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At Link, we understand that many of the terms used to describe the processes involved with managing your holdings are complex.

To assist you, we have made this glossary available. It is organised alphabetically, so you may select a letter-range in the menu below and scroll through the definitions, or you may use the search function to search for a specific term.


Acceptance of an Offer - Notification by a party to accept the terms of an offer made by another party. For example, in a Rights Issue, the Investor will notify acceptance of an offer made by the Issuer.  Acceptances must be forwarded to the Registry.

Account Designations

Account designations are generally registered the following reason:

  • Identification Purposes - Account designations may be registered for identification purposes to distinguish between multiple holdings or Trust identification (e.g. "No 1 Account" and "Smith Family"). The designation should not include any reference to a Trust or Trustee.

Holdings cannot be registered directly in the name of a minor, deceased estate or trust. In this case, the holding may be registered in the name of the parent(s), executor(s), administrator(s) or trustee(s) with an account designation.

Accounting Period

The selected time period for which financial reports are prepared, normally one year but listed companies also prepare and distribute half-yearly interim financial reports.

Account Number

This is the unique number your bank gives your account.

Ad Hoc

A Latin term meaning improvised and often impromptu.


An individual appointed by a probate court to handle the estate of a person who died intestate. They have the same duties as an executor.

Admitted Legal Practitioner

An Admitted Legal Practitioner is a Lawyer, Solicitor or Barrister.


Third party provider, for example, Link is an agent of the Issuer.


The process of totalling the unit quantity or settlement amount of individual settlement instructions, which are settling on the same holding or through the same payment facility, in the same settlement cycle.

All Ordinaries Share Price Index (NZX All Index)

A barometer of the sharemarket based on movements in the market value of a number of companies traded on the sharemarket.

The NZX All Index is a broad market index. It comprises all securities quoted on the NZX Main Board of New Zealand Listed Issuers that are of a class eligible for indexation.

The index is made up of the weighted share prices of all eligible securities on the NZX Main Board. Established by NZX  in 1987 at a base value of 1000 points on 30 June 1986, it is the predominant measure of the overall performance of the New Zealand sharemarket. The companies are weighted in the index according to their NZ Free Float Market Market Capitalisation (total market value of a company's shares).


Issue (allotment) of new securities to an Investor and the recording of this issue on the register.

Allowable Difference

When comparing any two holdings there may be differences in either the name or address. Some differences will be so minor that the two holdings can be considered the same. These differences are the 'allowable differences'.

American Exercise

An option or warrant contract allowing holders to exercise options at any time up to and including the expiry date. American Style are the most common options listed on NZX. Compare with European Style options.


Chairman’s report at the Annual Meeting (AM) of a listed company or any information provided by a listed company. An official announcement is typically regarding new share issues, expansion moves and other changes, which are likely to affect market movement. Listed companies are legally bound to report these announcements to the stock exchange allowing those Investors not attending the AM to act promptly on the information. See also NZX Listing Rules.

Annual Meeting (AM)

The Annual Meeting (AM) is a meeting of a company's members (shareholders) which is required by Law. A public company must hold an AM at least once in each calendar year and within six months after the end of its financial year.

The business of an AM may include any of the following:

  • The consideration of the annual financial report, directors' report and auditor's report including company performance and future prospects
  • The election of directors
  • The appointment of the auditor
  • The fixing of the auditor's remuneration.

Shareholders vote on board elections and significant company issues.

Annual Report

The report to Investors issued each year setting out the Issuer's activities and its financial statements.

The annual report contains profit and loss statements, balance sheet and a statement of cash flow, as well as notice of the Annual Meeting (AM) and business resolutions.

Annual Yield

Annual yield is the dividend return from an investment. To calculate the annual yield divide the dividend per share by the share price, then convert to a percentage. Also known as dividend yield.

Yield = (Dividend per share / Last market price) x 100.

Annualised Return

Annualised Return is the profit received to the writer of the option contract for buying the shares and writing that contract.


A form or submission of information by an applicant to apply for securities.

Application Statement and Undertaking

A declaration and indemnity signed by an individual or an officer of a company to enable the reissue of certain documentation.

Appropriation of Profits

The allocation of a portion of retained earnings (balance of profit and loss appropriation account) for a particular purpose, for example, to provide for a proposed dividend.


Arbitrage relates to buying and selling of the same or equivalent securities in different but related markets.

As at Date

Date upon which the relevant information is recorded.

Asset Backing

Net assets of a company (in $) are decided by the number of issued shares. For example, ABC Ltd with $100,000 net assets and 10,000 shares issued has an Asset Backing of $10 per share.

Asset Classes

A broad category of assets, e.g. shares, cash, property.


Resources owned by a company or person. Assets can be divided into a number of different categories based upon their liquidity (that is, the ease with which they can be converted to cash). The categories are current assets, investments, fixed assets and intangible assets.


AUD = Australian Dollar.

The 3-letter international currency code is normally the 2-letter country code (AU = Australia) followed by the first letter of the country's currency name (D = Dollar).


A formal verification of the accuracy of accounting records and published accounts. An audit can be external or internal and is undertaken both to ensure the correctness of classifications and amounts and to discover fraud. The external auditor has a statutory responsibility to report on the truth and fairness of the accounts.

Auditor / Internal Auditor

A person appointed and authorised to audit or examine an account or accounts.

Auditor's Report

A statutory statement by the auditors of a company to its Investors in the annual report.

Authorisation Cut-off Time

The time by which banks must give final and irrevocable authorisation for Participants funds commitments for that days settlement.

Authorised Capital

The maximum share capital which an Issuer is authorised by its constitution to issue to subscribers. Authorised capital is also referred to as Nominal Capital.

Authorised Security Movement (ASM)

A pre-determined exact quantity of units which has been authorised to be able to alter the issued capital of a specified security as a result of a corporate action (allotment) or special off market transactions (placements).

Available Balance

The difference between the total holding and the securities reserved in for sale.

Bad Debts

Bad debts are losses which cannot be recovered. They are generally written off.


This is the how many shares you hold in a specific security. You can check your balance through the Link Market Services Investor Centre.

Balance Date

The completion of an accounting period – typically 31 March for the majority of New Zealand companies.

Bank Cheques

A bank cheque is a cheque drawn by a bank on itself. Bank cheques are issued, as a service, to customers who do not have a cheque account or who require a bank-backed cheque to pay for goods or services.

Bank cheques are normally accepted as the equivalent of cash and goods or services are immediately given against them. Sometimes, especially for large transactions, the safety and convenience of bank cheques are preferred to cash.


A person who is declared bankrupt (either at his/her own request, or at the request of his/her creditors) is unable to pay his/her debts when they are due.

His/Her estate is placed in the hands of a receiver or trustee who will distribute the estate according to the provisions of the Insolvency Act. It should be noted that insolvency applies to an individual; the equivalent status for a company is receivership or liquidation.

Bear Market

A market in which prices decline sharply against a background of widespread pessimism. The opposite of bull market.

See also Bull Market.


A comparison, between the performance of a fund, against an index.

Bancs (TCS Bancs)

The trade and settlement system operated by the New Zealand Clearing Corporation Limited

Beneficial Holder

Person/s or entity deemed to be the rightful owner of securities.

In most cases the person or company names as the Investor on the register of members is the beneficial holder. It is possible for a third party to hold securities on behalf of a beneficial holder.


A person who gains or benefits from a will.


A measure of market sensitivity, that is, the extent to which a share or a portfolio fluctuates with the market. It gauges the movement of a particular commoditys price against a related composite index.

The whole market, by definition, has a beta factor of 1.0. If a stock has a beta of less than 1.0, its price is expected to rise or fall proportionately less than the market, while stocks with a beta greater than 1.0 are expected to rise or fall more than the market as a whole. The higher the beta, the higher the price volatility.


A bid is the “buying” price that an investor is prepared to pay for shares (opposite to offer). See also Offer.

Bill / Bill of Exchange

A negotiable instrument that is often used as a method of raising funds privately. It is an unconditional order in writing requiring the party to whom it is addressed, and who accepts the bill (known as the acceptor), to pay a certain sum on a fixed date in the future. The acceptor assumes primary liability to pay on maturity the face value of the bill to its holder.

If the acceptor fails to pay the bill, the drawer who issues the bill is liable. If the bill has been endorsed by a third party, such as a bank, the endorser is liable should both the acceptor and the drawer fail to pay.

Bills of exchange usually mature within six months and are sold at a discount to face value.

Blue Chip Securities

Shares of a company known for its ability to make profits in good and bad times. The term has become generic, meaning quality securities.

Board of Directors

Those people who have been elected to direct the running of a company. Directors must be re-elected regularly to retain their position. They may be executive or non executive.


A loan for a fixed period of time at a fixed rate of interest which can be traded on the sharemarket. Generally issued by a government or semi-government body, as a tradeable debt Security to raise money. Holders receive a fixed rate of interest for their loan. Once the maturity date is reached the bond is repaid with interest.

Bonus Issue/Shares

Issue of shares to existing Investors without any monetary cost on a rights basis.

A Bonus Issue is the allocation of new shares to existing Investors, at no cost to the Investor. When Investors receive a Bonus Issue the actual value of their holding should not change, but the holding itself will increase in size.

Bonus Issues sometimes take place because the current market price of shares is considered to be too high, for example, over $20. By running a Bonus Issue, the number of shares in the company will increase, but the total value will remain the same, thus bringing down the price of the shares. A lower share price will make the shares more affordable to more people, therefore increasing liquidity.

