements, long-term car loans, collateralized consumer loans, and similar receivables. ABSs are paid back as soon as the borrowers settle their debts.

Financing with ABSs enables companies to utilize a wider range of accounting procedures, and helps reduce their financing costs.

A price addendum is a code that is added to the price in floor trading. It states in what way the respective order situation is to be taken into account as the price is fixed. This information is part of the tick data.

If this is the case, the intrinsic value of the warrant equals zero.

In an auction, all buy and sell orders are pooled and matched in an order book; the auction price is determined according to the principle of highest volume transacted.

The auction system enables participants with the highest bid prices (the demand side of the market) and the lowest ask prices (the supply side of the market) to execute their orders. Because the price determination procedure does not require a trading intermediary, it can also be performed by the electronic trading system. During floor trading at FWB® Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), the Xontro® system assists the lead broker in determining prices on the basis of the auction principle.

The Xetra® electronic trading system also determines prices using the auction system. The market model on which the system is based provides for a number of regular auctions: the opening auction, the closing auction and, depending on the stock, several intra-day auctions. Each auction consists of three phases:

? Outcry phase: in this phase, participants can enter orders and quotes, or delete previous entries. In stock trading, the order book is sometimes closed, whereas in bond trading it is always open (i.e. it can be examined by anyone who wishes to do so).

? Price determination phase: the auction price is determined in keeping with the principle of highest volume transacted, on the basis of the order book situation at the close of acceptance.

? Market clearing phase: after the auction price has been determined, there may be an overhang of orders, either with a limit at the auction price or with no limit; in this case, the orders are offered to the market at the auction price.

Antonym: Market-maker principle

In an auction, all buy and sell orders are pooled and matched in an order book; the auction price is determined according to the principle of highest volume transacted.

The auction system enables participants with the highest bid prices (the demand side of the market) and the lowest ask prices (the supply side of the market) to execute their orders. Because the price determination procedure does not require a trading intermediary, it can also be performed by the electronic trading system. During floor trading at FWB® Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), the Xontro® system assists the lead broker in determining prices on the basis of the auction principle.

The Xetra® electronic trading system also determines prices using the auction system. The market model on which the system is based provides for a number of regular auctions: the opening auction, the closing auction and, depending on the stock, several intra-day auctions. Each auction consists of three phases:

Outcry phase: in this phase, participants can enter orders and quotes, or delete previous entries. In stock trading, the order book is sometimes closed, whereas in bond trading it is always open (i.e. it can be examined by anyone who wishes to do so).

Price determination phase: the auction price is determined in keeping with the principle of highest volume transacted, on the basis of the order book situation at the close of acceptance.

Market clearing phase: after the auction price has been determined, there may be an overhang of orders, either with a limit at the auction price or with no limit; in this case, the orders are offered to the market at the auction price.

Antonym: Market-maker principle

Automatic exercise is provided for in the issuing terms and conditions of the warrant.