Price history corrected for corporate actions, notably share splits and reverse splits. Without this adjustment, a 10-for-1 split would show a 90% drop on the chart even though no value was lost. All past prices are divided (or multiplied) by the ratio of the operation so that the curve stays comparable.
Practical Example:
A stock trading at 50,000 FCFA before a 10-for-1 split appears at 5,000 FCFA in the adjusted history, avoiding a false 90% drop on the chart.
1
Raw price before the split50,000 FCFA
2
Raw price after the 10-for-1 split5,000 FCFA: a false 90% drop
3
Adjusted historyPast prices are divided by 10: 5,000 FCFA before and after, a continuous curve.
Why adjust: the raw chart shows a drop that never happened.
AMF-UMOA (formerly CREPMF)
Market Participants
Regulatory and supervisory authority for the WAEMU regional financial market, responsible for investor protection, offering approvals and the proper functioning of the market.
Practical Example:
The AMF-UMOA approves public offerings and supervises brokerage firms (SGIs).
Best Bond Issuer (BRVM Awards)
Awards & Markets
Award awarded to a sovereign (State) or non-sovereign (institution, company) issuer having achieved the most significant and regular bond fundraising on the market.
Practical Example:
The Public Treasury of Côte d'Ivoire is a recurring winner of the Best Bond Issuer award.
Best Institutional Investor (BRVM Awards)
Awards & Markets
Trophy rewarding the most active pension funds, insurers or sovereign funds in asset allocation and long-term support of the financial market.
Practical Example:
IPS-CNPS has been awarded several times as Best Institutional Investor at the BRVM Awards.
Best Listed Company (BRVM Awards)
Awards & Markets
Prize rewarding the company admitted to the BRVM listing which has distinguished itself by the liquidity of its stock, its stock market performance, its governance and the quality of its financial communication.
Practical Example:
Sonatel and Orange CI have already won the Best Listed Company prize at the BRVM Awards.
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Best SGI (BRVM Awards)
Awards & Markets
Distinction awarded to the Management and Intermediation Company having achieved the highest volume of transactions, actively contributed to the development of the market and developed its clientele.
Practical Example:
Receiving the Best SGI award demonstrates the leadership of a broker in the regional market.
Best SGO (BRVM Awards)
Awards & Markets
Prize awarded to the UCITS Management Company illustrated by the growth of its assets under management, the profitability of its funds (FCP/SICAV) and compliance with regulatory standards.
Practical Example:
The Best SGO trophy highlights a company's expertise in collective asset management.
Beta (Beta Coefficient)
Analysis & Risk
Indicator measuring the sensitivity of variations in a security to movements in the entire market.
Practical Example:
A beta of 1.4 means that if the market rises 10%, the stock tends to rise 14%.
Index composed of the 30 most active and liquid stocks on the BRVM market.
Practical Example:
The BRVM 30 is often used as a benchmark by fund managers.
BRVM Awards
Awards & Markets
Annual ceremony organized by the BRVM to reward the excellence, dynamism, liquidity and performance of key players in the UEMOA regional financial market.
Practical Example:
Each year, the BRVM Awards ceremony awards distinctions to the best listed companies, SGIs and fund managers.
BRVM Composite
Markets & Indices
General stock market index measuring the overall performance of all stocks listed on the BRVM.
Practical Example:
An increase of 0.45% in the BRVM Composite reflects a general positive trend in the market.
BRVM Prestige
Markets & Indices
Index bringing together companies listed on the Prestige compartment, meeting strict criteria of governance, profitability and liquidity.
Practical Example:
BRVM Prestige companies comply with rigorous financial information obligations.
A synthetic score assessing the quality of a listed company based on criteria inspired by Warren Buffett's investing principles (sustainable profitability, controlled debt, competitive advantage, consistent results...). A high score signals a company considered financially solid over the long term, without guaranteeing future stock performance.
Practical Example:
A stock with a Buffett score of 85/100 meets most of the selected quality and financial soundness criteria.