For example, if an Investor held 1000 shares in Gadgets & Widgets Ltd and the shares were trading at $20, the holding would be worth $20,000. In a 1-for-5 Bonus Issue, the Investor would receive 1 new share for every 5 he owns. The share price will adjust to $16.66, calculated as $20 multiplied by 5, divided by 6. The amount of new shares issued will be 200 giving a total holding of 1200 shares @ $16.66 = $19,992 which is almost the value of the original holding, allowing for rounding.

Please note that the example given above is theoretical. The market will always determine the share price. Even in the case of a Bonus Issue, there may be other factors which will affect the price. For example, resignation of CEO may see Investors may lose faith in the company and the market could be flooded with shares which would make the price plummet if there are no prospective Investors (theory of supply and demand).


A process by which institutions participating in a float trade shares with each other in order to determine a final unit price, which can then be used as the basis to allocate shares to all applicants who applied for shares in a float.


An agent who handles Investors orders to buy and sell securities, commodities, insurance policies or other property. For this service a commission is charged which depending upon the broker and the amount of the transaction may or may not be negotiated.

This may include a broking firm or investment house that is an accredited participant of the NZX.

Broker transfer (On market transfer)

Electronic transfer of stock from one holder to another through a Broker. In this instance the Broker locates a buyer or seller through the Securities Market according to their clients instructions.


A Fee paid to Broking Firms for buying or selling of securities. The Fee is set by the Broking Firm and could be a percentage of the amount you invested.

Bull Market

A market where it is generally anticipated that the prices of securities will rise.

The opposite of bear market.

See also Bear Market.

Business Cycle

The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. The five stages of the business cycle are growth (expansion), peak, recession (contraction), trough and recovery.

Business Day

Hours when businesses are in operation. The conventional business day is 8.30 A.M. to 5.00 P.M Monday to Friday. This excludes all NZX non business days and public holidays.

Buy Back

The purchase by an Issuer of its own shares. When shares are bought back by the Issuer they are cancelled and no longer exist, therefore reducing the overall number of shares on the company’s register.

This may be done in an attempt to increase share price (less shares, increased market value – theory of supply and demand). An Issuer has the right to purchase their shares back from the Investors in order to reduce the Capital for a greater share in the profits, or to remove shareholdings that are not of a marketable parcel.

The purchase can occur either on or off-market.


A call option is the right to purchase a parcel of shares at a pre-determined price within a specific period of time. There will be an initial price paid for the shares. The Investor then owns part paid shares and the call option. At a later date (call date) the Investor will take up the call option and pay the remaining amount making the partially paid shares fully paid shares.

If a company is a no liability company, then the call is not enforceable, and the Investors are entitled to forfeit their shares as an alternative to meeting the call. If the company has limited liability, then the call is enforceable at law.

Call Notice

A letter sent to Investors requesting payment of calls.

Call Option

A contract which entitles (but does not require) its holder to buy a fixed number of shares (usually 1000) in an underlying company at a predetermined price at any time prior to or on the specified expiry date.


At times a cap is applied to a warrant at the time of issue which caps the upside potential of that warrant. This is usually fixed by the issuer and details are provided in the disclosure document.


Any asset or stock of assets capable of generating income. This can include funding in assets, funding for operation of a business, or assets such as property or shares.

Capital Conversion

Capital Conversion is when shares are moved between different trading and/or working classes on the system. An example of this is shares which are issued with restrictions and cannot be traded for 12 months from allotment. When the 12 month period expires, they will need to be transferred into a class where trading is enabled.

This is common place with Employee Share Plans.

Capital expenditure

Funds spent for the acquisition of a long-term asset. In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a capital expenditure, it needs to be capitalized; this requires the company to spread the cost of the expenditure over the useful life of the asset.

If, however, the expense is one that maintains the asset at its current condition, the cost is deducted fully in the year of the expense.

Capital Gains / Loss

The difference between the sale price of a capital asset and its cost.

Capital Growth

Capital growth is where an asset increases in value. Capital gain occurs when the growth of capital is sold at a higher price than the original purchase price.

Capital Reconstruction

Restructuring of an Issuer's issued capital structure. For example, when a $1.00 share is split into two $0.50 shares.

Capital Reserve

Profits retained in the business and set aside for specified purposes. This is not available for distribution as a dividend for:

  • Statutory reasons
  • Company constitution
  • Resolution of directors

Cash Covered

Cash covered is referred to as a derivatives position. For example, a written option contract where, cash is used by the option writer to meet their margin obligations.

Cash Extraction

Cash extraction is where investors extract cash from a portfolio while maintaining an equivalent level of exposure to the underlying securities. Investors can replace the shares in their portfolio with instalment warrants over the same shares.

Cash Flow

The amount of money, which flows in and out of a business, the difference between the two being the important number. If more money flows into a business than out of it, it is cash positive. If more money flows out than in, it is cash negative. Cash flow is regarded by many as the ultimate test of financial health.

Cash Issues

A new issue of securities for cash for the purpose of raising additional capital for the company. This can be a bulk offer of existing securities to new Investors, or an offer made to existing Investors in proportion (e.g. 1 new security for every 2 securities held) to their existing shareholding. It is usually issued at a discount to the market price.

Cash Settled Warrant

A cash settled warrant is where the warrant issuer settles via cash payment to the warrant holder. The cash payment is determined by the terms and conditions of the warrant. In some instances investors can choose cash settlement or physical delivery.

Cash Settlement

An expression used in futures and index options trading which applies when physical delivery is impractical and contracts are settled by attaching a monetary value.

Central Participant

The Participant, within a Participant group, designated as the source of the common settlement holding for the group.

Certified Copy

A certified copy is a photocopy of an original document signed by a Justice of the Peace or someone that is authorised to witness a Statutory Declaration.

It is signed to say that they have seen and can verify that the copy is a true and correct copy of the original document.

Chairperson (Chairman)

The person elected to head a board of directors.

Child Entity

An entity that is owned by a parent or holding company.


Types of listed securities that are differentiated by the level of voting rights shareholders receive. For example, a listed company might have two share classes, or classes of stock, designated as partly paid and fully paid.

Class of Options

Class of options are contracts in the same underlying security of the same type, which can be either call or put options.


A Client is;

  • Someone who employs or seeks advice from a professional adviser
  • A customer
  • Someone under the patronage of another, dependant

Closed End Fund

A fund which has a fixed number of issued shares traded on a stock exchange. Because the supply of shares is limited, they will rise and fall in value according to supply and demand just like ordinary company shares.

Closing Out

The selling of an option which has been bought in the same series.

Closing Purchase

The purchase of an option, by a writer, which has the same terms as an option which has previously been sold. This transaction terminates his/her obligations as a writer.


A legal entity regulated by the New Zealand Companies Office under the Companies Act.

Company Name

The complete name, as reported to the NZX of a listed company.

Company Options

Company options are options issued by a company over unissued shares.

They will have an exercise price, and an expiry date. For example, XYZ $1.00 expiring on June 30 2008, and are listed on the NZX until that date. Provided the share price at the time of expiry is above the exercise price, the option holders will exercise their option by paying the exercise price and be issued with a new share in the company, which will then rank equally with other ordinary shares.

Company Reported EPS

Companies report within their annual report the basic and diluted earnings per share (EPS) results.

Company Secretary

A person who is responsible for the record keeping of the company.


The process of ensuring that a company and its employees adhere to relevant laws, statutory regulations, codes and standards, legislative and contractual obligations.

Compounding DRP Participation

Compound DRP means that your partial participation will increase by the amount of shares you are allotted i.e. if you hold 1,000 shares and elect to participate partial DRP of 300 to compound, then if you are allotted 10 shares via the DRP, your partial DRP participation for the next dividend will be 310, unless you notify Link otherwise.

Compulsory Acquisition

During a takeover bid, Investors will be invited to part with a specific proportion of their holdings. Acquisition of over 90% of the shares from more than 75% of the Investors is required before a compulsory acquisition can occur.

If these conditions are met, the offerer can then compulsorily acquire the balance to mop up the shares belonging to non-acceptors (dissenters), including deceased estates and Investors who have disappeared.

Conditional Acceptance Level

It is the conditional level enforced by an Issuer for a corporate action to proceed. For example, in the case of buyback, the Issuer may impose that a certain % of holders must accept the buyback process or a certain % of shares must be accepted for buyback before the offer for buyback is withdrawn.


Price paid to purchase shares.

Consolidated Financial Statements

A combination of the financial statements of a parent company and its subsidiaries, presenting the financial position of the group as a whole. The statements report the combined operating results, financial position, and cash flows of two or more legally separate but affiliated companies as if they were one economic entity.


Consolidation is a form of reconstruction. It is the combining of a company’s shares (from a larger number of shares) into a smaller number of shares, each with a correspondingly higher market value. The total value of any Investor’s holdings is not affected by the consolidation. Sometimes consolidations are made to avoid a "penny dreadful" image. For example, converting ten 20 cent shares into one $2 share.

The opposite of a share split.


Rules governing a company.


An economic event, gain or loss, that is in the process of occurring or not occurring.

Contingent Liability

The possibility of an obligation to pay certain sums dependent on future events.

Contract Note

A written document, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note details the number of shares, all associated costs, and the type of security.

Contract Size

The minimum amount of a commodity or financial instrument which can be traded in a futures or option market. This is standardised to 1,000 underlying shares.

