MAROCLEAR Glossary: Key Terms in Finance and Securities Management

Average of the prices of a sample of securities representative of a market, sector... This average reflects the general trend of market developments. Each country has its own national indices. The Moroccan stock market indices are MASI and MADEX.

Messages sent by Maroclear to Bank Al-Maghrib to receive net long positions in return for the purpose of closing a transaction.

The secondary market is the one where financial securities already created (on the primary market) are traded between investors. By ensuring the liquidity of financial investments, the secondary market ensures the quality of the primary market and the valuation of financial securities.

To execute a stock exchange transaction, each client must communicate to its stock exchange intermediary a "stock exchange order" including the meaning of the order, purchase or sale, the number and denomination of securities to be traded, a validity limit and a price condition.

A security transaction is an operation undertaken by a publicly traded or unlisted company and that affects the securities (shares, bonds) it has issued. By definition, all OST are applied directly to the securities accounts of affiliates (stocks).

Share transaction which consists of increasing the nominal value of shares by dividing the number of shares in the same proportions. A shareholder who holds 200 shares of nominal 50 gets 100 shares of nominal 100 in the case of a 2-fold consolidation. The consolidation of shares results in an adjustment to the price of the stock.

Technique that allows a company to buy its own shares on the stock exchange in order to regulate its price. This action is framed by legal and regulatory provisions. They require the company to define and publish the characteristics of its purchasing programme (period, race conditions...) and to obtain prior approval from CDVM by endorsing an information notice produced and published for this purpose.

Event that occurs when a listed company changes the number of shares in its share capital.

Action to buy shares during a capital increase or a public offer to sell.

Public limited company responsible for the management of the stock exchange in Casablanca. Its capital is subscribed in full by the authorized stock exchange companies, and it is held consistently in equal shares by all stock exchange companies.