An indicative technical rating for a stock, from 1 to 5, based solely on its recent price behaviour (medium-term trend, position versus its moving average, consistency of recent moves, proximity to the observed high): 1 Buy, 2 Accumulate, 3 Hold, 4 Reduce, 5 Sell. This is an experimental, indicative signal and does not constitute investment advice.
Practical Example:
A stock in a steady uptrend and close to its recent high may receive a Consensus rating of 1 (Buy).
Regional financial institution responsible for safeguarding dematerialized securities and settling stock-market transactions through delivery versus payment.
Practical Example:
The DC/BR ensures that the purchased securities are securely transferred to the investor's account.
A financial security, such as a bond or Treasury bill, representing a claim on the issuer and providing for interest payments and repayment of principal.
Practical Example:
The bond is a debt instrument issued to the public.
Change in the amount of dividend per share over the years. Steady progression may signal a growing capacity to remunerate shareholders, without guaranteeing future distributions.
Practical Example:
A dividend increasing from 500 to 550 FCFA increases by 10% over the period considered.
Strategy followed by a company to determine the portion of its profits distributed to shareholders and the portion retained to finance its activity and investments.
Practical Example:
A growing company may retain more profits while a mature company may favor regular distribution.
An indicative estimate of a listed company's environmental, social and governance (ESG) risk, on a 0-100 scale split into five bands (0-10 negligible, 10-20 low, 20-30 medium, 30-40 high, 40 and above severe). In the absence of a certified ESG rating for this market, the score combines sector exposure, controversies flagged in recent news and market signals; it does not replace a rating produced by a specialized agency.
Practical Example:
An energy-sector stock with recent environmental controversies will show a higher ESG risk than a financial-sector stock with no controversy.
Investment fund continuously listed on the stock exchange whose objective is to faithfully replicate the performance of a stock market index (e.g. BRVM Composite).
Practical Example:
Buying a BRVM 30 ETF allows you to invest in a single transaction in the 30 largest stocks on the market.
Ex-Dividend Date (Ex-Date)
Returns & Valuation
Date from which a share is traded without the right to future dividend; the opening price is then mechanically adjusted downward by the coupon amount.
Practical Example:
To receive the dividend, you must hold the share before the ex-date.
FCP (Mutual Fund)
Financial Instruments
Co-ownership of financial instruments without legal personality. The saver holds co-ownership shares managed by a management company (SGO).
Practical Example:
Buy 10 shares of an equity mutual fund invested in large capitalizations in the UEMOA.
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Financial Asset
Financial Instruments
Negotiable intangible security or contract which gives its holder rights to future cash flows (dividends, interest, capital gains).
Practical Example:
Stocks, bonds and mutual fund units are financial assets.
Financial Media of the Year (BRVM Awards)
Awards & Markets
Distinction rewarding the press organ or financial information platform which contributes the most to popularization, stock market education and promotion of the UEMOA market.
Practical Example:
Specialized media like Sika Finance or Financial Afrik won the Financial Media of the Year award.
Financing the Real Economy
Markets & Financing
Fundamental role of the stock market consisting of channeling savings from households and institutions to businesses to finance factories, jobs and productive infrastructure.
Practical Example:
A raising of 50 billion FCFA by a telecom operator to modernize its 5G network.
Fixing
Trading & Execution
Quotation method which compares all the orders accumulated at a time T to determine a single equilibrium price maximizing the volume exchanged.
Practical Example:
When the market opens (9:45 a.m.), the price is determined during the opening fixing.
Free Float
Market & Indices
The proportion of a company's shares that are freely available for public trading on the open market.
Practical Example:
A higher free float improves overall liquidity and daily trading consistency.
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Fundamental Analysis
Analysis & Risk
Method of evaluating a company based on the study of its financial accounts (turnover, net margin, debt), its sector and its prospects.
Practical Example:
Analyze the profitability and order book of a bank to estimate the fair value of its stock.
