Common Shareholder Number (CSN) is a 9 digit character number that can be found on the top right hand corner of your holding statement and other shareholder communications. A Holder Number commences with an 'R' and is followed by a 9 digit character number.
The CSN or Holder Number can be found on the top right hand corner of your Security Transaction Statement and other Investor communications.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Acceptance of an Offer - Notification by a party to accept the terms of an offer made by another party. For example, in a Rights Issue, the Investor will notify acceptance of an offer made by the Issuer.
Acceptances must be forwarded to the Registry.
Account designations are generally registered the following reason:
Holdings cannot be registered directly in the name of a minor, deceased estate or trust. In this case, the holding may be registered in the name of the parent(s), executor(s), administrator(s) or trustee(s) with an account designation.
The selected time period for which financial reports are prepared, normally one year but listed companies also prepare and disseminate half-yearly interim financial reports.
This is the unique number your bank gives your account.
A Latin term meaning improvised and often impromptu.
An individual appointed by a probate court to handle the estate of a person who died intestate. They have the same duties as an executor.
An Admitted Legal Practitioner is a Lawyer, Solicitor or Barrister.
Third party provider, for example, Link is an agent of the Issuer.
The process of totalling the unit quantity or settlement amount of individual settlement instructions, which are settling on the same holding or through the same payment facility, in the same settlement cycle.
A barometer of the sharemarket based on movements in the market value of a number of companies traded on the sharemarket.
The NZX All Index is a broad market index. It comprises all securities quoted on the NZX Main Board of New Zealand Listed Issuers that are of a class eligible for indexation.Launched start of 1987; historic data available back to base value of 1000 on 30 June 1986
The index is made up of the weighted share prices of all eligible securities on the NZX Main Board. Established by NZX in 1987 at a base value of 1000 points on 30 June 1986, it is the predominant measure of the overall performance of the New Zealand sharemarket. The companies are weighted in the index according to their NZ Free Float Market Market Capitalisation (total market value of a company's shares).
Issue (allotment) of new securities to an Investor and the recording of this issue on the register.
When comparing any two holdings there may be differences in either the name or address. Some differences will be so minor that the two holdings can be considered the same. These differences are the 'allowable differences'.
An option or warrant contract allowing holders to exercise at any time up to and including the expiry date. American Style is the most common options listed on NZX. Compare with European Style Option.
Chairman's report at the Annual Meeting (AM) of a listed company or any information provided by a listed company. An official announcement is typically regarding new share issues, expansion moves and others, which are likely to affect market movement. Listed companies are legally bound to report these announcements to the stock exchange allowing those Investors not attending the AM to act promptly on the information. See also NZX Listing Rules.
The Annual Meeting (AM) is a meeting of a company's members (shareholders) which is required by Law. A public company must hold an AM at least once in each calendar year and within six months after the end of its financial year.
The business of an AM may include any of the following:
Shareholders vote on board elections and significant company issues.
The report to Investors issued each year setting out the Issuer's activities and its financial statements.
The annual report contains profit and loss statements, balance sheet and a statement of cash flow, as well as notice of the Annual General Meeting (AGM) and business resolutions.
Annual yield is the dividend return from an investment. To calculate the annual yield divide the dividend per share by the share price, then convert to a percentage. Also known as dividend yield.
Yield = (Dividend per share / Last market price) x 100.
Annualised Return is the profit received to the writer of the option contract for buying the shares and writing that contract.
A form or submission of information by an applicant to apply for securities.
A declaration and indemnity signed by an individual or an officer of a company to enable the reissue of a lost certificate.
The allocation of a portion of retained earnings (balance of profit and loss appropriation account) for a particular purpose, for example, to provide for a proposed dividend.
Arbitrage relates to buying and selling of the same or equivalent securities in different but related markets.
Date upon which the relevant information is recorded.
Net assets of a company (in $) are decided by the number of issued shares. For example, ABC Ltd with $100,000 net assets and 10,000 shares issued has an Asset Backing of $10 per share.
A broad category of assets, e.g. shares, cash, property.
