glossary


Letter: A
 
ADR American Depository Receipt: through this system, foreign shares can be listed on the US market. The ADR is a certificate issued by a US bank  to cover foreign shares deposited with the bank.
Pirelli & C has no ADR program.
 
After hours (from Trading After Hours or TAH) An evening session of the Borsa Italiana, introduced on May 15th, 2000. It starts at 6:00 PM and ends at 8:30 PM
 
Arbitrage Speculative trade consisting in the simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.
 
Asset allocation The allocation of financial assets. In practice, it consists of dividing the portfolio between the main investment categories, such as shares, fixed income and cash, in order to balance the risk and remuneration according to the investor's requirements
 
Asset management Activity carried out by authorised intermediaries (SIMs, banks, trust companies) by buying and selling securities