Some of the terms used on the stock exchange 

The amount by which the new issue of securities exceeds the issue price of the principal amount.
Share stock
The share is a document that securitizes the holder’s claim for a specific fraction of the total assets of the share stock of a company. The rights of shareholders are protected by the provisions of the Companies Act.
Share Stock Analysis
To facilitate the investment decision for investors, share stock, share stock companies and stock markets are analyzed by experts. Tasks of the share stock analysis are on the one hand the generation of information the on other hand the compilation of a prognosis. The fundamental analysis uses the evaluation of critical business data to access a share stock whereby also taking into account social economic variables, such as new orders intakes, wage developments and exchange rates. Chart analysis refers to a method of analysis of the price development of a share stock or group of stocks of shares, whereby the course of the market value is represented graphically and certain developments (patterns, trends) are consequently easier to discern.
The bond belongs similarly to the debenture bond, the industry obligation or communal obligation to the interest-bearing securities. A bond securitizes the rights of a creditor. Mostly it guarantees the holder constant interest rates and the repayment of a specific sum.
One practices arbitrage, when one exploits the price differences that concomitantly exist on several stock exchanges. A share stock, bonds or even foreign exchange unit is bought, where it can currently be fetched at the cheapest value, and sold at the same moment at a higher rate on another stock exchange. Course differences and course fluctuations are held within limits due to arbitrage transactions.
Supervisory and Executive Board
At the head of the management of a company are its supervisory board and executive board. The supervisory board appoints the executive board that monitors and advises it on the management of the company. The executive board directs the day-to-day management of the company.
Bear market
Stronger, usually prolonged course decline on the stock market.
Employee Share
Increasingly more companies offer their employees the option of purchasing stock of the company. The purchase price is usually below the market price. Employee shares have the same rights as other shares. In case one want to take advantage of tax benefits claims, the employee shares must be temporarily fixed, i.e. they may only be sold at a loss of the benefits before the end of the expiry period.
Bonus shares
These are issued when a share company converts open reserves into principal capital that is subject to dividend claims. The own capital of the company is thereby not altered, so that the participation of a shareholder remains the same, but is nevertheless spread over a larger number of shares.
Subscription right
The right of a shareholder to acquire the new (= "young") shares of the company in the event of a capital increase. The shareholders may choose not to exercise its subscription rights and instead and sell the subscription rights on the stock exchange.
In addition to granting special dividend payment to shareholders. Possible occasions: anniversary celebrations, special income.
Stock Exchange (Germany)
The stock exchange is the market for securities, shares and bonds (market fixed income securities). The German stock exchanges are subject to government supervision. The stock market is divided into several sub-markets, also called market segments.
1. Official Market
This market places the highest standards on companies seeking capital. For IPOs, a detailed prospectus with full details of the company is required. In addition, interim reports as well as annual balance sheet must be published in an official stock exchange gazette. The fixing of the course price is done by the official stock exchange course broker. The clients have a right to have the orders carried out at the determined course price. Most transactions are executed over this market.
2. Regulated Market
The regulated market offers companies in comparison to the official market an easier access to the stock exchange market. The public offering prospectus can at times be shorter. The publishing obligation does not necessarily have to be conducted over the press of the stock exchange, but can also be presented for inspection at the counters of credit institutes. Through these and other facilitations, mainly medium-sized companies should be given cost-saving opportunities of going public. The trade on the regulated market follows the same rules as the trade on the official market.
3. Free trade market
Here such securities are traded that neither permitted on the official market nor on the regulated market. The inclusion of the free trade market takes place on the various stock exchanges at the request of a credit institute. The perquisite is that a proper trading should be assumed. Prices are determined by special brokers and published each trading day of the stock exchange.
Fee of the course broker for services in the securities business.
An establishment of credit institutions to manage securities for their customers. Securities may be separately stored in a wrapper (Wrapper depot) or with the consent of the customers by a securities depository bank (collective custody account). The latter is the common and less expensive form. In both cases, the customer deposits are held separately from the own resources of the Bank and not subject to the claims of creditors of the bank.
Each shareholder is entitled to a part of the annual distributed profit of a company that corresponds to the amount of shares he holds. This part of the profit is called dividend.
Term for securities that are capable of being traded on the stock exchange.
Nominal capital
The capital established in the statutes of a joint stock company. The Statute also specifies into how many shares the nominal capital is divided. The amount of nominal capital is the basis for the amount of  shares the company issues.
Annual General Meeting
At least once a year, the shareholders of a company convene for AGM. This elects the Supervisory Board and the auditor, may adopt decisions on the use of the reported net profit, on measures to raise capital, the articles of association and other fundamental questions. It relieves the Supervisory Board and the Executive Board.
Bull market
Stronger, usually prolonged persistent price increase on the stock exchange.
Indicator that expresses changes in certain variables and as such makes comparisons, particularly of value or price changes possible. A stock index reflects the price development of an industry or a national market. For the German stock market, indices are inter alia calculated by the Deutsche Stock exchange AG, a few banks and various newspapers. The best known index in Germany is the German stock index DAX.
XETRA (Exchange Electronic Trading)
As of late 1997, the German stock exchange AG, introduced an electronic system for cross-border securities trading, the XETRA. In the European environment, indices of the Stoxx 50 or Euro Stoxx 50 have the greatest significance. These indices represent the 50 largest listed companies in Europe or the euro zone. Worldwide, the greatest significance is attributed to the Dow Jones index, in which the 30 largest U.S. companies are represented.
Term used on the stock market to refer to people who by virtue of their professional status have an information advantage. The exploitation of this information edge to its own advantage by securities transactions is prohibited, violations may be lead to imprisonment and / or cash fines of significant amounts.
Mutual fund shares
Term for shares, which represent securitized participation in the assets of an investment fund. These assets include besides bank accounts in particular securities in a wide dispersion, this means depending on the type of fund fixed-income securities or shares. Mutual fund shares are not traded on stock exchanges, but are calculated from the daily stock market prices of the entailed values.
Professional securities trade of brokers and credit institutions when they participate in stock market on their own account.
Special security paper, also called a dividend certificate that forms part of a share and against which the dividend paid on its submission. The interest certificates that accompany securities  are also called coupons.
Price-Earnings Ratio (PER)
Market price of shares (e.g. 100, - €), divided by the earnings per share (e.g. 10, - €). The price-earnings ratio would, in this case, ten fold or in short: 10. A lower price-earnings ratio means an accordingly lower stock market valuation.
Market course value

