Glossary


Letter: B
 
Benchmark Index summarizing yield and listing trends of a set of shares traded on a given market in a given time frame. Taken as a reference method to measure yield of financials (common funds, shares, etc.). Major benchmarks are market and/or sectorial indexes. Pirelli & C is included into the following: FTSE Mib, FTSE All Share, DJ Stoxx Auto & Parts, DJStoxx 600, S&P Euro 350; S&P Euro 350 Ind.; S&P Euro 350 Auto & comp.; S&P Global 1200, etc.
 
Blocks A term used to indicate large packages of securities that are the subject of Stock Exchange transactions. Such Stock Exchange operations usually occur between institutional buyers and sellers (banks, investment funds etc.) as margin trading and must be communicated in advance to Stock Exchange authorities
 
Blue chip Shares of organizations with high capitalization and included into the major reference indexes (S&P Mib). Pirelli & C, with its 2.5 billion euro market capitalization on July 19, 2010 is among the major Italin blue chip companies.
 
Bond A debt security that can be traded on the market, issued by a listed company to obtain a loan from the public. There are various types of bonds: indexed, convertible, cum warrant, premium etc.
 
Book (also "trading book" and/or "negotiation book "). Definition of the bulk of prospect negotiation transactions on the market at a given time and for each share/stock segmented into “purchase” and “sale”. Prospect sales and/or purchases received by the telematic system (v. MTA) are automatically classified according to priorities based on price and timing while waiting to be matched with compatible counterparts.
 
Borsa Italiana S.p.A. Private company responsible for the organisation and management of the Italian Stock Market, New Market, Restricted Market and IDEM (Market of Stock Derivatives).
 
Broken lot In Stock Exchange language, this indicates an irregular quantity or lot of securities, which is lower in terms of amount or quantity than the minimum lot quantity (for shares) or than the lot normally traded
 
Broker An individual or firm acting as an intermediary between a buyer and a seller charging a commission. Major brokers can carry out analyses on listed stocks/shares on a regular basis and issue their assessment (Target Price) and a further purchase recommendation (Buy when Target Price is definitely higher than the Stock/Share Market Price), or maintaining the share/stock into the portfolio (Hold when Target Price is equal or closed o the Market Price) or sell (Sell whenTarget Price is below the Market Price). Pirelli & C stocks/shares are covered by 21 brokers with an average 83% Buy recommendation (as of July 19, 2010)
Analyst Coverage