Contributing Shares

Shares on which only part of their par value (formerly the share premium) has been paid. For example shares may be issued with a par value of $1.00, of which only 50 cents has been paid, with a further 50 cents still owing. At the call date, the Investors of no liability companies can forfeit their shares instead of paying the call. Also known as Partly Paid Shares.

Contributing shares are similar to partly paid shares, with the exception that a date for the payment of the call date has not been set by the Issuer.


The movement of a futures price towards that of the underlying instrument as the contract date approaches.


The cancellation of certificates and recording of the shares in an uncertificated holding, or the change of class of Security (options, notes, etc) to another (fully paid).

Conversion Ratio

The number of ordinary shares obtainable on the conversion of one convertible preference share or convertible note. For example, a ratio of 1:5 means that every one share will be converted to five shares. This could include conversion of one employee share to five fully paid shares once escrow or loan periods have lapsed.

Convertible Debentures

Debentures are fixed interest securities issued by limited companies in return for long term loans. Convertible debentures carry an option at a fixed future date to convert the stock into ordinary shares at a fixed price. This option is compensated for by a lower rate of interest than an ordinary debenture.

Convertible debentures are attractive since they offer Investors the prospect of purchasing equity shares cheaply in the future, without sacrificing their Security.

For this reason, convertible debentures are issued at times when it is difficult to raise capital either by equity or fixed interest Security.

Convertible Debt Security

Security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder.

Convertible Notes

Convertible notes are financial securities issued to an Investor by a company in return for cash.

It is traded on the share market and normally accrues a fixed interest rate during its life. The notes give the holders the right at specified times to convert the loan to shares on a specific date or redeem them for cash. It differs from a debenture in that it offers the Investor the option of converting the loan at a later date into equity (shares) in the issuing (borrowing) company.

Convertible Redeemable Preference Shares

These shares have a specific date at which they are redeemable (i.e. exchanged for cash by the issuing company).

They are broadly similar to convertible notes, in that they may be converted to ordinary shares, though the holders of redeemable preference shares rank after note holders (but ahead of ordinary Investors) should the issuing company be liquidated or placed into receivership.

Convertible Securities

Security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder.

Corporate Action

A series of specialised processes that usually involve some kind of action being taken on each Investor's holding at a specified date. They may be carried out by the registry on behalf of the Issuer. Examples of Corporate Actions include Rights Issues, Bonus Issues, Dividends or other payments or offers under a Buy Back scheme.

Companies Act

An Act of the New Zealand Parliament dealing with nearly all aspects of companies. It replaced previous company legislation with effect from 1 July 1994. The purpose of the Act is:

  • To reaffirm the value of the company as a means of achieving economic and social benefits through the aggregation of capital for productive purposes, the spreading of economic risk, and the taking of business risks
  • To provide basic and adaptable requirements for the incorporation, organisation, and operation of companies;
  • To define the relationships between companies and their directors, shareholders, and creditors
  • To encourage efficient and responsible management of companies by allowing directors a wide discretion in matters of business judgment while at the same time providing protection for shareholders and creditors against the abuse of management power and
  • To provide straightforward and fair procedures for realising and distributing the assets of insolvent companies.

Cost of Carry

Costs incurred as a result of an investment position. These costs can include financial costs, such as the interest costs on bonds, interest expenses on margin accounts and interest on loans used to purchase a security, and economic costs, such as the opportunity costs associated with taking the initial position.


The annual rate of interest paid by the issuer of a bond until maturity.


Someone to whom money is owed. A company’s creditors are other companies, individuals, and perhaps the government to which it owes money in return for goods supplied, services rendered and taxes for which it is liable.

CSN (Common Shareholder Number)

Common Shareholder Number (CSN) is a 9 digit number that can be found on the top right hand corner of your holding statement and other shareholder communications


Meaning "with".

Cum (Dividend/

When a company announces a rights issue, existing shareholders get the right to buy new shares, usually at a discount to the current share price. When a share is cum rights, it means that it is offered for sale with any associated rights. When it is ex rights it is offered for sale without the rights. The share price of the shares will be higher cum rights than it will be ex rights.

Cum Balance

The part of an Investor’s holding that is cum i.e. the part, which will participate in a defined corporate action. The cum balance plus the ex balance must always equal the Investors record date (books close) balance.

Cum Dividend

The period between the declaration of a dividend and the last day to register. The new shareholder will be entitled to the dividend. Sold after this date the shares become 'ex div' and the dividend will accrue to the previous shareholder who has sold his shares.

Cumulative Preference Dividends

Dividends on cumulative preference shares that accrue as a commitment of the company if they are not paid in any year. Arrears of cumulative preference dividends must be paid before any dividends are paid to ordinary Investors.

Unless specifically stated to be non-cumulative, dividends on all preference shares are deemed to be cumulative.

Cumulative Preference Shares

A type of preference share. The term means that if any years preference dividends are not paid out (for example, due to lack of profitability), then all arrears must be paid off before payment of ordinary dividends is permitted.

Dividends on non-cumulative preference shares, however, are looked at only one financial year at a time and Investors have no protection against missed declarations.


Notes and coins that are the current medium of exchange in a country.

Currency Warrants

Detachable options in securities issues giving the holder the right to purchase additional securities denominated in a currency different from that of the original issue. The coupon and the price of the securities covered by the warrant are fixed at the time of the sale of the original issue.

Current Assets

Assets of a company which are regularly turned over including cash, work in progress and debtors. These are generally converted into cash with twelve months after the end of the financial year for the company.

Current Liabilities

Debts owed by a company which are due for settlement within 12 months. These include creditors and taxes due etc.


An entity or nominee holding that usually safeguards and maintains assets (such as shares) on behalf of Investors until a certain event occurs at which point the Investors gain full access to the assets.

Example includes Employee Share Plans where the shares are allocated to the custodian and not available to the employee until the shares are fully paid for.

Date Payable

The date on which the Issuer makes its dividend or interest payment to Investors.


Fixed interest securities issued by limited companies in return for medium to long term loans. Also used to refer to any title on a secured interest bearing loan. Debentures are dated for redemption (i.e. repayment of their nominal value by the borrower to the holder) between ten to forty years ahead but occasionally may be irredeemable.

Debentures are usually secured by a trust deed which spells out the terms and conditions of the fundraising and the rights of the debenture holders. The funds of the debenture holders are usually secured by a charge over the assets of the borrowing company.

Debenture interest must always be paid regardless of whether the company makes a profit. In the event of non payment, debenture holders can force liquidation and rank ahead of all Investors in their claims on the company’s assets.

Debentures shares are most appropriate for financing companies whose profits are stable and have substantial fixed assets such as property companies.


An obligation by one individual or company to pay a specific amount of money to another party.

Debt Capital

Money raised by selling bonds, the principal and interest on which must be repaid.

Debt Funding

The increase of liabilities to fund operations through the issuing of debentures or bonds.

Debt Security

A security such as a bond or note with specified interest, representing a loan which is repayable at some future date.

Debt-to-Equity Ratio

A measure of a Company's gearing (borrowing) which is calculated by dividing all financial debt by Investors' funds (equity).

Deceased Estate

The assets or holdings left behind by a person (Investor) at the time of death.

Default / Defaulter

A person (Investor) who failed to do what was legally required, usually referring to failure to pay a debt that has fallen due. This can involve owing an amount to an entity normally in the case of owning partially paid securities and not being able to make payment on a call notice, made by a Registry.

Deferred Shares

Deferred shares are inferior to a company’s ordinary shares in a defined way. For example, they may be shares which do not currently participate in dividends for a defined period of time, may be a non voting share, or may receive less favourable treatment in the event of a liquidation.

Delayed Delivery

Same as Deferred Delivery, but applicable to trades occurring on the New Zealand Stock Exchange.


The removal of a company’s shares from listing on the stock exchange. This may occur because the company has failed to comply with the exchange’s rules, or no longer meets listing requirements, for example it has been taken over.

Deliverable Warrant

The settlement by transfer of the underlying asset upon exercise and after the payments are made.

Delivery Versus Payment Settlement (DvP Settlement)

The irrevocable exchange of unconditional securities for unconditional same day funds to settle an obligation.

Delivery vs. Payment

The delivery of securities in exchange for an asset, usually money. One of two methods for the delivery of securities, the other being delivery vs. receipt.

See Delivery vs. Receipt

Delivery vs. Receipt

The delivery of securities in exchange for a signed receipt for the securities. One of two methods for the delivery of securities, the other being delivery vs. payment.

See Delivery vs. Payment


The measure of the rate of change of an option or warrant's price compared to the change of price of the underlying instrument.


The disintegration of a company into separate operations in the expectation that this will enhance performance.


Demutualisation involves changing from a mutual company to a shareholder owned company.

Members are issued shares in exchange for their membership rights. Demutualisation separates the rights as a member from the investments or other rights as a policyholder.

Depository Interests

Depository Interests are the debt/bearer component of Foreign Depository Interests and apply to both foreign and domestic securities.


A financial instrument or product that derives its value from the price of another security, liability or index. For example, options, swaps, forwards, futures contracts or warrants. A derivative is known as synthetic.

Designated Account

A standardised descriptor used to provide further identification for an Investor's account. For example, trusts must be registered in the name of the trustees, not the name of the trust. The trustees are registered as joint holders with the trust as a designated account.

Diluted Earnings per Share

Earnings per share adjusted for the existence of options and convertible securities. Diluted earnings should always be used if these are lower than undiluted earnings.

Direct Credit Instruction (DCI)

Instruction given by the Investor stating the account that their interest and dividends are to be paid into.

