MAROCLEAR Glossary: Key Terms in Finance and Securities Management

The financial market, like any market, is a place of exchange between buyers and sellers. As in any market, the selling and buying prices are determined by the level of supply and demand. This exchange concerns financial products or instruments.

Procedure for IPO by fixing the quantity and the single price of securities to be sold.

A financial security is characterized by a series of future cash flows that are more or less risky. There is a distinction between equity securities (shares), debt securities (bonds, commercial paper, deposit certificates, treasury bills...) and option or contingent securities (options).

Refers to a rapid purchase and sale operation on the same value, during the same day in a short interval.

Account opened for financial transactions (allocations, subscriptions, etc.) in the name of the centralizer intended to temporarily register new securities pending their distribution between the account-keeping establishments.

Held by each custodian, it is served on a chronological basis for all entries affecting its securities accounts and those of the holders registered with it. It is referenced by the name of the account or accounts that are affected.

Regime which subjects all affiliates to the operations of the Central Depositary at the time of their registration in an account with Maroclear, as mentioned by the general regulation of registration in an account and approved by decree of the Minister responsible for finance.

The registered office of a company or legal person is a place, specified in the articles of association, by a separate act or in ad hoc registers, which constitutes its domicile. He thus determines his legal domicile and, consequently, his nationality.

Amount paid to shareholders representing a part of the future dividend. The interim dividend is common in the case of a large dividend.

Permanent function, independent of operational units, which ensures that the structure and accounting organization of the account keeper comply with the provisions provided for by the reference texts and in particular by the general regulations and instructions of Maroclear.