FY (Fiscal Year)
Analysis & Risk
Period of twelve consecutive months over which a company closes its financial accounts and calculates its net income.
Practical Example:
Sonatel's FY 2025 results show an increase in turnover.
Financial operation by which a company opens its capital to the public for the first time and has its shares admitted to trading on the primary market.
Practical Example:
The IPO of a regional bank via a Public Offering of Sale (OPV).
A situation where the share of wealth in growth and exposed capital exceeds that in security and stability. A market fall or a late repayment then weighs heavily on the whole.
Practical Example:
With 5% in cash, 15% in real estate and 80% in stocks, the pyramid is inverted: a stock market crash puts the whole wealth at risk.
Priority order executed immediately at the best prices available in the order book, with no guarantee on the final price.
Practical Example:
Use a market order to quickly buy securities without waiting for a price limit.
Market Timing
Trading & Execution
A strategy of actively choosing when to enter and exit the market by anticipating its rises and falls, rather than staying invested over the long run (buy and hold). Advantage: if executed correctly, it can allow buying low and selling high, potentially improving returns compared to a passive investment. Risk: market movements are very hard to predict consistently, even for professionals; a timing mistake (selling before a rebound or buying back after a rally has already happened) can be costly, and missing just a handful of the best trading days is often enough to severely hurt long-term performance — which is why most individual investors prefer a regular, spread-out investment approach (dollar-cost averaging) over market timing.
Practical Example:
An investor sells all their shares expecting the market to fall, intending to buy back cheaper later: this is market timing, with the risk of missing the rebound if it happens sooner or stronger than expected.
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Net Dividend
Returns & Valuation
Amount actually received by the shareholder per share after the tax withholdings applicable to the gross dividend.
Practical Example:
If the gross dividend is 1,000 FCFA and 100 FCFA is withdrawn, the net dividend received is 900 FCFA.
OPE (Public Exchange Offer)
Markets & Financing
Financial operation by which a company offers the shareholders of another company to exchange their shares for its own securities.
Practical Example:
Acquire a competitor by handing over new shares in exchange for existing securities.
Opening Price
Markets & Indices
First price set at the start of the stock market trading session following the initial comparison of orders.
Practical Example:
The stock opened up 2% compared to its close the day before.
Order Book
Trading & Execution
The electronic list of buy (bids) and sell (asks) orders organized by price level for a specific financial instrument.
Practical Example:
Checking the top 5 bid and ask limits to assess immediate market depth.
P/E Ratio (Price-to-Earnings)
Financial Ratios
The ratio for valuing a company that measures its current share price relative to its per-share earnings.
Practical Example:
A P/E of 12 means investors are paying 12 times annual earnings for one share.
10,000 FCFA
Share price
÷ 1,000 FCFA
Earnings per share
= P/E of 10
Years of earnings paid
P/E = price ÷ earnings per share.
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Par Value (Nominal Value)
Financial Instruments
Face value attributed to a security upon its initial issue, recorded in the company's statutes for shares or used as a basis for calculating coupons for bonds.
Practical Example:
A share with a par value of 1,000 FCFA can sell for 6,000 FCFA on the market.
Payout Ratio
Financial Ratios
Percentage of net profit that a company redistributes as dividends to its shareholders.
Practical Example:
A payout ratio of 80% means that 80% of the profits for the year are returned to shareholders.
Ratio comparing a company's market capitalization to the book value of its equity.
Practical Example:
A PBR below 1 may suggest that a company is undervalued by the market.
Price Variation Limit (Circuit Breaker)
Regulation & Markets
Maximum authorized limit of daily fluctuation of a price (+/- 7.5% at the BRVM) to avoid speculative outbursts or panics.
Practical Example:
A stock that has reached its maximum increase of +7.5% is suspended at this level until the next day.
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Primary Market (The “New” Market)
Markets & Financing
Market on which companies and governments issue new securities (shares or bonds) for the first time. The funds raised go directly into the issuer's cash flow to finance its projects.