Direct Deposit / Credit

A service whereby a Investor's dividend, interest or trust distribution payment is credited directly into the Investor's bank account.


Persons elected by Investors to collectively be responsible for the management, operation and implementation of corporate objectives. The directors have legal, moral and professional obligations to run the enterprise for the benefit of all Investors. Directors report to the Chairperson.

A public company must have at least three directors; a proprietary limited company must have at least two.

An executive director is a director who is also employed by the company.

A non-executive director is not employed by the business.

Disclosure Document

A booklet outlining the risk factors associated with an investment and providing full information for an investor.


(a) In the case of Link, discount is the percentage discount, to the current market price, at which Dividend Reinvestment Plan (DRP) shares are allotted, if applicable.

(b) The excess of the nominal, face or par value of a Security over its price. It is the amount by which a Security sells below its net tangible asset backing. Securities are traded at a discount on the assumption that the buyer will receive face value when the securities mature. It is the opposite of premium.

Dishonoured Cheque

Due to insufficient funds in the drawer's account, a bank will fail to process (honour) the cheque.


During a takeover, Investors in the target company are asked to accept or reject the offeror’s bid. Investors who reject the takeover offer are known as dissenters or dissenting Investors.


The payment of a dividend by a company out of its profits. These are allocated on a per unit basis.


For an Investor: The process used to describe how an Investor can have a specified number of units removed from their holding and placed under custodial control. This is typically due to some breach of rules such as owning an insufficient level of shares by value or purchasing shares that take the foreign ownership limit for a register or individual holding over its maximum.

For a company: The liquidation or sale of parts of a firm. The disposal of an asset by sale. The selling off of an investment. In effect, divestment is the opposite of an acquisition or merger.


Payment by companies to the Investor representing the after tax earnings. Payments are based on an amount (usually cents) per share. Dividends may be imputed, not imputed, or partially imputed.

Dividend Amount

Value of last quarterly cash dividend or the number of shares an investor receives for each share owned in a stock dividend.

Dividend Income

The annual dividend income per share received from a company divided by its current share price. Put simply - how much income are you getting out of the company for the capital you've got locked up in it?

Dividend Rate

The amount of dividend payable per share.

Dividend Reinvestment Plan (DRP)

A scheme offered by many Issuers to their Investors which enables Investors to receive shares rather than cash for dividends declared by an Issuer. These shares are usually issued at a discount to the current market price and no brokerage is paid.

Dividend Type

Dividends can be classified as either Interim or Final. A final dividend occurs at the end of a company’s financial year and any in-between are generally classified as interim. There are cases when special dividends occur; these are irregular payments. For further information on dividends refer to the company announcements.

Doubtful Debts

An amount owing to an entity at the end of an accounting period that is unlikely to be received. They would be recorded as an adjustment in the profit and loss account at the end of the period.


Income from a company over a specific period. This could be expressed as either "gross" or "net".

Colloquially "net" is referred to as the "bottom line" because earnings are the entry at the bottom of the income statement after all expenses and costs are deducted.

Earnings Before Interest and Tax (EBIT)

An indicator of a company's financial performance calculated as revenue minus expenses excluding tax and interest. Also referred to as operating earnings.

Earnings Per Share (EPS)

Earnings per share are the measure of the earnings that are attributable to each equivalent ordinary share over a twelve-month period. It is obtained by dividing a company’s net profit (less the preference dividends) by the total number of shares on issue.

Adjustments are also required if the company has made any share issues or repaid any capital during the year, and also if convertible securities or options exist.

Employee Share Plan (ESP)

Employee Share Plans relates to schemes established by Issuers that allow employees to take-up a shareholding in the Issuer as part of remuneration packages. Such shares are usually at discounted rates and may be offered to the employees in different forms such as being based on a loan or based on contributions made by the employer and employee.


Investors are offered an entitlement to purchase additional securities in a new issue on a specific date (record date).


An investment that involves a variable performance based rate of return. In sharemarket terms, equity is often used as a synonym for shares and represents part-ownership of a company. It is distinct from fixed interest securities such as bonds and debentures.

From a business perspective, equities represent the total interests of parties in the assets of that business entity. Lenders and creditors have a 'specific entity', and owners have 'residual' equity.

Equity Capital

Capital raised by a company through issuing shares. An alternative to debt funding.

Equity Funding

An investment that combines a life insurance policy with a mutual fund. The fund shares are used as collateral for a loan to pay the insurance premiums. Equity funding gives the investor the insurance protection benefits along with potential investment appreciation.

Equity Security

An equity such as the following:

  • A share;
  • A unit;
  • A right to a share or unit or option;
  • An option over an issued or unissued Security;
  • A convertible Security; and

An equity warrant is an option to buy the common stock of the debt issuer at a predetermined price on or before a predetermined expiry date.

Equivalent Fully Paid Shares on Issue

The equivalent fully paid ordinary shares on issue takes into account the number of actual fully paid shares at period end as well as the number of potential fully paid shares.

Contributing, new, and deferred shares are treated as fully paid; options and convertible notes are treated as increasing the number of fully paid shares by the number of shares which will be created upon exercise of the options or conversion of the convertible notes.

Equivalent Fully Paid Weighted Average ('000)

The average number of equivalent fully paid ordinary shares. The weighted method gives shares that were in existence for the entire period a weight of 1 and other shares a weight of less than 1, in proportion to the period they were in existence. The weighted average capital also reflects any dilution that occurred during the period.


Refers to units (shares) allocated to Investors that are subject to restrictions such as not being able to be traded for a specified period of time.


All assets owned by an individual at death, to be distributed according to the individual's will (or a court ruling if there is no will).

European Style Options or warrants that are only exercisable on their expiry date.

See also American Exercise (Without something). For example, shares bought ex rights or ex dividend do not entitle a purchaser of shares to those benefits, which remain with the seller.

Ex Balance

Latin for "without". Without something, for example, shares bought ex dividend do not entitle a purchaser of shares to those benefits. Those benefits remain with the seller.

Ex Bonus, Ex Bonus Date

Shares sold ex bonus entitle the seller to retain the bonus shares being issued. The ex bonus date occurs seven business days prior to and including the Record Date.

The Record Date is the date on which the company closes its books to determine which Investors are registered to receive the bonus shares.

The share price may fall on the ex bonus date to reflect the dilution effect as the company's assets are spread over a greater number of shares on issue.

Ex Date

The date on which shares change trading from "cum" to "ex" status. It is usually the fourth business day prior to the record date. It is the first day that the share trades without the buyer qualifying for the dividend.

Ex Dividend

Ex means "without". Purchasing shares ex-dividend means that the seller is entitled to the current entitlement (for example, dividend, bonus, rights) that is currently attached to the shares being traded and not the buyer. For example, an Investor buying shares ex-dividend will not receive the dividend on those shares. It is the opposite to cum.

Ex Dividend Date

The "cut-off" date for receiving the next dividend. From this date, new shareholders will not participate in the next dividend. The price of a share will typically fall by the value of the dividend on this date, as it will no longer carry an entitlement to receive this latest dividend.

Ex Rights

A share, which is trading such, that buyers do not receive the right to a new issue, usually resulting in a lower price.

Exchange Traded Fund (ETF)

Open ended listed investment fund, that combines some of the characteristics of shares and managed funds.

Executive Director

A director who is also employed full time by the company.


A person charged with winding up a deceased estate in accordance with a valid will. The executor is the person who administers the estate, but can also be the beneficiary to the will.


When an option or warrant holder takes up his or her option to buy or sell the underlying instrument (for example shares, commodities, an index etc) he/she is said to exercise the option or warrant.

Exercise Date

The date at which the taker of an option has to settle the amount for buying the underlying security.

Exercise Price

The price at which an option or warrant holder can buy or sell the underlying instrument (for example, shares, an index, commodities etc). Also known as the strike price.

Expiry, Expiry Date, Expiration

The last date an option can be traded or exercised.

Extraordinary Items

Costs which affect a company's profit (or loss) which are not associated with normal activities and which are not expected to recur.

Fair Value

The theoretical price at which a futures contract should trade to be equivalent to the purchase price of the underlying instrument. In options trading the term is also used when referring to intrinsic value.

Final Dividend

Dividend paid after the conclusion of the company’s financial year when the profit for the year is known.

Financial Institution

An institution which accepts funds from the public and reinvests in bank deposits, bonds and stocks etc. These include banks and insurance companies.

Financial Period Ending

Normally, the financial year ending, as released in the company's annual report but can also apply to shorter and half-yearly financial periods.

First Allowable Settlement Date

The earliest Settlement Date for transactions in securities issued as a result of certain Corporate Actions.

Fixed Interest Security

Usually a reference to a fixed interest security - a debt security which offers a fixed rate of interest throughout the life of the investment. The price of a fixed interest security will fluctuate as market rates change, and also as the time left to maturity shortens.

Fixed Period Settlement

A settlement which takes place on a fixed date related to the transaction date under the rules of the market. Presently, the fixed period settlement date is T+3.

Foreign Individual Ownership Threshold (FIOT)

This is the percentage of shares on issue that any one foreign Investor may hold.

Foreign Ownership Restrictions

These are restrictions specific to each Issuer. They outline restrictions regarding such things as the percentage of shares on issue that any one foreign Investor may hold or that all foreign Investors on the register may hold in total, and define rules pertaining to treatment of breaches of these restrictions.

Foreign Ownership Threshold (FOT)

This is the percentage of shares on issue that all foreign Investors on the register may hold in total.


