Some terms and definitions frequently used on Armenia Securities Exchange and Central Depository of Armenia

account operator Account operator is a bank, a fund manager, a stockbroking firm or other type of investment firm that is a intermediary between you and the stock exchange or the depository.(Investopedia)
assets Assets are everything you own that has any monetary value, plus any money you are owed.They include money in bank accounts, stocks, bonds, mutual funds, equity in real estate, the value of your life insurance policy, and any personal property that people would pay to own.When you figure your net worth, you subtract the amount you owe, or your liabilities, from your assets. Similarly, a company’s assets include the value of its physical plant, its inventory, and less tangible elements, such as its reputation.(Virginia B. Morris Kenneth M. Morris, 2007)
bond A contract document promising to repay money borrowed by a company or by the government at a certain date, and paying interest at regular intervals. (Russel J. , 2005).
clearing Clearing is the procedure by which financial trades settle - that is, the correct and timely transfer of funds to the seller and securities to the buyer. Often with clearing, a specialized organization acts as intermediary and assumes the role of tacit buyer and seller in a transaction, to reconcile orders between transacting parties.(Investopedia)
custody Control of a thing under the law, as when holding valuables or share certificates in safe-keeping for someone.(Russel J. , 2005)
depository A depository is a facility such as a building, office, or warehouse in which something is deposited for storage or safeguarding. It can refer to an organization, bank, or institution that holds securities and assists in the trading of securities.(Investopedia)
derivative instruments

Any forms of traded security, such as option contracts,which are derived from ordinary bonds and shares, exchange rates or stock market indices. COMMENT: Derivatives traded on stock exchanges or futures exchanges include options on futures or exchange rates or interest rate. While they can be seen as away of hedging against possible swings in exchange rates or commodity prices, they can also produce huge losses if the market goes against the trader. (Russel J. , 2005)

A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. (Investopedia)

dividend A percent-age of profits paid to shareholders.(Russel J. , 2005)
financial Instrument

1. A document showing that money has been lent or borrowed, invested or passed from one account to another (such as a bill of ex-change, share certificate, certificate of deposit or an IOU) 2.any form of investment in the stock market or in other financial markets, such as shares, government stocks, certificates of deposit or bills of exchange.(Russel J. , 2005)

Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world's investors. These assets can be cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one's ownership of an entity. (Investopedia)

IPO(Initial Public Offering)

When a company reaches a certain stage in its growth, it may decide to issue stock, or go public, with an initial public offering (IPO). The goal may be to raise capital, to provide liquidity for the existing share-holders, or a number of other reasons.Any company planning an IPO must register its offering with the Securities and Exchange Commission (SEC).In most cases, the company works with an investment bank, which underwrites the offering. That means marketing the shares being offered to the public at a set price with the expectation of making a profit. (Virginia B. Morris, Kenneth M. Morris, 2007)

The process of offering shares of a private corporation to the public for the first time is called an initial public offering (IPO). Growing companies that need capital will frequently use IPOs to raise money. (Investopedia)


When a corporation offers a stock or bond for sale, or a government offers a bond, the security is known as an issue, and the company or government is the issuer.(Virginia B. Morris Kenneth M. Morris, 2007).

An issue is the process of offering securities in order to raise funds from investors. Companies may issue bonds or stocks to investors as a method of financing the business. The term "issue" also refers to a series of stocks or bonds that have been offered to the public and typically relates to the set of instruments that were released under one offering.(Investopedia)


Shares which can be bought or sold on the Stock Exchange, shares which appear on the official Stock Exchange list. (Russel J. , 2005)

Listing refers to the company's shares being on the list (or board) of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, subject to conditions. (Investopedia)

nominal value

The value written on a coin, banknote or share certificate (Russel J. , 2005)

Nominal value of a security, often referred to as face or par value, is its redemption price and is normally stated on the front of that security.

placement/allocation of securities

The process of providing sums of money for particular purposes, or a sum provided for a purpose the allocation of funds to a project. (Russel J., 2005)