Resources owned by a company or person. Assets can be divided into a number of different categories based upon their liquidity that is, the ease with which they can be converted to cash. The categories are current assets, investments, fixed assets and intangible assets.
AUD=Australian Dollar.
The 3-letter international currency code is normally the 2-letter country code (AU=Australia) followed by the first letter of the country's currency name (D=Dollar).
A formal verification of the accuracy of accounting records and published accounts. An audit can be external or internal and is undertaken both to ensure the correctness of classifications and amounts and to discover fraud. The external auditor has a statutory responsibility to report on the truth and fairness of the accounts.
A person appointed and authorised to audit or examine an account or accounts.
A statutory statement by the auditors of a company to its Investors in the annual report.
The time by which banks must give final and irrevocable authorisation for Participants funds commitments for that day's settlement.
The maximum share capital which an Issuer is authorised by its constitution to issue to subscribers. Authorised capital is also referred to as Nominal Capital.
A pre-determined exact quantity of units which has been authorised to be able to alter the issued capital of a specified security as a result of a corporate action (allotment) or special off market transactions (placements).
The difference between the total holding and the securities reserved in for sale.
Bad debts are losses which cannot be recovered. They are generally written off.
This is the how many shares you hold in a specific security. You can check your balance through the Link Market Services Investor Centre.
The completion of an accounting period - typically 31 March for the majority of New Zealand companies.
A bank cheque is a cheque drawn by a bank on itself. Bank cheques are issued, as a service, to customers who do not have a cheque account or who require a bank-backed cheque to pay for goods or services.
Bank cheques are normally accepted as the equivalent of cash and goods or services are immediately given against them. Sometimes, especially for large transactions, the safety and convenience of bank cheques is preferred to cash.
A person who is declared bankrupt (either at his/her own request, or at the request of his/her creditors) is unable to pay his/her debts when they are due.
Their estate is placed in the hands of a receiver or trustee who will distribute the estate according to the provisions of the Insolvency Act. It should be noted that insolvency applies to an individual; the equivalent status for a company is receivership or liquidation.
A market in which prices decline sharply against a background of widespread pessimism. The opposite of bull market.
See also Bull Market.
A comparison, between the performance of a fund, against an index.
The trade and settlement system operated by the New Zealand Clearing Corporation Limited
Person/s or entity deemed to be the rightful owner of securities.
In most cases the person or company names as the Investor on the register of members is the beneficial holder. It is possible for a third party to hold securities on behalf of a beneficial holder.
A person who gains or benefits from a will.
A measure of market sensitivity, that is, the extent to which a share or a portfolio fluctuates with the market. It gauges the movement of a particular commodity's price against a related composite index.
The whole market, by definition, has a beta factor of 1.0. If a stock has a beta of less than 1.0, its price is expected to rise or fall proportionately less than the market, while stocks with a beta greater than 1.0 are expected to rise or fall more than the market as a whole. The higher the beta, the higher the price volatility.
A bid is the "buying" price that an investor is prepared to pay for shares (opposite to offer). See also Offer.
A negotiable instrument that is often used as a method of raising funds privately. It is an unconditional order in writing requiring the party to whom it is addressed, and who accepts the bill (known as the acceptor), to pay a certain sum on a fixed date in the future. The acceptor assumes primary liability to pay on maturity the face value of the bill to its holder.
If the acceptor fails to pay the bill, the drawer who issues the bill is liable. If the bill has been endorsed by a third party, such as a bank, the endorser is liable should both the acceptor and the drawer fail to pay.
Bills of exchange usually mature within six months and are sold at a discount to face value.
Shares of a company known for its ability to make profits in good and bad times. The term has become a generic one for quality securities.
Those people who have been elected to direct the running of a company. Directors must be re-elected regularly to retain their position. They may be executive or non executive.
A loan for a fixed period of time at a fixed rate of interest which can be traded on the sharemarket. Generally issued by a government or semi-government body, as a tradeable debt Security to raise money. Holders receive a fixed rate of interest for their loan. Once the maturity date is reached the bond is repaid with interest.
Issue of shares to existing Investors without any monetary cost on a rights basis.