The forfeiture of shares may occur when an Investor is unwilling or unable to pay a call made by the Issuer. Investors with shares in a no liability company have the right to forfeit their shares by not paying a call. Forfeited shares may be auctioned or cancelled.

Franked Dividend

An arrangement in Australia that eliminates the double taxation of dividends. Dividends are dispersed with tax imputations attached to them. The shareholder is able to reduce the tax paid on the dividend by an amount equal to the tax imputation credits. Basically, taxation of dividends has been partially paid by the company issuing the dividend.

Franking Credit

A franking credit is a tax credit to a person owning shares for the tax that has already been paid by the issuing company on their dividends. These are also known as franking credits.

Fully Franked Dividend

Dividends paid on shares where the company has paid all the company tax paid on the income, which went to the dividend. The Investor will receive credit on the full amount of the dividend and will not be required to pay tax on the dividend received.

Fully Paid Shares

Ordinary shares where there is no uncalled liability (i.e. the full nominal value has been paid).

Fund Manager

A City professional whose job is to decide how fund money is invested.

Fund managers work for investment trusts, unit trusts and pension funds, and have considerable influence in the financial markets because of the weight of money behind them. If they decide to move funds out of a sector, or out of a company in a sector, their decision can affect the price of shares in a way that the decisions of private investors rarely do (except for the smallest stocks).

Deciding which assets (shares, bonds, gilts, cash) the fund should allocate its money to is known as asset allocation.

Some fund managers run active funds which aim to beat the market index by picking the best performing shares. Others run passive funds, which aim to match the performance of an index by tracking it. The management fees charged by active funds are higher than for passive funds because the fund manager has to do more work.

GICS (Global Industry Classification Standard)

GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). A company is assigned to a single GICS sub industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI.

Revenues are a significant factor in defining principal business activity, however, earnings analysis and market perception are also important criteria for classification.

Good Value Claim

A claim made by one party for an error to be fixed by the party responsible.

Government Bond

A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.

HIN (Holder Identification Number)

12 characters usually starting with an ‘X’ followed by an 11 digit number. A HIN is a product of a broker sponsored holding and will be needed to be quoted in all dealings with your broker and registry.

Important note - your HIN identifies you as the owner of your securities and should be stored securely.


Units held in a particular Security by an Investor.

Holding Company

A company that owns shares in a "subsidiary company". A holding company may or may not run part of the business of a subsidiary company and is the "parent company" of a group of companies.

The subsidiary company is either a wholly owned subsidiary, where 100% of the shares are held by the holding company, or a partly owned subsidiary, where more than 50% but less than 100% of the shares are held by the holding company and is controlled by a board of directors.

Other companies in which significant holdings are held and where some influence is exerted by the holding company are called "subsidiary companies".

Holder Number

A Holder Number commences with an ‘R’ and is followed by a 9 digit number.

Hostile Takeover

An intention by one company to take over another, where the target company’s directors are vehemently opposed to it.

Imputation Credits

To avoid double taxation of dividends the government introduced imputation credits. Any company that does business in New Zealand pays tax on any profits they make. Listed companies pass this tax credit to shareholders by way of imputation credits. Dividends can be fully or partially imputed or carry no imputation at all.


The inability of a person or company to settle debts when they become payable.

Instalment Warrants

Owning an instalment warrant is similar to having a share on lay-by only better. This is simply because instalment warrants enable investors to take advantage of any dividends or franking credits associated with a share without having to pay for the share in full. Because the instalment warrant costs a fraction of the price of the share and investors are the beneficial owner of the share for the life of the warrant, yields are greatly enhanced.

Instalment warrants differ from classic equity trading calls in that they usually are longer dated. The maturities of instalment warrants usually range from 12 to 18 months but can extend up to 10 years.

Their exercise style can be either American or European. In general, the aim of the purchaser of an investment warrant is to own the underlying share at the end of the warrant’s term, or at least participate in the return on the underlying share over the long-term.

Interim Dividend

The dividend declared before annual earnings are established. Some companies pay two dividends per year, the interim dividend and the final dividend. The interim dividend is usually the smaller of the two.

Issued Capital

Share capital or Issued capital refers to portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or equivalent item of capital value. For example, a company can set aside share capital to exchange for computer servers instead of directly purchasing the servers from existing equity.

Issued Shares

This is the number of authorised shares that are actually “issued” out to the shareholders.


A company or public sector entity which has shares, bonds or other security listed on a stock exchange.

Issuer Sponsorship and Issuer Sponsored Holdings

An issuer sponsored holding is one that is sponsored by the issuer and not by a CHESS participant. Statements are sent to securityholders at the end of a month in which changes have occured to the holding.

Joint Account

Any account owned by two or more people.

Joint Tenancy

The ownership of land by two or more persons collectively. On the death of one, the ownership passes to that person’s survivor or survivors, as distinct from a tenancy in common. A joint tenant is one of the co-owners and is not a ‘tenant’ in the sense of ‘lessee’.

Joint Venture

A business arrangement between two or more parties (such as companies or countries) to achieve a mutual objective. All parties have partial control. It is a common way for companies to collaborate on a project or projects without engaging in a full-scale merger. A joint venture is similar to a partnership except that it is not necessarily a continuing one.

Jointly and Severally

A type of agreement that establishes the responsibility for selling the securities in an underwriting. Members of an underwriting group agree to buy a certain amount of the new issue and to share liability for the obligations of the other members of the group.


Lapse refers to the removal of shares from the register as a result of an Investor not fulfilling their obligation with respect to the shares. Examples include the exercise of options, where the Investor decides not to undergo the exercise. The shares left over after all option exercise processing is complete would lapse.

Last Close

This is the price per security at the close of business the previous day.

Letters of Administration

Authority granted by a court to a person to wind up the estate of a deceased person who did not leave a valid will.


The right to hold property belonging to another person as security for the payment of some debt, or the performance of some obligation. For example, the right of the broker over shares until a buying client has paid for them.


The winding up of a company by a liquidator. The company’s assets are converted into cash and paid to creditors and, if there is any surplus after that, to Investors. The process is akin to the administration of a deceased estate and to bankruptcy, however, a company may not be declared bankrupt under the Bankruptcy Act, but must be wound up in accordance with the Corporations Law.

Most liquidations are compulsory and relate to insolvent situations. However, liquidations can also be voluntary and represent a reorganisation of a group structure. Defunct companies with no assets or liabilities can be struck off without being formally liquidated.


A person appointed, usually by a court, to conduct the winding up of a company and the liquidation of its assets.

Listed Company

A company whose securities have been admitted to the stock exchange.

Listed Stock

Approved securities for admission to the Official List and for trading on the Stock Exchange. Listed securities are usually more liquid than unlisted ones owing to the existence of the exchange. Also known as Listed Securities or Tradeable Securities.

Listing Date

The date that an Issuer lists on the stock exchange, where their shares are available to be bought and sold by the general public.

Live Class

A class of security which is tradeable on the New Zealand Stock Exchange.


The act of lodging or process of being lodged.

Market Capitalisation

The worth of a company as set by the stock market. It is calculated by multiplying the total number of shares on issue by the price per share.

Market Participants

Market participants are those companies that meet the NZX's requirements. They are more commonly referred to as Broker Firms.

Market Price

In the context of the New Zealand share market, Market Price represents the last reported price to buy or sell a security on the open market. Alternatively, it is the highest price, which a buyer willing, but not compelled to buy would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Market Value

The current value of an item or security, as opposed to its book value.

Marketable Parcel

Marketable Parcel, is the minimum amount of securities of an Issuer that can be held.


A notation placed upon a transfer indicating that there is a share certificate held by the Share Registry to support the transfer.

Marking Number

A number used in tracking bonds and marking certificates.


The redemption date; the date on which a fixed interest security is due to be repaid by its Issuer.


The joining of two or more identical shareholdings.


A form of corporate restructuring in which two (or more) companies combine all or part of their operations. Unlike takeovers, mergers are usually negotiated by the management of the companies concerned. A merger usually implies that the companies (or operations) are roughly equivalent in size.

Net Assets

The total assets of a company (current assets plus fixed assets) less its current liabilities.

Net Current Assets

Current assets minus current liabilities; also defined as working capital.

Net Profit

The gross profit of a company (total turnover of products sold less costs to purchase or manufacture) less all other expenses. When net profit figures are quoted, the author usually makes it clear whether the figure is before or after tax. In company accounts, the word 'net' is often dropped, so that you simply have 'Profit before tax' and Profit after tax'.

Net Tangible Asset Backing (NTA)

The net worth of a share, the theoretical value of the net assets attributable to each ordinary share on issue. It is calculated by dividing the estimated value of the company (total assets less liabilities) by the number of shares on issue. A company can have poor earnings per share rate, but still have solid asset backing.

Nil Paid Rights

Rights (entitlements) that have not been exercised (paid for) by the Investor.

Nominated Proxy

A person appointed to vote at a meeting on behalf of another Investor.

Non Ranking Class

A class of security that does not rank equally with ordinary shares.

Non Renounceable Rights

A rights offer that may only be taken up or forfeited, and cannot be traded on the market.

Non-Tradeable Balance

Securities that cannot be bought or sold on the stock market.


A loan made to a company at a fixed rate of interest with the right to be either redeemed (i.e. repaid by the company) for cash or converted into ordinary shares at a predetermined date or within a certain period.


A noting of information against an Investor indicating some special circumstance. For example, a power of attorney, notification of death of a beneficiary, noting of incorporation for companies.

NZX Code/Trading Code

A unique code used by the NZX to identify listed companies.