Practical Example:
Participate in an initial public offering (IPO) to purchase newly created shares.
Reverse Split
Corporate Actions
The opposite of a split: several old shares are combined into one new share (for example 10 for 1). The number of shares decreases, while the price and the par value are multiplied in the same proportion, without changing the value of the company or of your holding. It is often used when the price has become very low, to give the security a more readable price. A reverse split does not, on its own, fix a company's difficulties.
Practical Example:
You hold 1,000 shares at 100 FCFA (100,000 FCFA). After a 10-for-1 reverse split, you hold 100 shares at 1,000 FCFA: still 100,000 FCFA. If your number of shares is not divisible, the remainder is usually paid out in cash.
Before the reverse split
1,000 shares
Price: 100 FCFA
Holding value: 100,000 FCFA
After the reverse split (10 for 1)
100 shares
Price: 1,000 FCFA
Holding value: 100,000 FCFA
10-for-1 reverse split: fewer shares, a higher price, an unchanged total value.
Risk of Capital Loss
Analysis & Risk
Possibility of losing part or all of the sums invested in the event of a lasting drop in prices or failure of the issuing company.
Practical Example:
Stocks do not guarantee capital; you should only invest your long-term savings.
ROE (Return on Equity)
Financial Ratios
Return on equity, measuring a company's ability to generate profits from the equity invested by shareholders.
Practical Example:
An ROE of 18% demonstrates strong financial profitability for investors.
ROI (Return on Investment)
Financial Ratios
Performance indicator measuring the gain or loss generated by an investment in relation to the amount initially committed.
Practical Example:
Calculate the ROI of a stock portfolio to assess its overall effectiveness.
Daily trading market where investors buy and sell already issued securities. Funds circulate only between investors without passing through the company.
Practical Example:
Buy Sonatel shares from another individual on the BRVM order book.
Approved financial company responsible for the constitution, strategic management and development of collective portfolios (FCP and SICAV) on behalf of savers and institutional investors.
Practical Example:
Entrust your savings to an SGO by subscribing to shares in a diversified FCP.
SGP (Asset Management Company)
Market Participants
Approved company dedicated to the discretionary management of securities or UCITS portfolios on behalf of private or institutional clients.
Practical Example:
Entrust your capital to an SGP so it can manage investments according to a defined risk profile.
SICAV
Financial Instruments
Investment Company with Variable Capital. Limited company with legal personality whose exclusive purpose is the management of a portfolio of transferable securities.
Practical Example:
By purchasing shares of a SICAV, the investor becomes a shareholder of the fund.
An operation in which a company divides each existing share into several smaller shares (for example 1 for 10). The number of shares outstanding is multiplied, while the price and the par value are divided in the same proportion. The value of the company, its market capitalization and the value of your holding do not change: a split is neither a gain nor a loss. It simply makes the security more affordable and more liquid for small investors. The dividend per share is divided as well, but since you hold more shares, the total dividend you receive stays the same.
Practical Example:
You hold 100 shares at 50,000 FCFA (5,000,000 FCFA). After a 10-for-1 split, you hold 1,000 shares at 5,000 FCFA: still 5,000,000 FCFA. A dividend of 2,000 FCFA per share becomes 200 FCFA per share, i.e. 200,000 FCFA in total in both cases.
Before the split
100 shares
Price: 50,000 FCFA
Holding value: 5,000,000 FCFA
After the split (1 for 10)
1,000 shares
Price: 5,000 FCFA
Holding value: 5,000,000 FCFA
10-for-1 split: the number of shares is multiplied by 10, the price divided by 10, the total value does not move.
Spread
Trading & Execution
Difference between the best buy price (Bid) and the best sell price (Ask) in the order book.
Practical Example:
A tight spread (e.g. 10 FCFA) demonstrates the excellent liquidity of the security.
Statistical indicator measuring the overall change in the value of a representative basket of securities on a market.
Practical Example:
The BRVM Composite brings together all the values listed on the BRVM.
