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| PEA (Plan d'Epargne en Actions) |
Equity savings scheme. Shares held in a PEA for more than five years are exempt from tax (but not social security levies). Not all shares are eligible for inclusion in a PEA. The scheme must invest either in shares of companies incorporated in the European Union or in French collective investment schemes with at least 75% of their assets invested in EU-incorporated companies.
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| Parity |
The theoretical number of warrants that give the right to either buy (for call warrants) or sell (for put warrants) one unit of the underlying security. (See also Conversion Ratio). Note, however that the minimun trading size is 1 warrant.
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| Payout Formula |
The payout formula for a warrant calculates the expiry value of the warrant. This amount is equal to the difference, if positive, between the Exercise Price of the warrant and the Expiry Price of the underlying. This amount may need to be converted into sterling, if the underlying is non-sterling denominated, and/or adjusted by the warrant's parity.
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| Portfolio insurance |
Method that consists in regularly and automatically adjusting the proportion of risky assets (i.e. those exposed to a market index) and non-risky assets (cash) in order to provide total or partial protection for the principal invested in a portfolio.
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| Price or premium |
The amount paid for the warrant. |
| Price/Earnings Ratio |
Price of a stock divided by earnings per share. |
| Pricing supplement |
The document containing the full terms and conditions of a warrant series. A summary of the Pricing Supplement is called a Term Sheet.
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| Primary market |
Market for new issues of securities (initial public offerings, etc.), where companies issue shares directly to shareholders. See Secondary market
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| Principal |
The face value of a bond.
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| Prospectus |
Document informing investors about an offering of securities by a listed company (IPO, capital increase, etc.) or a collective investment scheme. Investment scheme prospectuses, which are given to investors before they subscribe, provide detailed information about the risks to which the scheme is exposed. They also contain additional information about the terms and conditions of the product and the way it operates. It is important to read the prospectus carefully in order to analyse the proposed investment.
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| Protection |
Level to which the capital is partially protected, below which the net asset value of a SGAM Flexible ETF may not fall in any rolling one-year period.
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| Providers of investment services |
Providers of investment services include both investment companies ("entreprises d'investissement") and banks/other credit institutions authorized to offer investment services ("établissements de crédit").Investment companies are entities whose core business consists of one or more activities relating to investment services, i.e., own-account or third-party trading, third-party asset management, and intermediation on primary markets. Former "Sociétés de Bourse" or Bourse member firms qualify as investment companies. Investment service providers are licensed to operate by the Comité des Etablissements de Crédit et des Entreprises en Investissement, with the exception of asset management companies, which are licensed by the COB. Investment-service providers must have prior authorization from the Conseil des Marchés Financiers (CMF) for all activities, with the exception of asset management, which is authorized by the COB.
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| Pure broker-dealer |
Pure broker-dealer: following the January 1st, 1992 introduction of distinct licences for each type of activity handled by brokerage firms, this status is attributed to member firms that subcontract clearing operations to outside suppliers.
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| Put Option |
Gives the buyer the right to sell a number of shares of stock at a price until the option's expiration date. Put buyers hope the price of the stock will fall. Puts may also be purchased to protect an investment in case the price of the stock goes down.
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| Put warrant |
A warrant which gives the warrant holder the right, but not the obligation, to sell the underlying security at a predetermined price (the strike or exercise price), on (European Style) or before (American Style) a predetermined date (the Expiry or Maturity Date). The value of a put warrant will appreciate when the price of the underlying security depreciates.
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