The price of the shares is determined by supply and demand on the stock market. The current stock market price is called the course price.
The fixing of a price limit by the purchase or sale orders of securities.
Jacket and bow
Each share certificate also called stock certificate (Jacket) has a bow with 10 or 20 dividend coupons and a renewal form (Talon), the entails the right to buy a new bow. The dividend is payable to the shareholder directly from the company, but typically over a credit institution upon presentation of each due dividend note.
Nominal value
Each share has a specific amount in € or U.S. $ or other currency printed on it, which is its nominal value, with the exception of the quota share, which is traded without a nominal value, but rather on a volume basis. The smallest nominal value of one share in Germany since 1.1.1999 is exactly 1, - €.
This refers on the stock exchange to the right to purchase upon payment of a premium within an agreed period, to purchase or sell securities (equities or bonds) at a pre-specified.
Warrants bonds
Securities that over a fixed period give the holder in addition to a fixed interest rate, the (option) right to the subscription of shares of the respective company. Subscription price and subscription ratio for the stock are set before the warrant bonds are issued. After exercising the subscription rights or separation of the option rights remains the warrant bonds  continue to exist as ordinary bonds until repaid. Bonds with warrant certificates can also be offered that entitle the holder to subscribe for additional bonds.
Subscription Warrants
The securitized right issued with the warrant bond to subscribe for shares or bonds. Subscription warrants can be traded separately from the warrant bond on a stock exchange. The purchase of a subscription warrant already allows an investor to participate in the exploitation of the upside potential of the stock in spite of his limited contribution, his losses remain limited to the amount of his contribution.
The annual specified percentage of the purchase price you get for securities, taking into account all factors (interest or dividend, course, maturity, etc.). The yield is therefore usually not the same as the nominal interest rate or the dividend percentage.
Ordinary share
A term used to refer to shares with voting rights however without preferential rights in contrast to the mostly non-voting preferred shares in the event that a company has issued both types of shares.
Voting right
Each shareholder has a legally enshrined right to vote at the general meeting. The numbers of votes that a shareholder unites under his auspices are determined by the number of voting shares in his possession. The shareholder can also arrange for his voting rights to be exercised by a third party, e.g. his credit institution or a shareholders' association.
Futures trading
Securities transactions, whose fulfillment is not immediate (spot contract) but is only at a later date. In Germany, the futures trading takes place at the German Futures Exchange (DTB).
The Executive Board
The Executive Board manages the operational affairs of the company.
Preferred shares
Preferred shares generally have no voting rights. To compensate for this,  the owners of these shares are granted  other advantages (minimum dividend, repayment obligation, among others for accrued dividends).
Convertible Bond

The holder of a convertible bond can during the term of the bond have it converted into shares at a predetermined ratio. Whether the conversion option is of interest to the holder depends on the share price. The bond is repaid at maturity (amortized), in as far as the conversion right is not exercised.
XETRA (Exchange Electronic Trading)
Electronic trading on the Frankfurt Stock Exchange.


From the author:

It is never too early to prepare the future of a company . There is no inappropriate Moment, but rather only poor concepts or lame excuses.

(Interview CNN, Atlanta 2001)

IPO Inital Public Offering"The success of a company depends largely on being able  to judge the future in the best possible way. The best way is to shape the future itself."

Lecture World Economic Forum, 2003

"We have not gone public, to become rich or famous. The objective is rather to grow - faster and more sustainable than all others."

Speech at the NASDAQ, 2001

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