A Bonus Issue is the allocation of new shares to existing Investors, at no cost to the Investor. When Investors receive a Bonus Issue the actual value of their holding should not change, but the holding itself will increase in size.
Bonus Issues sometimes take place because the current market price of shares is considered to be too high, for example, over $20. By running a Bonus Issue, the number of shares in the company will increase, but the total value will remain the same, thus bringing down the price of the shares. A lower share price will make the shares more affordable to more people, therefore increasing liquidity.
For example, if an Investor held 1000 shares in Gadgets & Widgets Ltd and the shares were trading at $20, the holding would be worth $20,000. In a 1-for-5 Bonus Issue, the Investor would receive 1 new share for every 5 he owns. The share price will adjust to $16.66, calculated as $20 multiplied by 5, divided by 6. The amount of new shares issued will be 200 giving a total holding of 1200 shares @ $16.66 = $19,992 which is almost the value of the original holding, allowing for rounding.
Please note that the example given above is theoretical. The market will always determine the share price. Even in the case of a Bonus Issue, there may be other factors which will affect the price. For example, Resignation of CEO may see Investors may lose faith in the company and market could be flooded with shares which would make the price plummet if there are no prospective Investors (theory of supply and demand).
A process by which institutions participating in a float trade shares with each other in order to determine a final unit price which can then be used as the basis to allocate shares to all applicants who applied for shares in a float.
An agent who handles Investor's orders to buy and sell securities, commodities, insurance policies or other property. For this service a commission is charged which depending upon the broker and the amount of the transaction may or may not be negotiated.
This may include a broking firm or investment house that is an accredited participant of the NZX.
Electronic transfer of stock from one holder to another through a Stock Broker. In this instance the Stock Broker locates a buyer or seller through the Stock Market according to their clients instructions.
A Fee paid to stockbroking firms for buying or selling of shares. It is usually calculated as a percentage of the amount you invested.
A market where it is generally anticipated that the market will rise.
The opposite of bear market.
See also Bear Market.
The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. The five stages of the business cycle are growth (expansion), peak, recession (contraction), trough and recovery.
Hours when businesses are in operation. The conventional business day is 8.30 A.M. to 5.00 P.M Monday to Friday. This excludes all NZX non business days and public holidays.
The purchase by an Issuer of its own shares. When shares are bought back by the Issuer they are cancelled and no longer exist, therefore reducing the overall number of shares on the company's register.
This may be done in an attempt to increase share price (less shares, increased market value - theory of supply and demand). An Issuer has the right to purchase their shares back from the Investors in order to reduce the Capital for a greater share in the profits, or to remove shareholdings that are not of a marketable parcel.
The purchase can occur either on or off-market.
A call option is the right to purchase a parcel of shares at a pre-determined price within a specific period of time. There will be an initial price paid for the shares. The Investor then owns part paid shares and the call option. At a later date (call date) the Investor will take up the call option and pay the remaining amount making the partially paid shares fully paid shares.
If a company is a no liability company, then the call is not enforceable, and the Investors are entitled to forfeit their shares as an alternative to meeting the call. If the company has limited liability, then the call is enforceable at law.
A letter sent to Investors requesting payment of calls.
A contract which entitles (but does not require) its holder to buy a fixed number of shares (usually 1000) in an underlying company at a predetermined price at any time prior to or on the specified expiry date.
At times a cap is applied to a warrant at the time of issue which caps the upside potential of that warrant. This is usually fixed by the issuer and details are provided in the disclosure document.
Any asset or stock of assets capable of generating income. This can include funding in assets, funding for operation of a business, or assets such as property or shares.
Capital Conversion is when shares are moved between different trading and/or working classes on the system. An example of this is shares which are issued with restrictions and cannot be traded for 12 months from allotment. When the 12 month period expires, they will need to be transferred into a class where trading is enabled.
This is common place with Employee Share Plans.
Funds spent for the acquisition of a long-term asset. In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a capital expenditure, it needs to be capitalized; this requires the company to spread the cost of the expenditure over the useful life of the asset.
