Glossary


Letter: S
 
Securities portfolio See portfolio
 
Securities traded In a given Stock Market, it indicates the total amount of securities traded for each personal asset or in the whole market during a given period
 
Selling short Sale of a security or commodity futures contract owned by a seller: a technique used: - to take advantage of an anticipated decline of the price - to protect a profit in a LONG POSITION An investor borrows stock certificates for delivery at the time of short sale. If the seller can buy that stock later at a lower price, a profit results; if the prices rises, however, a loss results. A commodity sold short represents a promise to deliver the commodity at a set price in a future date. Most commodity short sales are COVERED before the DELIVERY DATE. Example of a short saler involving stock (in the US market): an investor, anticipating a decline in the price of X shares, instructs his or her broker to sell short 100 X when X is trading at 50USD. The broker then loans the investor 100 shares of X, using either its own inventory shares in the MARGING ACCOUNT of an another costumer, or shares borrowed by from another broker. These shares are used to make settlement with the buying broker withing five days of the short sale transaction, and the proceeds are used to secure the loan. The investor now has what is known as a SHORT POSITION - that is, he or she still does not own the 100 X shares, and at some point, must buy the shares to repay the lending broker. If the market price of X drops to 40€ the investor can buy the shares for 4000€, repay the lending broker, thus covering the short sale, and claim profit of 1000USD or 10USD a share.
 
SET Used to indicate large sets of shares/stock sto be traded. Transactions usually take place between institutional sellers and buyers (banks, investments funds, etc.) aside from official trading operations and must be announced to Stock Exchange authorities and the Market.
 
S&P/MIB Index estimating the performance of 40 companies listed on Borsa Italiana's Stock Markets. It aims at representing the ten main economic sectors. The new index reflects more effectively the performance of the most important Italian listed companies, improves the representation of the economic sectors according to the Global Industry Classification Standard (GICS) and increases the Italian market's visibility at international level
 
Shareholders Agreement These consist of agreements between groups of major shareholders to exercise the rights associated with the shares held (for example the voting right) in an agreed way
 
Shares/stock Held by corporate partners, they are the percentage of corporate partecipation by single partners. Pirelli & C has two categories of shares/stocks: ordinary and saving (cfr. Share/Stock)
 
SICAV (Società di Investimento a Capitale Variabile - Open-End Investment Companies) They collect savings from investors and use them to issue shares and bonds listed on the Stock Exchange, according to rules similar to those for mutual investment funds. However, unlike the mutual funds, the SICAV distribute real shares to subscribers, giving them the right to vote at the General Meeting of Shareholders
 
SIM (Società di Intermediazione Mobiliare) Securities intermediation companies authorised to collect buying and selling orders placed with the Stock Market, to trade securities on their own behalf and for third parties, to invest in and distribute securities to the public, to advise and manage securites portfolios and to carry out activities to promote public savings
 
Small caps (an abbreviation for Small Capitalisation Shares) In Anglo-Saxon stock exchange jargon they indicate low capitalisation shares of small and medium-sized companies. If the amount of floating shares is low and there are few shares in circulation, these securities may be difficult to sell on the market
 
Start-up Term used internationally to define a new or very recently founded company. ( Stock Exchange: "entrant")
 
STM (Stock Telematic Market) The major market of the Italian Stock Exchange where stocks, convertible Securities, warrants, covered warrants, rights of option and closed property and non-property funds listed on the official listing are traded (Borsa Italiana/Mercato Telematico - italian version)
 
Stock Exchange calendar The Stock Exchange year is divided into 12 Stock Exchange months that do not coincide with the calendar months. The first and last day of a Stock Exchange month must not fall on Stock Exchange closure days. Therefore, the Stock Exchange calendar is set by Consob through a decision made towards the end of each calendar year
 
Stock option Incentive or remuneration to staff and/or managers through assigning options to hold or purchase stocks of their company at a predetermined price.
 
Substantial shareholding In the case of listed companies, the law defines any shareholding exceeding 2% of the capital as "substantial". However, in the case of shares held by a listed company in a non-listed Stock Company or in a limited liability company, the threshold beyond which the participation is defined as "substantial" increases to 10% of the capital