Stop Order (Stop Loss)
Trading & Execution
Conditional order which becomes active as soon as a predefined price level is reached, allowing you to cut losses or protect gains.
Practical Example:
Set a sales threshold at 9,000 FCFA to limit losses if the stock falls.
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Sukuk (Islamic Bond)
Financial Instruments
Financial security conforming to the principles of Islamic finance, backed by a tangible asset and generating profits rather than usurious interest (riba).
Practical Example:
The issuance of Sukuk by a WAEMU member state to finance transport infrastructure.
Support and Resistance
Analysis & Risk
Key price levels on a chart: support is a low threshold where the decline is slowed by buyers, resistance is a high threshold where the rise comes up against sellers.
Practical Example:
The stock rebounds regularly upwards as soon as it touches its support of 8,000 FCFA.
A qualitative analysis framework for a company or listed stock along four axes: Strengths, Weaknesses, Opportunities and Threats. It complements financial ratios with a strategic reading of the business.
Practical Example:
A SWOT analysis of a listed bank might cite a dense branch network as a strength, and competition from mobile banking as a threat.
Public offer launched by a buyer aimed at purchasing for cash all or a specific part of the capital of a listed company.
Practical Example:
Offer a 20% premium on the current price to buy the shares of a target company.
Technical Analysis (Chartism)
Analysis & Risk
Graphical study of historical prices and volumes to identify trends and anticipate entry or exit points.
Practical Example:
Identify a support or bullish pattern to plan a buy order.
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Trading Volume
Trading & Execution
The total amount of shares transacted between buyers and sellers over a given session or period.
Practical Example:
A sharp price rally accompanied by high volume confirms strong buyer commitment.
UCITS
Financial Instruments
Undertaking for Collective Investment in Transferable Securities. Financial vehicle (SICAV or FCP) allowing investors' savings to be grouped together to place them in a diversified portfolio managed by professionals.
Practical Example:
Subscribe to a bond mutual fund to limit your exposure to stock fluctuations.
Volatility
Analysis & Risk
Measurement of the amplitude and speed of price variations of a financial asset over a given period; direct indicator of the level of uncertainty.
Practical Example:
A stock whose price frequently varies by +/- 6% per session presents high volatility.
Wealth Diversification
Analysis & Risk
Spreading wealth across several asset classes (stocks, bonds, real estate, bank savings), sectors or regions, to reduce dependence on the performance of a single asset and limit overall risk.
Practical Example:
Wealth split between BRVM stocks, a rental property and a savings account is better diversified than wealth made up of a single stock.
A view of wealth as four stacked levels, from base to top: security (available cash), stability (real estate and locked savings), growth (listed securities) and exposed capital (money lent to third parties). A wide base and a narrow top point to solid wealth; an inverted pyramid points to fragile wealth. Debts are deducted from the whole.
Practical Example:
Wealth of 100 million FCFA made of 25 million in cash, 40 million in real estate and long-term savings, 30 million in stocks and 5 million in loans granted forms a balanced pyramid.
Weighted Average Cost (CMP / Average Purchase Price)
Returns & Valuation
The average purchase price of a security within a portfolio, weighted by the quantity bought at each purchase. Also called the average cost basis per share, it is the reference used to calculate unrealized gain or loss by comparing it with the current price.
Practical Example:
An investor buys 10 shares at 1,000 FCFA then 10 more at 1,200 FCFA: the weighted average cost is 1,100 FCFA, regardless of the price shown afterwards.
Yield to Maturity (YTM)
Financial Ratios
The real rate of return on a bond held to maturity, taking into account all future coupons and the spread between the purchase price and redemption at par.
Practical Example:
Buying a bond below par allows you to obtain an actuarial yield higher than the nominal coupon rate.
Term often used to designate the actuarial yield or the overall rate of return generated by a bond taking into account its acquisition price and its coupons.
Practical Example:
Calculate the YTB of a sovereign bond to compare its profitability with a bank investment.
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