If, however, the expense is one that maintains the asset at its current condition, the cost is deducted fully in the year of the expense.
The difference between the sale price of a capital asset and its cost.
Capital growth is where an asset increases in value. Capital gain occurs when the growth of capital is sold at a higher price than the original purchase price.
Restructuring of an Issuer's issued capital structure. For example, when a $1.00 share is split into two $0.50 shares.
Profits retained in the business and set aside for specified purposes. This is not available for distribution as a dividend for:
Cash covered is referred to as a derivatives position. For example, a written option contract where, cash is used by the option writer to meet their margin obligations.
Cash extraction is where investors extract cash from a portfolio while maintaining an equivalent level of exposure to the underlying securities. Investors can replace the shares in their portfolio with instalment warrants over the same shares.
The amount of money, which flows in and out of a business, the difference between the two being the important number. If more money flows into a business than out of it, it is cash positive. If more money flows out than in, it is cash negative. Cash flow is regarded by many as the ultimate test of financial health.
A new issue of securities for cash for the purpose of raising additional capital for the company. This can be a bulk offer of existing securities to new Investors, or an offer made to existing Investors in proportion (e.g. 1 new security for every 2 securities held) to their existing shareholding. It is usually issued at a discount to the market price.
A cash settled warrant is where the warrant issuer settles via cash payment to the warrant holder. The cash payment is determined by the terms and conditions of the warrant. In some instances investors can choose cash settlement or physical delivery.
An expression used in futures and index options trading which applies when physical delivery is impractical and contracts are settled by attaching a monetary value.
The Participant, within a Participant group, that is designated as the source of the common settlement holding for the group.
A certified copy is a photocopy of an original document signed by a Justice of the Peace or someone that is authorised to witness a Statutory Declaration.
It is signed to say that they have seen and can verify that the copy is a true and correct copy of the original document.
The person elected to head a board of directors.
An entity that is owned by a parent or holding company.
Types of listed securities that are differentiated by the level of voting rights shareholders receive. For example, a listed company might have two share classes, or classes of stock, designated as partly paid and fully paid.
Class of options are contracts in the same underlying security of the same type, which can be wither call or put options.
A Client is;
A fund which has a fixed number of issued shares traded on a stock exchange. Because the supply of shares is limited, they will rise and fall in value according to supply and demand just like ordinary company shares.
The selling of an option which has been bought in the same series.
The purchase of an option, by a writer, which has the same terms as an option which has previously been sold. This transaction terminates his/her obligations as a writer.
A legal entity regulated by the New Zealand Companies Office under the Companies Act.
The complete name, as reported to the NZX of a listed company.
Company options are options issued by a company over unissued shares.
They will have an exercise price, and an expiry date. For example, XYZ $1.00 expiring on June 30 2008, and are listed on the NZX until that date. Provided the share price at the time of expiry is above the exercise price, the option holders will exercise their option by paying the exercise price and be issued with a new share in the company, which will then rank equally with other ordinary shares.
Companies report within their annual report the basic and diluted earnings per share (EPS) results.
A person who is responsible for the record keeping of the company.
The process of ensuring that a company and its employees adhere to relevant laws, statutory regulations, codes and standards, legislative and contractual obligations.
Compound DRP means that your partial participation will increase by the amount of shares you are allotted ie; if you hold 1,000 shares and elect to participate partial DRP of 300 to compound, then if you are allotted 10 shares via the DRP, your partial DRP participation for the next dividend will be 310, unless you notify Link otherwise.
During a takeover bid, Investors will be invited to part with a specific proportion of their holdings. Acquisition of over 90% of the shares from more than 75% of the Investors is required before a compulsory acquisition can occur.
If these conditions are met, the offerer can then compulsorily acquire the balance to mop up the shares belonging to non-acceptors (dissenters), including deceased estates and Investors who have disappeared.
It is the conditional level enforced by an Issuer for a corporate action to proceed. For example, in the case of buyback, the Issuer may impose that a certain % of holders must accept the buyback process or a certain % of shares must be accepted for buyback before the offer for buyback is withdrawn.
Price paid to purchase shares.
