A

Ad hoc publicity

The German law on securities trading imposes an obligation on issuers to provide "ad hoc publicity", in other words an obligation to publish immediately any important information concerning the company that might have a material influence on the share price (Section 15 WpHG). This is to make sure that information on prices is not just known to insiders, who could use this advantage for their own profit. The information must first be sent to the Federal Financial Supervisory Authority BaFin, and to the stock market transactions management, who then decide whether trading in the shares should be suspended.

ADRs

= American Depositary Receipts: deposit certificates for non-American shares issued by US banks. They are traded in place of the shares themselves in unofficial trading on US stock exchanges.

AG

Abbreviation for Aktiengesellschaft (= Joint-stock company).

Agio

The amount by which the trading price for a newly issued security exceeds its face value.

Analysts

Experts who closely follow the transactions on the money market and the capital market over a specific period of time. They note relevant company events and analyse changes, i.e. look for possible correlations and explanations. Their research provides a basis for investment decisions. See also Equity research.

Annual financial statements

The annual financial statements consist of the company's balance sheet and income statement. In the case of a German joint-stock company, they are prepared by the board of management, audited by a certified public accountant to determine whether they give a true and fair picture, and also examined by the supervisory board and the general meeting of shareholders.

Annual report

The report published annually by a stock corporation or an investment fund giving an account of business operations and the position of the company. The annual financial statements are also included and explained in the annual report. The annual report is available to every shareholder.

Ask price

Market value at which a security is offered for sale. Opposite: Bid price.

At best

Order to a bank to sell a security at the best rate possible without a limit (market order). See also Cheapest.