A placement is the sale of securities to a small number of private investors that is exempt from registration with the Securities and Exchange Commission under Regulation D, as are fixed annuities. (Investopedia)


A preliminary prospectus about a company which is going to be launched on the Stock Exchange, sent to potential major investors before the issue date, giving details of the company’s back-ground, but not giving the price at which shares will be sold. (Russel J. , 2005)

A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public. (Investopedia)

registry keeping Securities information is recorded, saved and given when applicable.(Investopedia)
regulated market A regulated market is a set of organizational, legal and technical arrangements that enables trading in financial instruments in an open manner and on a regular basis. When listing on a regulated market, the organization and procedure of trading along with issuer surveillance is implemented in compliance with the relevant European Union standards and directives. A regulated market is subject to oversight by both the stock exchange and the respective financial market regulator.
repo (repurchase agreement)

 An agreement, where a party agrees to buy something and sell it back later (in effect, giving a cash loan to the seller; this is used especially to raise short-term finance). (Russel J. , 2005)

A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day. (Investopedia)

secondary market The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.(Investopedia)

A standardized, marketable, and tradable CAPITAL instrument, such as a BOND, COMMON STOCK, or PREFERRED STOCK, that provides INVESTORS with a particular RETURN for a given set of RISKS. Its standardization creates fungibility and thus a degree of LIQUIDITY. (Erik Banks “Dictionary of Finance Investment and Banking”).

The term "security" is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation—via stock—a creditor relationship with a governmental body or a corporation—represented by owning that entity's bond—or rights to ownership as represented by an option. (Investopedia)

securities custody A service in which a brokerage or other financial institution holds securities on behalf of the client. This reduces the risk of the client losing his/her assets or having them stolen.(Investopedia)
settlement Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against (in simultaneous exchange for) payment of money, to fulfill contractual obligations, such as those arising under securities trades. (Investopedia)

One of many equal parts into which a company’s capital is divided. (Banks E. 2010)

Share is a unit of ownership in a corporation or mutual fund, or an interest in a general or limited partnership. Though the word is sometimes used inter- changeably with the word stock, you actually own shares of stock.(Virginia B. Morris, Kenneth M. Morris 2007)

Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares, just as mutual fund shares are recorded electronically. (Investopedia)


Stock is an equity investment that represents part ownership in a corporation and entitles you to part of that corporation’s earnings and assets. Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stock provides no voting rights but usually guarantees a dividend payment.In the past, shareholders received a paper stock certificate—called a security—verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.(Virginia B. Morris Kenneth M. Morris 2007)

Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are at the bottom of the priority ladder in terms of ownership structure; in the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debtholders are paid in full. (Investopedia)

stock exchange

An exchange that specializes in trading of stocks and other equity-related instruments (such as indexes, stock-based EXCHANGE-TRADED FUNDS, and OPTIONS). The exchange may operate through physical or electronic mechanisms and is typically regulated by the country’s financial regulators. (Erik Banks “Dictionary of Finance Investment and Banking”).

An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public. (Investopedia)

stock market

A stock market may be a physical place, sometimes known as a stock exchange, where brokers gather to buy and sell stocks and other securities.The term is also used more broadly to include electronic trading that takes place over computer and telephone lines. In fact, in many markets around the world, all stock trading is handled electronically. (Virginia B. Morris, Kenneth M. Morris, 2007)

The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.




  • Banks E. 2010. The Palgrave Macmillan Dictionary of Finance, Investment and Banking. Springer, New York, 565pp.
  • Investopedia, Financial terms, Accessed July 1, 2019
  • Regulated Market Accessed October 14, 2019
  • Russel J. 2005. Dictionary of Banking and Finance. A & C Black Publishers Ltd, London, 400pp.
  • Virginia B. Morris Kenneth M. Morris 2007. Dictionary of Financial Terms. Lightbulb Press, Inc., New York, 224pp.



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Updated as of: 26.03.2020