A combination of the financial statements of a parent company and its subsidiaries, presenting the financial position of the group as a whole. The statements report the combined operating results, financial position, and cash flows of two or more legally separate but affiliated companies as if they were one economic entity.
Consolidation is a form of reconstruction. It is the combining of a company's shares (from a larger number of shares) into a smaller number of shares, each with a correspondingly higher market value. The total value of any Investor's holdings is not affected by the consolidation. Sometimes consolidations are made to avoid a "penny dreadful" image. For example, converting ten 20 cent shares into one $2 share.
The opposite of a share split.
Rules governing a company.
An economic event, gain or loss, that is in the process of occurring or not occurring.
The possibility of an obligation to pay certain sums dependent on future events.
A written document, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note details the number of shares, all associated costs, and the type of security.
The minimum amount of a commodity or financial instrument which can be traded in a futures or option market. This is standardised to 1,000 underlying shares.
Shares on which only part of their par value (formerly the share premium) has been paid. For example shares may be issued with a par value of $1.00, of which only 50 cents has been paid, with a further 50 cents still owing. At the call date, the Investors of no liability companies can forfeit their shares instead of paying the call. Also known as Partly Paid Shares.
Contributing shares are similar to partly paid shares, with the exception that a date for the payment of the call date has not been set by the Issuer.
The movement of a futures price towards that of the underlying instrument as the contract date approaches.
The cancellation of certificates and recording of the shares in an uncertificated holding, or the change of class of Security (options, notes, etc) to another (fully paid).
The number of ordinary shares obtainable on the conversion of one convertible preference share or convertible note. For example, a ratio of 1:5 means that every one share will be converted to five shares. This could include conversion of one employee share to five fully paid shares once escrow or loan periods have lapsed).
Debentures are fixed interest securities issued by limited companies in return for long term loans. Convertible debentures carry an option at a fixed future date to convert the stock into ordinary shares at a fixed price. This option is compensated for by a lower rate of interest than an ordinary debenture.
Convertible debentures are attractive since they offer the Investor the prospect of purchasing equity shares cheaply in the future, without sacrificing his/her Security.
For this reason, convertible debentures are issued at times when it is difficult to raise capital either by equity or fixed interest Security.
Security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder.
Convertible notes are financial securities issued to an Investor by a company in return for cash.
It is traded on the share market and normally accrues a fixed interest rate during its life. The notes give the holders the right at specified times to convert the loan to shares on a specific date or redeem them for cash. It differs from a debenture in that it offers the Investor the option of converting the loan at a later date into equity (shares) in the issuing (borrowing) company.
These shares have a specific date at which they are redeemable (i.e. exchanged for cash by the issuing company).
They are broadly similar to convertible notes, in that they may be converted to ordinary shares, though the holders of redeemable preference shares rank after note holders (but ahead of ordinary Investors) should the issuing company be liquidated or placed into receivership.
Security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder.
A series of specialised processes that usually involve some kind of action being taken on each Investors holding at a specified date. They may be carried out by the registry on behalf of the Issuer. Examples of Corporate Actions include Rights Issues, Bonus Issues, Dividends or other payments, or offers under a Buy Back scheme.
An Act of the New Zealand Parliament dealing with nearly all aspects of companies. It replaced previous company legislation with effect from 1 July 1994. The purpose of the Act is:
Costs incurred as a result of an investment position. These costs can include financial costs, such as the interest costs on bonds, interest expenses on margin accounts and interest on loans used to purchase a security, and economic costs, such as the opportunity costs associated with taking the initial position.
The annual rate of interest paid by the issuer of a bond until maturity.
Someone to whom money is owed. A company's creditors are other companies, individuals, and perhaps the government to which it owes money in return for goods supplied, services rendered and taxes for which it is liable.
Common Shareholder Number (CSN) is a 9 digit character number that can be found on the top right hand corner of your holding statement and other shareholder communications
Meaning "with".
When a company announces a rights issue, existing shareholders get the right to buy new shares, usually at a discount to the current share price. When a share is cum rights, it means that it is offered for sale with any associated rights. When it is ex rights it is offered for sale without the rights. The share price of the shares will be higher cum rights than it will be ex rights.
