MAROCLEAR Glossary: Key Terms in Finance and Securities Management

The value of a company on the stock market at a specific time. It is obtained by multiplying the number of shares in a company by its stock market price.

When the account is registered with the financial intermediary, who manages the securities on behalf of his clients.

The term M&A covers different aspects of the acquisition of one company by another, in the areas of corporate finance, corporate strategy and financial operations management.

Transaction by which two companies combine their assets to form a more profitable group. Depending on the type of merger, a new legal entity may or may not be created.

Mutual funds are joint-ownership securities. The number of units increases by subscribing new units and decreases due to redemptions made by the Fund at the request of unitholders.

The maturity or residual maturity is the time between the date on which a bond is issued and the date on which the nominal value of that bond is redeemed.

Casablanca Stock Exchange index, which includes all listed shares. This is an index calculated on the basis of floating capitalisation and based on 1,000 as at 31/12/1991.

Contract by which a legal person delegates to an authorized financial intermediary the initiative of managing its securities. The mandate specifies the direction of management (prudent, bold...), the level of information of the account holder, the amount and structure of the intermediary’s remuneration.

Selective index of the Casablanca Stock Exchange, which groups together continuously listed securities. This is an index calculated on the basis of floating capitalisation and based on 1,000 as at 31/12/1991.

Procedure of IPO by fixing the quantity, the price depending on the demand and requirements of the seller.