Record date
Market basicsThe cut-off date determining which shareholders are entitled to a corporate action.
In plain terms
Hold the shares on this date and the entitlement is yours. The price adjusts to reflect what has left.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Entitlement ratio
Market basicsIn a tender-route buyback, the number of shares a holder may tender for every so many held on the record date, stated separately for the reserved small-shareholder category and for everybody else.
In plain terms
It is not the acceptance ratio. The entitlement is what you are allowed to offer; the acceptance ratio is what is actually bought once every tender is counted. You may tender beyond your entitlement, but the excess is considered only after entitled tenders in your category have been dealt with.
Clean price
Market basicsA bond price quoted without the interest accrued since the last payment date; the same bond with that interest added is the dirty price, and it is the dirty price that settles.
In plain terms
Which of the two your screen is showing decides whether the cash leaving your account matches the chart. The chart answers it for you: look at two consecutive interest record dates and see whether there is a step of roughly one coupon.
Share swap ratio
Fundamental analysisAlso called: Share entitlement ratio
The ratio at which shares of one company are exchanged for another in a merger or demerger.
In plain terms
Tells you how many new shares you receive. The price adjustment on the record date is arithmetic, not a loss.