The part of an Investor's holding that is cum i.e. the part, which will participate in a defined corporate action. The cum balance plus the ex balance must always equal the Investors record date (books close) balance.
The period between the declaration of a dividend and the last day to register. The new shareholder will be entitled to the dividend. Sold after this date the shares become 'ex div' and the dividend will accrue to the previous shareholder who has sold his shares.
Dividends on cumulative preference shares that accrue as a commitment of the company if they are not paid in any year. Arrears of cumulative preference dividends must be paid before any dividends are paid to ordinary Investors.
Unless specifically stated to be non-cumulative, dividends on all preference shares are deemed to be cumulative.
A type of preference share. The term means that if any year's preference dividends are not paid out (for example, due to lack of profitability), then all arrears must be paid off before payment of ordinary dividends is permitted.
Dividends on non-cumulative preference shares, however, are looked at only one financial year at a time and Investors have no protection against missed declarations.
Notes and coins that are the current medium of exchange in a country.
Detachable options in securities issues giving the holder the right to purchase additional securities denominated in a currency different from that of the original issue. The coupon and the price of the securities covered by the warrant are fixed at the time of the sale of the original issue.
Assets of a company which are regularly turned over including cash, work in progress and debtors. These are generally converted into cash with twelve months after the end of the financial year for the company.
Debts owed by a company which are due for settlement within 12 months. These include creditors and taxes due etc.
An entity or nominee holding that usually safeguards and maintains assets (such as shares) on behalf of Investors until a certain event occurs at which point the Investors gains full access to the assets.
Example includes Employee Share Plans where the shares are allocated to the custodian and not available to the employee until the shares are fully paid for.
The date on which the Issuer makes its dividend or interest payment to Investors.
Fixed interest securities issued by limited companies in return for medium to long term loans. Also used to refer to any title on a secured interest bearing loan. Debentures are dated for redemption (i.e. repayment of their nominal value by the borrower to the holder) between ten to forty years ahead but occasionally may be irredeemable.
Debentures are usually secured by a trust deed which spells out the terms and conditions of the fundraising and the rights of the debenture holders. The funds of the debenture holders are usually secured by a charge over the assets of the borrowing company.
Debenture interest must always be paid regardless of whether the company makes a profit. In the event of non payment, debenture holders can force liquidation and rank ahead of all Investors in their claims on the company's assets.
Debentures shares are most appropriate for financing companies whose profits are stable and have substantial fixed assets such as property companies.
An obligation by one individual or company to pay a specific amount of money to another party.
Money raised by selling bonds, the principal and interest on which must be repaid.
The increase of liabilities to fund operations through the issuing of debentures or bonds.
A security such as a bond or note with specified interest, representing a loan which is repayable at some future date.
A measure of a Company's gearing (borrowing) which is calculated by dividing all financial debt by Investors' funds (equity).
The assets or holdings left behind by a person (Investor) at the time of death.
A person (Investor) who failed to do what was legally required, usually referring to failure to pay a debt that has fallen due. This can involve owing an amount to an entity normally in the case of owning partially paid securities and not being able to make payment on a call notice, made by a Registry.
Deferred shares are inferior to a company's ordinary shares in a defined way. For example, they may be shares which do not currently participate in dividends for a defined period of time, may be a non voting share, or may receive less favourable treatment in the event of a liquidation.
Same as Deferred Delivery, but applicable to trades occurring on the New Zealand Stock Exchange.
The removal of a company's shares from listing on the stock exchange. This may occur because the company has failed to comply with the exchange's rules, or no longer meets listing requirements, for example it has been taken over.
The settlement by transfer of the underlying asset upon exercise and after the payments are made.
The irrevocable exchange of unconditional securities for unconditional same day funds to settle an obligation.
The delivery of securities in exchange for an asset, usually money. One of two methods for the delivery of securities, the other being delivery vs. receipt.
See Delivery vs. Receipt
The delivery of securities in exchange for a signed receipt for the securities. One of two methods for the delivery of securities, the other being delivery vs. payment.
