Financial Markets Exam Review

Flashcards covering vocabulary and key concepts of financial markets, including share types, market analysis, technical formations, and trading rules.

Dividend Companies

Companies that emit shares; distinguished as joint-stock companies and limited joint-stock companies.

Bearer Shares (Akcje na okaziciela)

A type of share that is easier to sell than registered shares.

KDPW Registration

The formal procedure where shares are first registered in the National Depository for Securities before others can subscribe to them.

Variable Income Securities

Securities representing a right to share in the profit and assets of the issuing entity, such as shares (akcje).

Fixed Income Securities

Securities representing a debt where the capital and income size are determined in a monetary amount at the time of issuance, such as bonds (obligacje).

Voting Preference Cap

According to the Code of Commercial Companies ($KSH$) since $2001$, a single privileged share can grant a maximum of $2$ votes at the General Meeting of Shareholders ($WZA$).

Unlawful Payments (Wypłaty nieprawne)

Payments that a shareholder is obligated to return, with the exception of dividends collected in good faith.

Fundamental Analysis

A long-term investment method focusing on economy fundamentals and the financial condition of the issuer to find undervalued companies.

Technical Analysis

A method used to predict price movements by studying charts and identifying the best moments to buy or sell financial instruments.

White Candlestick Body

A symbol of a bull market (hossa) where the opening price is lower than the closing price.

Black Candlestick Body

A symbol of a bear market where the opening price is higher than the closing price.

Commercial Bills (Bony komercyjne)

Debt instruments that can be sold in tranches as part of an emission program.

Treasury Bills (Bony skarbowe)

Short-term debt instruments sold at a discount (below nominal value) with no interest, issued by the state.

Dirty Price (Cena brudna)

The price of a bond or financial instrument that includes accrued interest.

Participation Units (Jednostki uczestnictwa)

Instruments that can be bought or sold only through the investment fund, not on the stock exchange, and are not considered securities.

Investment Certificates (Certyfikaty inwestycyjne)

Indivisible securities that can be traded on the secondary market (including the stock exchange) and are usually in bearer form.

250PLUS Segment

A stock exchange segment for companies with a share capital exceeding $250$ million EUR.

Alert List (Lista Alertów)

A segment for penny stocks with high volatility, generally priced below $1\,PLN$, or companies in bankruptcy.

Catalyst Market Architecture

A multi-platform market where $GPW$ handles retail trading and $Bondspot$ handles wholesale trading.

Periodic Reports

Mandatory publications for public market issuers including quarterly, semi-annual, and annual reports.

ADR (American Depositary Receipt)

Depositary receipts specifically issued for the American market.

GDR (Global Depositary Receipt)

Depositary receipts that can be issued on various markets simultaneously, common in Europe.

Head and Shoulders Formation

A technical analysis pattern featuring three peaks with the highest in the middle, signaling a trend reversal from upward to downward.

Rising Wedge (Klin zwyżkujący)

A formation that usually forecasts a further drop in prices, occurring during short gains in a long-term downtrend or at the end of a bull market.

Saucer Formation (Spodeczek)

A trend reversal formation signaling an upcoming increase in prices.

WIG-DIV

An index consisting of companies that pay annual dividends to shareholders.

WIG-ESG

An index representing socially responsible companies.

Precision of Stock Quotes

The price is given with a precision of $5$ groszy if it exceeds $100\,PLN$, and a precision of $1$ grosz for lower values.

Bond Quote Precision

The price of a bond is given with a precision of $0.01$ percentage points ($pp$).

Mortgage Bonds (Listy zastawne)

Creditor securities that can be issued exclusively by mortgage banks.

Primary Market

The market where the issuer is present and new instruments are first sold.

Book Building

The most complex and expensive but effective method for determining the emission price based on investor expectations.

Medium-term Bonds

Bonds with a maturity period of $5$ years.

Zero-coupon Bonds

Securities where the issuer returns only the nominal value to the bondholder at maturity, without interest.

Private Placement

An offer to acquire financial instruments directed at a maximum of $149$ named individuals.

Static Volatility Bands (Widełki statystyczne)

A price limit set at $10\%$ from the reference price for stocks and $3\,pp$ for bonds.

Dynamic Volatility Bands (Widełki dynamiczne)

A price limit for mWIG40 stocks set at $4.5\%$ from the reference price; exceeding it results in a trading halt.

Systematic Risk

Market-wide risks including interest rate risk, inflation risk, and currency risk.

POLONIA Rate

A reference rate calculated as a weighted average for overnight deposits every business day.

WIBID

The buying price ($KUPNO$) of money on the interbank deposit market, calculated as an arithmetic average.

WIBOR

The selling price ($SPRZEDAŻ$) of money on the interbank deposit market.

Market Maker (Animator Rynku)

An entity that supports liquidity on the market rather than preparing the issuer for a debut.

PKC Order

An 'At the Market' order that can be executed at various different prices.

PCR Order

An 'At Best' order that has priority over limit orders but must be executed at a single best price.

Treasury Bill Nominal Value

The nominal value of a single treasury bill is $10,000\,PLN$.