NZX Listing Rules

The NZX Listing Rules govern the procedures and behaviour of all NZX listed companies and listed trusts.

Only public companies and public trusts are permitted to be listed on NZX. A public company (or trust) is one in which any member of the general public can acquire shares (or units) and there are no restrictions on the maximum number of shareholders (or unit holders).

In addition to prescribing pre-requisites for listing, the Listing Rules require that listed companies and trusts report announcements to NZX to keep the market informed of their activities and report profit results and other financial information within specific deadlines.


NZD = New Zealand Dollar.

The 3-letter international currency code is normally the 2-letter country code (NZ=New Zealand) followed by the first letter of the country's currency name (D=Dollar).


In the stock market, offer means that a seller is willing to sell a share at a given price.

Offer Period

In relation to a Takeover Bid, the offer period is the period for which offers under the bid remain open, however in relation to a Scheme, the offer period is from the date an announcement of intention to propose a Scheme is first received by the Exchange until the date on which the Scheme is effected.


Offeror can be:

  • The Issuer making the offer to Investors or potential Investors
  • The party making a bid in a takeover.

Off-Market Buyback

An Off-market Buyback is when an Issuer wishes to buy back its own shares from Investors, but will approach them personally (by mailing) as opposed to making an announcement to the market (On-market Buyback). An Issuer will decide to buy back shares in an attempt to increase share price and in some cases to reduce the number of small Investors on the Register.

When shares are bought back by the client they are cancelled and no longer exist, therefore reducing the overall number of shares on the company’s register.

Off-Market Transfer

Relating to a transaction, such as moving securities from one holding to another without using a broker outside a formal market. Off-market transactions are conducted through negotiation rather than an auction system.

On-Market Buyback

An On-market Buyback relates to the Issuer taking the Buyback offer to the market, as opposed to an Off-market Buyback, which only approaches the existing Investors.

On-Market Transfer (Broker Transfer)

Electronic transfer of securities from one holder to another through a Broker. In this instance the Broker locates a buyer or seller through the Securities Market and act in accordance with their client's instructions.


A security, which gives its holder the right but not the obligation to acquire a share in a company at a specified price on a stipulated date or, sometimes, at any time up to a maximum date. An option which is not exercised by the latest possible exercise date lapses and becomes worthless.

Options are usually transferable and can be traded rather than used as a means to obtain the underlying security. An option to buy is a call option. An option to sell is put option. One to buy or sell is a double option.

Ordinary Shares

The most common class of security, which carry voting rights and entitlement to dividends. Ordinary shares form the bulk of a company’s capital. All companies listed on the stock exchange have to have ordinary shares. They may be fully paid or contributing.

If the company is wound up (liquidated), ordinary Investors generally rank behind preference Investors and secured creditors, including debenture holders. They also rank behind secured creditors for dividend payments.


This is a situation in which the value of applications received for a new share issue, exceed the amount available to be allocated. In share issues, oversubscriptions are not usually accepted and allotments may be scaled back and are made at the discretion of the company. In fixed interest issues it is common for a specific level of oversubscriptions to be accepted.

Paid Rights

Nil Paid Rights that are transferred to paid rights when the Investor makes their payment for the nil paid rights. This allows the registry to identify Investors who have paid for their rights and those who have not, so that the short fall can be easily determined when the issue closes.

Paid Up Capital

The portion of a company’s shares already issued which are actually paid up. In other words, the subscribed capital less any amounts yet to be called (and also less any calls in arrears).

Par Value

Nominal or face value that applies to fixed interest securities and which was formerly attributed also to each share. Prices in excess of a par value are said to be at a premium. Prices below a par value are said to be at a discount.

Parent Security

An existing security. For example, during a bonus issue, Investors who have holdings of the existing security (i.e. the parent security) will be allocated bonus shares (depending upon the terms of the bonus issue).

Pari Passu

Ranking equally. For example, in a new issue of shares which carry equal rights with existing shares they are said to rank pari passu.

Participating Dividend

A dividend paid to preference shareholders in addition to the normal preference dividends payable.

For example, Preference shares in XYZ Ltd receive a fixed 10c dividend. One year, the board announces a 12c dividend on all shares. The 2c premium over the preference dividend is known as the Participating Dividend.

Participating Preference Shares

A type of preferred stock that gives the holder the right to receive dividends equal to the normally specified rate that preferred dividends receive, as well as an additional dividend based on some predetermined condition.

The additional dividend paid to preferred shareholders is commonly structured to be paid only if the amount of dividends that common shareholders receive exceeds a specified per-share amount.

Partly Paid Shares

These are shares, which have been issued with only a portion of the nominal value paid on application. The outstanding money is payable in one or more calls, at times set out at the time of issue, in the terms of the issue, specified by the Issuer. Similar to Contributing Shares.

Payment Instruction (PI)

Banking details (direct credit or third party) supplied to the registry by the Investor instructing payment of dividends.

Payment Rejections

After (Dividend) Payments have been carried out, there are some support functions which follow.

These functions include dealing with payment rejections where the bank has rejected a direct credit payment, replacing cheques which have gone astray in the mail and reconciling the amounts paid to Investors with the amounts drawn from the Issuer's bank account.


Where a company makes an allotment of shares, debentures, etc directly to new investors or large institutions rather than existing investors.


Concise statement of course of action at the corporate level.

Pools of Shares

Allocating groups of shares for different groups of Investors (for example, institutions, general public) in a Corporate Action.


The collection of investment holdings of a particular Investor usually with reference to its composition. That is, the mix of different classes of securities, such as bonds, property, shares and cash, or if in a single asset class, the mix of different sectors and stocks.

Power of Attorney

A legal document granting authority to another individual or company (the recipient) to act on behalf of the person granting the authority (donor).

Preference Shares

Preference shares are limited to a fixed dividend but have priority over the ordinary shares in regard to a company’s assets in the event of liquidation. They rank above ordinary shares, but below creditors and debenture holders, for claims on assets and dividends.

They can take various forms, for example, with or without cumulative dividend entitlements, redeemable or irredeemable, convertible or non-convertible.

Price Earnings Ratio (P/E Ratio)

It is commonly used to measure how attractive a share is to Investors, and to compare shares in one company with another. It shows the number of times the share price covers the company’s earnings per share (EPS). The lower the ratio relative to the average of the sharemarket, the lower the (market’s) profits growth expectations. It should be noted that dividing a historical earnings figure into a current market price could be misleading.

Market price of shares / Earnings per share = P/E Ratio

Principal Activities

The principal activities of a company as reported in the annual report.

Pro Rata


Pro Rata Issue

Offered on a pro rata basis within a specific class to all holders of those securities.


Authority granted by a court to a person (the executor) to wind up an estate of a deceased person.


Set of steps outlining the tasks involved in performing a function or activity in a process.


Series of activities that take place over time and have an identifiable purpose or result. Usually involves more than one department or team.


In common usage it is net profit after tax and minority interest. More specifically, it is revenue less any costs. There are usually a number of different measures of profit such as operating profit, earnings before tax, and pre-tax profit.

Property Trust

A type of collective investment (investors pool their money together and a professional manager operates the scheme) which invests in residential or commercial properties.

Property Trusts

A property investment vehicle that in the ordinary course of business invests in commercial office buildings, retail shopping centres, industrial buildings and other investment property for the purpose of earning a rental income and long-term capital growth for investors.


A legal document issued when a company proposes to raise funds from the public. It invites applications or offers to subscribe for securities of an Issuer or trust. The content of a prospectus is subject to the regulations of the Stock Exchange and the provisions of the Securities Act and Companies Act.

A prospectus provides the background, financial status and management status of the company or fund. It must be made available to all interested Investors in advance of their investment, when an offer is made to the public.


A written authorisation given to a person (the donee) to act on behalf of an Investor (the donor), especially in regard to attending and voting at an Investors meeting. The proxy form may be personalised and bar-coded for subsequent processing of votes and attendance registration purposes.

Proxies generally are accepted up to 48 hours prior to the meeting.

Fund management agreements often delegate the authority to the fund manager to exercise proxy votes on behalf of the client.

Public Company

Public companies are usually owned by a large number of Investors. They can issue shares and debentures by way of public issue and there are usually no limitations on the transfer of shares.

Put Option

A contract which gives the Investor the right (without the obligation) to sell a fixed number of shares (usually 1000) at a fixed price on or before the expiry date.

Put Warrant

A warrant which gives its holder the right to sell an underlying instrument (e.g. a share), and which would therefore normally be used by an investor who thought the price of the underlying asset was due to fall.


Often referred to as bid asked, or quote. The bid is the highest price anyone has indicated that he or she will pay for a security at a given time, and the asked is the lowest price anyone will accept at the same time. Also known as the bid offer.


One number or amount considered in relation or proportion to another. In oscar, the ratio is shown as Ratio Held: Ratio Given.

For example, if for every 2 shares held the Investor is entitled to purchase one additional share, the ratio would be 2:1.


A person appointed, either by a court or by a creditor to take charge of the affairs of a company (which has run into financial difficulty) until its debts are paid. The company is thus in receivership.


The condition of a company that has had a receiver appointed to administer it. The receiver’s responsibility where he/she is appointed by a creditor, is to realise the belongings of the person or company and try to pay off the debts of the Securityholder.

Unlike liquidation, receivership does not necessarily lead to cessation of the company’s business. The receiver may allow for the company to continue trading.


A payment list (mostly for dividend payments) is checked to see which cheques have or have not been presented to the Issuer’s bank for payment. This also involves the replacement of lost or stale cheques and the preparation of unclaimed money returns.

