Glossary
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B
BACEN:Banco Central do Brasil, the Central Bank of Brazil.
Its purpose is to observe and compare the assets in a company, aiming detailed knowledge about its qualitative and quantitative importance, in order to reveal the factors determining its background and current situation, and to outline the future administration.
A fixed-income security, with a pre-established holding period, whose return is set at the time of negotiation and can be either prefixed or post-fixed. It is not transferable and is intended for investments of individuals or legal entities having an account at the bank. RDBs cannot be redeemed prior to the redemption date and cannot be traded in the secondary market.
A set of banking rules announced by the Basel Committee on Banking Supervision in 1988 with a view to strengthening the international financial system. Its hallmark is the requirement of a minimum percentage resulting from the division of a financial institution’s capital stock by its assets weighted by the risks inherent to them.
Pursuant to Resolution number 2099 of the National Monetary Council, of August 17, 1994, the requirement was set to maintain an amount of adjusted shareholders’ equity compatible with the risk of the asset structure of a certain financial institution, in compliance with the Basel Agreement.
The basic interest rate that serves as a reference for the Government, announced by the Monetary Policy Committee (COPOM).
A term used to refer to an index that will serve as a parameter of comparison for investments, products, services, and charges.
Dividends, bonuses and / or subscription rights that a company distributes to its shareholders.
A measure of the volatility of an asset, used to measure of the vulnerability of an asset in relation to a given index.
A price offer for the purchase (or sale) of shares.
A market negotiable security consisting of a money draft in which an individual (drawer) requires that another individual (drawee) pay a certain amount to a third party (payee). Bills of exchange are believed to have first appeared in mediaeval Italy, but their current form was developed in Germany in the 19th century.
Bank for International Settlements Committee on Banking Supervision.
São Paulo Stock Exchange. A nonprofit organization where securities are traded. Their main objectives are: keeping an appropriate local or electronic system for purchase and sale of bonds and securities; preserving high ethical standards in the negotiations; promptly provide thorough information about the operations made.
National Bank of Economic and Social Development. A Brazilian state-run company whose activities are: studying the problems of the global economic development and analyzing specific projects, with a view to driving the country’s economic sector; strengthening the national business sector; mitigating regional imbalances; promoting the integrated development of farming, industrial and service activities; and promoting the growth and diversification of exports.
They are securities issued by banks through foreign institutions that will be used as funding for loan operations in Brazil. The holding period is from three to eight years. Return may be fixed or variable and there may be a premium or not, both depending on market demand.
Due to the addition of reserves and profits, through the distribution free of charge of new shares, in proportion to the number of those owned by shareholders. As prices in the stock market are adjusted in the same proportion, the company’s assets are not affected.
Equity value of the company divided by its number of shares. A company that owns 5 million shares and stockholders' equity of R$ 10 million would have a VPA of R$ 2.00.
Accounting principles accepted in Brazil.
It is an attempt to rate the risk of investing in the country. It is expressed in points or rate per year, calculated by the difference between the return for investing in Brazil (through from its different securities) in relation to US treasury bonds, considered the safest assets in the world. Consider an international investor who buys a Brazilian public debt bond on the international market. The higher Brazil risk, the greater the perceived risk and the return required to invest in assets of the country (and vice-versa). The risk takes into consideration several economic and political indicators, such as tax deficit, economic growth, solidity of institutions, etc.
Balance point between revenue and expenditure. From the this point, the company's revenue generate, proportionately, a larger profit.
A financial institution allowed to trade securities or futures contracts in trading sessions. Brokerage firms are accredited by the Central Bank and are members of stock and futures exchanges.
A commercial company with at least two partners whose respective interests are represented by a proportional number of shares: each one’s liability is limited by the issuance price of subscribed or acquired shares; Business Corporations can have any kind of activity legally considered commercial, industrial or services. Business Corporation must be for profit organizations.
A set of rules and regulations in which the institutional or organic principles of a community or of a public or private corporation are laid down.
