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.
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.
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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.
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%.
A debt security issued by a government or corporate entity where the investor lends capital in exchange for periodic interest (coupons).
Practical Example:
A government treasury bond paying an annual coupon of 6%.
An accredited financial intermediary authorized to place and execute market orders on the regional financial market.
Practical Example:
Opening a securities account with an authorized broker to trade BRVM shares.
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.
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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.
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.
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.
CAGR (Compound Annual Growth Rate)
Financial Ratios
Geometric growth rate measuring the annualized return of an investment over a period of more than one year.
Practical Example:
The company's turnover CAGR stands at 12% per year over the last 5 years.
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An increase in the value of an asset when sold above its initial purchase cost.
Practical Example:
Buying at 5,000 FCFA and selling at 7,000 FCFA yields a gross capital gain of 2,000 FCFA.
Issuance of new shares by a company in order to raise fresh funds to finance its growth or repay debt.
Practical Example:
A company issues 500,000 new shares at a unit price of 4,000 FCFA.
Financial loss suffered when an asset is sold at a price lower than its acquisition cost.
Practical Example:
Selling a share bought for 4,500 FCFA for 4,000 FCFA generates a loss of 500 FCFA.
The final price at which a security traded during regular market hours on a specific trading day.
Practical Example:
The closing price serves as the benchmark to calculate next day's performance.
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).
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Trading mode where transactions are executed as soon as a buy order and a sell order meet on price.
Practical Example:
BRVM shares are traded continuously from 9:45 a.m. to 2:45 p.m.
Periodic interest paid by the issuer of a bond to the holder of the security on dates fixed in advance.
Practical Example:
A bond with a nominal value of 10,000 FCFA with a coupon of 6.5% pays 650 FCFA per year.
DC/BR (Central Depository / Settlement Bank)
Market Participants
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.
The portion of corporate net profits distributed to shareholders proportionally to the shares they hold.
Practical Example:
A company distributing a net dividend of 500 FCFA per share.
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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.
Date on which the dividend is actually paid to shareholders who meet the conditions to benefit from it.
Practical Example:
A company can set a detachment date of May 20 and a payment date of May 27.
Amount of dividend allocated to each share held for a given financial year. It can be expressed gross or net depending on the context.
Practical Example:
A net DPA of 750 FCFA means that a shareholder receives 750 FCFA for each eligible share.
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.
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
Practical Example:
A 500 FCFA dividend for a 10,000 FCFA stock price yields 5%.
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DPS (Preferential Subscription Rights)
Financial Instruments
Right granted to existing shareholders allowing them to purchase new shares as a priority during a capital increase to avoid dilution.
Practical Example:
A shareholder can exercise his PSRs to subscribe or sell them on the market if he does not wish to reinvest.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
Financial Ratios
Financial indicator measuring the gross profitability of a company's operations, before deduction of interest, taxes, depreciation and amortization.
Practical Example:
EBITDA makes it possible to compare the gross operating performance of companies in different sectors.
A company's net income divided by the total number of shares making up its capital.
Practical Example:
A result of 1 billion FCFA for 1 million shares corresponds to an EPS of 1,000 FCFA.
English equivalent of EPS (Earnings Per Share), calculated by dividing net profit by the total number of shares outstanding.
Practical Example:
An increasing EPS reflects an improvement in profitability per share.
Financial security (share) conferring a direct fraction of the capital of a company and associated rights (voting, share of profits).
Practical Example:
Owning shares makes you a partner or co-owner of the company.
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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.
ETF (Tracker / Index Fund)
Financial Instruments
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.
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.
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.
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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.
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.
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.
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.
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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.
Amount of the dividend per share before the application of any tax and social security contributions potentially owed by the shareholder.
Practical Example:
A gross dividend of 1,000 FCFA per share may result in a lower net dividend after tax withholding.
Initial public offering (IPO / OPV)
Markets & Financing
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).
The length of time an investor plans to hold financial assets without an immediate need to smooth out volatility.
Practical Example:
A recommended horizon of 3 to 5 years minimum for a portfolio invested in stocks.
An order to buy or sell a security at a specified maximum buy price or minimum sell price.
Practical Example:
Placing a limit buy order at 1,500 FCFA guarantees execution at 1,500 FCFA or better.
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The total market value of a company's outstanding shares, calculated by multiplying total shares by current price.
Practical Example:
10 million shares trading at 2,000 FCFA represent a market cap of 20 billion FCFA.
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.
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.
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.
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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.
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.
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.
Percentage of distributable profit or net income that a company pays as dividends to its shareholders.
Practical Example:
A payout of 60% means that 60% of the benchmark profit is distributed, while 40% is retained by the company.
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PBR (Price to Book Ratio)
Financial Ratios
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.
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.
Opposite operation of splitting, combining several old shares into one new share with a higher par value.
Practical Example:
Group 100 shares of 10 FCFA into a single share worth 1,000 FCFA.
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.
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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.
SGO (UCITS Management Company)
Market Participants
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.
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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.
One-off distribution which may be added to the ordinary dividend and which may result from an exceptional event or situation in the company.
Practical Example:
A company can distribute an exceptional dividend after the sale of a significant asset.
Operation consisting of dividing the par value of a share to multiply the number of shares in circulation, making the security more accessible to small savers.
Practical Example:
A split by 10 divides a share of 50,000 FCFA into 10 shares of 5,000 FCFA.
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.
A security representing fractional ownership in a corporation, giving voting rights and eligibility for dividend payouts.
Practical Example:
Buying a Sonatel (SNTS) share confers partial ownership of the company.
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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.
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.
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.
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.
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Takeover bid (Tender Offer)
Markets & Financing
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.
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.
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.
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.
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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.
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.
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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