Reconciliation is also performed at the time of an issue of shares to ensure that application money for the number of shares allotted has been received and banked, and that the computer has recorded the correct total of shares allotted.


A change to the existing capital structure of a company. An Issuer may adjust its capital by reconstructing its shares into units of greater or lesser par value. This includes share splits, consolidations, capital reductions (partial repayments), schemes of arrangement and name changes.

Record Date

The date on which the Issuer closes its register for the determination of eligible Investors for the current dividend or interest payment or any other Corporate Action. Shares purchased after the record date do not participate in the dividend or interest payment. It is also known as a books close date.


Paying off or cancelling a debt. For example, government bonds are redeemable at face value upon maturity. The government pays you the lender, your money and redeems its debt.


A record, which holds the details of shares, issued to Investors for a specific Issuer. There is usually only one New Zealand register for each Issuer. Some Issuers also have overseas registers when they are listed in foreign countries such as Australia.

Registrable Title

Only a legal entity is permitted to be registered as a holder of securities. A legal entity is an individual person, a joint holding of up to three holders, a body incorporated under the New Zealand Companies Law or overseas equivalent.


The organisation that maintains a company's securities register. For example, Link Market Services Limited.


The place where the maintenance of the register takes place. Most frequently this is the office of a professional share registrar.

Related Company

Company related through common ownership.


When shares are moved form one stock exchange to another for the purpose of trading, for example New Zealand to Australia. This is sometimes called a shunt.

Renounceable Rights

An offer issued by a corporation to shareholders to purchase more shares of the corporation's stock (usually at a discount). Renounceable rights have a value and can be traded.


Renunciation occurs when an existing Investor sells entitlement to shares in a new issue to another person. Renunciation is the act of renouncing entitlements from a share issue to a purchaser willing to pay for the transfer of rights.


An amount of tax-paid profits, or other surpluses separately designated in Investors' funds as being set aside for a particular or general purpose, or arising from a particular source. The profit or surplus set aside may be prohibited by statute from being distributed as a dividend, or the directors may intend that the amount is not available for distribution at least in the near future.

The term also applies to the excess of a provision over that reasonably necessary for the purpose and to surpluses arising on the upwards revaluation of non-current assets. Sometimes all accumulated profits and surpluses are generally described as reserves.

Reserve Capital

That part of the capital of a business that has not yet been called up. It is thus a reserve, which can be drawn on in case of need.


An official document representing an action on the part of the board of directors of a corporation.

Retail Investor

An individual who purchases small amounts of securities for himself/herself, as opposed to an institutional investor. Also called individual investor or small investor.

Returns / Return on Investment (ROI)

The return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. It is calculated as the ratio of the amount gained (taken as positive), or lost (taken as negative), relative to the basis.

Revenue Earnings

What a company makes in monetary terms from its business for goods and services supplied by it during a financial year. It is also referred to as "revenue from operations", "turnover", "operating revenue" or loosely known as "sales".


The entitlement given to existing Investors to subscribe for new shares in the Issuer at a specific price and by a specific date. Rights are issued pro rata to Investors and may be renounceable (able to be traded) or non-renounceable (non-tradeable).

Rights Issue

An offer of additional shares to existing Investors at a pre-determined ratio to registered holders as at the record date. Normally Investors do not pay brokerage or stamp duty. The decision to take up the entitlement is optional.


During repayment of funds for securities that have a finite life (such as debentures and convertible notes) Issuers may offer holders the option to roll over the maturing security. The security (debenture or loan) is replaced by a further security (debenture or loan) by negotiation with the party to whom the money is owed.


Scaleback is the Corporate Action used to scale down the number of shares or rights an Investor may be entitled to. This occurs when an Issuer has oversubscribed in an issue of shares, and may need to scale down the number of shares issued per Investor. This scaleback is at the discretion of the Issuer.

Schemes of Arrangement

Schemes of arrangements are legal arrangements between companies and their Investors or creditors to vary the rights of the parties, subject to the consent of a court. Some schemes are used to effect compromises between debtors and creditors. Others are used to effect capital repayments or other reconstructions. Schemes affecting several companies can be used to effect mergers.


An independent observer that monitors the proceedings during an annual general meeting to ensure that they have complied with legal requirements and company policy.

Secondary Market

The trading of shares amongst investors which does not involve the company itself. When people talk about trading on the stock market, they are generally referring to the secondary market, which involves brokers, market makers and an exchange providing a technical platform for trades to take place. The companies and their shares are the subject of the trading, but they are not directly involved as participants.

The primary market refers to the situation in which a company sells newly issued shares to investors, possibly in an IPO, or places them with institutions.


The paper right to a (generally tradeable) asset. The term is frequently used as a loose label to refer to all shares, debentures, notes, bills, government and semi-government bonds etc, which are traded on the stock exchange.

An asset pledged to ensure the repayment of a financial obligation (e.g. loan), and forfeited in the event of default on that obligation.


A person (which can be an individual, partnership or company) who buys a portion of a public or private company’s capital. By doing so that person becomes a shareholder in that company’s assets and receives a share of the company’s profit in the form of dividends.

Service Level Agreement

An agreement between Link and the Issuer regarding the services available in the Standard Registry Agreement and the performance measurements agreed upon for selected services.


The completion of a transaction, whereupon securities and, where appropriate, corresponding funds are transferred.

Settlement Date

The date on which the final settlement of securities transaction takes place and the final payment is made. It is also referred to as T+3 as the settlements must occur on (or prior to) the third business day after the date of the transaction.

Severally But Not Jointly

i) A type of agreement that establishes the responsibility for selling the securities in an underwriting. Members of the underwriting group agree to buy a certain amount of the new issue severally but do not agree to joint liability for shares unsold by other members of the group.

ii) More generally, when members of a group agree to certain obligations individually, but do not share responsibility for the obligations of other members of the group.

Share Certificate

The physical document recording ownership of shares. It contains an identifying number and states that the person named is the registered holder of securities. Certificates are no longer in general use and are also known as Scrip.

Share Purchase Plan (SPP)

Share Purchase Plans may be offered to Investors by some Issuers. The SPP allows Investors to top-up their holdings according to specified rules. These shares are usually offered at a market-related price but free of stamp duty and brokerage.

These arrangements sometimes supplement conventional dividend reinvestment plans and sometimes take their place. These plans directly help Investors who want to top up their holding and also increases the popularity of the company in the marketplace thus probably leading to a slightly higher share price.

Share Splits

A share split is the subdivision of shares into a larger number of shares each with a correspondingly lower market value. The total value of any Investor’s holdings is not affected by the split. Sometimes splits are made to increase the marketability of a security.


The ownership of part of a company. It is a contract between the issuing company and the owner of the share, which gives the latter an interest in the management of the corporation, the right to participate in profits and, if the company is dissolved, a claim upon assets remaining when all debts have been paid. The majority of shares issued are either ordinary or preference shares. Companies can also issue deferred shares.


The difference between the expected amount and the amount received. For example, a borrower could issue securities to the market hoping to raise $1 million, but sell enough to raise only $900,000, which leaves a shortfall of $100,000.


When shares are moved form one stock exchange to another for the purpose of trading, for example New Zealand to Australia. This is sometimes called a Removal.

Special Dividend

A dividend paid in addition to the usual interim or final dividend. This dividend is a one off distribution and is paid at the discretion of the Issuer.

Security Transaction Statements

A statement sent by the Issuer outlining an investors transactions.

Special Meeting (SM)

A meeting for Investors when a special issue needs approval quickly. For example, Investor approval may be required if a Property Trust wants to purchase a new property, or if a company would like to offer a special dividend.

Split Vote

It is referred to splitting of votes when the holding is registered under joint partners.

SRN (Shareholder Reference Number)

12 characters usually starting with ‘I’ or ‘C’ followed by an 11 digit number. A SRN is a product of an issuer sponsored holding and will be needed to be quoted in all dealings with the registry.

Important note - your SRN identifies you as the owner of your securities and should be stored securely.

Standard and Poor's (S&P)

A global organisation that provides services including independent analysis and information on stocks, bonds, mutual funds and many other complex investment vehicles, investment data, rating services, indices, benchmark services, valuation analysis and opinions.

Statutory Declaration

A legally binding signed declaration made by a person to say that the statement they are making is true and correct. It is normally witnessed by a Justice of the Peace (JP).


The term stock, or stocks and shares have now become synonymous with securities.

Stock Exchange

A general term used to refer to the organised trading of securities through various exchanges and through the over-the-counter market. A "stock exchange" is a specific form of a stock market, a physical location where stocks and bonds are bought and sold, such as the NZX, ASX,New York Stock Exchange, NASDAQ or NSX.

Stop Payment

A notification to a bank that a cheque has been lost or stolen and is not to be honoured.

Sub Position

Same as reserved. Once an acceptance has been received for a block of shares then those shares are flagged to be unavailable for trading.

Sub Register

A component of the principal register whereby securities held in different modes are segregated.


One who agrees to purchase securities.

Substantial Shareholder

A person / company which owns over five percent of a company's issued capital (and as a result, voting rights). Substantial Shareholders must advise the NZX of any purchase or sale that changes their holding.

Substantial Shareholder Notice (SSN)

A form of notification which must be completed by an Investor once he/she exceeds a certain proportion of the shareholdings in a company.

Synthetic Instrument

Also known as a derivative.

T + 3

A stock exchange rule requiring both broker/broker and broker/client settlements for most stock exchange transactions to take place on the third business day after the date of the transaction.

There are penalties for both brokers and clients who miss the deadlines. This rule enables the bulk "netting" of transactions between brokers each day, thus reducing the paperwork which previously applied when individual buying and selling orders needed to be matched.


Takeovers are when one company (Offeror) makes a bid for another company (Target) through the purchase of its shares.

A Takeover can be for all or part of a company. They can offer Investors a choice of cash or securities or a combination of both. Prior to the takeover reaching the unconditional stage, the offeror can either change the offer or abandon the takeover. The term takeover is normally used to imply that the acquisition is made on the initiative of the acquirer and often without the full agreement of the acquired company, as distinct from a merger.

Takeover bids may be of two types; an off market, or an on market bid.

  • Off market bids involve the Investors receiving information from the directors of the company making the takeover bid that set out the details of the bid, as well as the recommendations from the directors of the company that they are attempting to acquire.
  • On market bids involve the Offeror acquiring the services of a broking firm to buy all Target company shares offered in the market at a specified price for a period of at least one month.

Both on market and off market bids can take place simultaneously.

Takeovers can move through four phases, entitlement, acceptance, unconditional and compulsory. Reaching the compulsory stage will be dependent upon conditions set by the offeror.

Tax File Number (TFN)

A unique number issued by the Australian Taxation Office (ATO) to individuals and organisations to increase the efficiency in administering tax and other Commonwealth Government systems such as Income Support payments.

Tax File Number Exemption

There are a number of categories of Investor who are exempt from quoting a TFN in relation to their investments.

These categories include:

  • Entities not required to lodge tax returns
  • Pensioners
  • Non-residents

To claim an exemption, as an organisation not required to lodge tax returns or as a pensioner, the exemption status should be advised on a Tax File Number Quotation\Exemption form.

Theoretical Value

The theoretical value which a Corporate Action (such as a rights issue or a bonus issue) would have on the market, if the market were perfect and if there were no other changes in market conditions apart from a corporate action.

Tolerance Amount

The tolerance amount is a range of amounts that are under or over the correct issue price for a corporate action that an Investor has mistakenly paid where they will not be refunded the money. The Issuer defines the tolerance amount.

If an Investor has overpaid, and the amount falls within the tolerance amount, the Issuer may keep the money (to absorb the cost of Investors who have underpaid) or give the money to charity. If an Investor has underpaid, and the amount falls within the tolerance amount, the Issuer will allot the number of securities that the Investor has requested (using money from Investors who have overpaid to make up the shortfall).

If the amount paid does not fall within the tolerance amount, when the Investor has overpaid, the Issuer will refund the money or request the shortfall of the money, or if they have underpaid, the Issuer will scale back the allotted shares closest to the amount that the Investor has paid.


Securities transaction between two parties. A Trade may be one of:

  • Broker/Broker trade where both parties are NZX member Brokers
  • Broker/Non-Broker trade where one party is an NZX member Broker and the other is not
  • On-Broker/Non-Broker trade where neither party is an NZX member Broker

Tradeable Balance

Securities that can be bought or sold on the stock market.

Trading Class

A security which can be traded (bought or sold) in the market.

Trading Halt

A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be cancelled and options may be exercised.


An additional block of stock, supplementary to an existing issue.


A record of movement (selling or buying) in an Investor’s holding.


A legal document used to transfer the holding of one Investor to another. It is no longer required for on market transactions.


The process by which one security turns into another. This usually happens in cases where an Issuer changes its name or when securities change their nature (e.g. becomes fully ranking instead of partially ranking).


The transfer of shares from a deceased Investor to the beneficiary/beneficiaries in accordance with estate documentation.

Trust Account

An account separate and physically segregated from an advisor, broker or other professional’s own funds, in which clients funds are deposited in accordance with the law.

Trust Distribution Payments

A payment of a trust’s profit to unit holders. Under most trust deeds, trusts are not permitted to retain profits.


A person or company that has legal responsibility for financial aspects (receipts, disbursement, and investment) of funds.

A trust company which acts in a capacity of trust as a fiduciary and to whom assets have been conveyed for the benefit of another party. The Trustee in this case oversees the behaviour of the manager in relation to the operation of a unit trust.

Uncalled Capital

That part of the company’s issued capital which has not been paid for by the Investors.

Unconditional Level

During a takeover bid, Investors in the target company must choose to either:

  • Accept the takeover offer;
  • Reject the offer; or
  • To sell their shares in the target company.

If a predetermined percentage of Investors accept the offer, then the takeover will proceed as the offeror will have a controlling interest in the target company. The unconditional level is this predetermined percentage (%) of acceptances required for the takeover bid to proceed.

If the takeover has reached the unconditional level, the remaining Investors (who have not responded to the offer) no longer have any choice over whether they will accept or reject the takeover offer. The takeover has now become unconditional. They can still keep the shares of the target company (unless compulsory acquisition occurs), or sell them on the market. The Offeror must fulfil their obligation to settle the takeover offer with all Investors who have accepted the bid by paying them cash, shares, or a combination of both.

Unconditional Phase

The unconditional phase occurs when the takeover has reached the unconditional level.

Underlying Instrument / Security

The shares subject to purchase on the exercise of an option.


An organisation that, for a fee, guarantees to the Issuer a minimum level of subscriptions to a share or debt issue. If public subscriptions fail to reach this minimum level then the underwriter takes up the shortfall and ensures that the funds will be available at a specific time. Underwriters often have sub-underwriters who share the risk.


A bank or other financial institution's guarantee to a company that it will buy a certain number of shares in a company's new issue or rights issue, should the issue not be fully subscribed by other investors.

From the company's point of view, having its new issue underwritten is a form of insurance. It means that if it has priced an issue too high and the market shuns it, the company can still be sure that it will get money from the new issue.

Of course, security comes at a price. Underwriters charge a fee for the back-up they provide. If the new issue is very popular, it will pocket that fee and make a handsome profit. Occasionally, they get badly burned. New issues underwritten immediately before the 1987 stock market crash lost a lot of money.

Sometimes companies do a rights issue at a deep discount to reduce the underwriting fees.

Unfranked Dividend

A dividend paid to a shareholder that has not been subjected to tax.

Unit Trust

An organisation which invests funds subscribed by Investors in securities, and in return issues units which it will repurchase. These units, which represent equal shares in the trust’s investment portfolio, produce income and fluctuate in value according to the assets the unit holds. The trustees which hold the securities are usually banks or insurance companies and are distinct from the management company.

The subscriber to a unit trust does not receive any of the profits of the company managing the trust.

The trust managers derive income from a regular service charge. Unit trusts are directed particularly at the Investor with small sums at his/her disposal. Units are easily purchased and resold, and risks are widely spread. The Investor benefits from expert management. Trusts may specialise in different areas such as blue chip securities, small companies, or foreign companies.

Unlisted Company

A Company and/or shares that are not available for purchase or sale through the sharemarket.

Unmarketable Parcel

A number of shares less than a marketable parcel.

Unsecured Notes

A loan made by the note holder to an Issuer for a fixed period of time at a fixed rate of interest. The loan is not secured by the Issuer against any of its assets. The notes offer a higher rate of return than a debenture of the same maturity but they do not carry the security of the debenture.

Valuation Price

The valuation price available from the ASX's data service Signal E is calculated as follows:

  • Price Traded Stocks
    If there was a trade on the previous day then the LAST price adjusted by either a higher BID price or a lower ASK price is used to create the valuation price. If there were no trades on the previous day then yesterday’s VALUATION price, adjusted by a higher BID price or a lower ASK price, becomes the new VALUATION price
  • Yield Traded Stocks
    The VALUATION YIELD is converted to a price using a formula that takes into account maturity date, interest rate, interest payment date, interest payments per year and basis of quotation.
    The value of interest accrued since the last interest payment date is calculated and subtracted from the converted price giving the VALUATION PRICE.


The value of your securities is your balance multiplied by the price at last close.

Voting Direction Form

Similar to a proxy form, however, holder can only nominate the Nominee as their proxy.

Voting Instruction Form

A voting instruction form is used when the holder directs a trustee/nominee on how to vote for their shares.


A certificate that gives the Investor the option to purchase shares at a fixed price before a specified date or in some cases indefinitely (endowment warrants). Warrants are sometimes attached to other securities as an added purchase incentive and may be traded separately after issue.

Warrant Code

All warrants quoted on NZX have ticker code: The code used for trading.

Warrant Issuer

The issuer of a warrant.

Warrant Series

Each warrant series has a separate warrant code. A warrant series is where warrants with the same terms of issue and underlying asset have the same warrant issuer, exercise price, expiry date (see expiry, expiry date, expiration) and settlement procedure.


A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.

Weighted Average

When an Issuer is setting a price on a share, they will take the average share price for a pre-determined number of days.


A document which sets out how an individual wants his or her wealth and property to be distributed after death.

Winding Up

The ceasing of a company’s business by a liquidator.

Withholding Tax (WHT)

For New Zealand tax residents, the tax paid on resident passive income such as interest and dividends is RWT (resident withholding tax).

Investors may receive:

  • interest with tax deducted and/or
  • dividends with tax deducted (and/or tax credits attached).

Your bank or other financial institutions should deduct RWT from your interest due, before paying it to you.

Non resident withholding tax is deducted from interest, dividend and royalty payments made to non-resident Investors; and Withholding tax is deducted at the source by the Share Registry from the payments.


An investments returned earnings, generally expressed as a percentage. This takes into account its current market price and annual income.

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