See Delivery vs. Payment
The measure of the rate of change of an option or warrant's price compared to the change of price of the underlying instrument.
The disintegration of a company into separate operations in the expectation that this will enhance performance.
Demutualisation involves changing from a mutual company to a shareholder owned company.
Members are issued shares in exchange for their membership rights. Demutualisation separates the rights as a member from the investments or other rights as a policyholder.
Depository Interests are the debt/bearer component of Foreign Depository Interests and apply to both foreign and domestic securities.
A financial instrument or product that derives its value from the price of another security, liability or index. For example, options, swaps, forwards, futures contracts or warrants. A derivative is known as synthetic.
A standardised descriptor used to provide further identification for an Investor's account. For example, trusts must be registered in the name of the trustees, not the name of the trust. The trustees are registered as joint holders with the trust as a designated account.
Earnings per share adjusted for the existence of options and convertible securities. Diluted earnings should always be used if these are lower than undiluted earnings.
Instruction given by the Investor stating the account that their interest and dividends are to be paid into.
A service whereby a Investor's dividend, interest or trust distribution payment is credited directly into the Investor's bank account.
Persons elected by Investors to collectively be responsible for the management, operation and implementation of corporate objectives. The directors have legal, moral and professional obligations to run the enterprise for the benefit of all Investors. Directors report to the Chairperson.
A public company must have at least three directors; a proprietary limited company must have at least two.
An executive director is a director who is also employed by the company.
A non-executive director is not employed by the business.
A booklet outlining the risk factors associated with an investment and providing full information for an investor.
(a) In the case of Link, discount is the percentage discount, to the current market price, at which Dividend Reinvestment Plan (DRP) shares are allotted, if applicable.
(b) The excess of the nominal, face or par value of a Security over its price. It is the amount by which a Security sells below its net tangible asset backing. Securities are traded at a discount on the assumption that the buyer will receive face value when the securities mature. It is the opposite of premium.
Due to insufficient funds in the drawer's account, a bank will fail to process (honour) the cheque.
During a takeover, Investors in the target company are asked to accept or reject the offeror's bid. Investors who reject the takeover offer are known as dissenters or dissenting Investors.
The payment of a dividend by a company out of its profits. These are allocated on a per unit basis.
For an Investor: The process used to describe how an Investor can have a specified number of units removed from their holding and placed under custodial control. This is typically due to some breach of rules such as owning an insufficient level of shares by value or purchasing shares that take the foreign ownership limit for a register or individual holding over its maximum.
For a company: The liquidation or sale of parts of a firm. The disposal of an asset by sale. The selling off of an investment. In effect, divestment is the opposite of an acquisition or merger.
Payment by companies to the Investor representing the after tax earnings. Payments are based on an amount (usually cents) per share. Dividends may be imputed, not imputed, or partially imputed.
Value of last quarterly cash dividend or the number of shares an investor receives for each share owned in a stock dividend.
The annual dividend income per share received from a company divided by its current share price. Put simply - how much income are you getting out of the company for the capital you've got locked up in it?
The amount of dividend payable per share.
A scheme offered by many Issuers to their Investors which enables Investors to receive shares rather than cash for dividends declared by an Issuer. These shares are usually issued at a discount to the current market price and no brokerage is paid.
Dividends can be classified as either Interim or Final. A final dividend occurs at the end of a company's financial year and any in-between are generally classified as interim. There are cases when special dividends occur, these are irregular payments. For further information on dividends refer to the company announcements.
An amount owing to an entity at the end of an accounting period that is unlikely to be received. They would be recorded as an adjustment in the profit and loss account at the end of the period.
Income from a company over a specific period. This could be expressed as either gross or net.
Colloquially net is referred to as the "bottom line" because earnings are the entry at the bottom of the income statement after all expenses and costs are deducted.
An indicator of a company's financial performance calculated as revenue minus expenses excluding tax and interest. Also referred to as operating earnings.
Earnings per share are the measure of the earnings that are attributable to each equivalent ordinary share over a twelve-month period. It is obtained by dividing a company's net profit (less the preference dividends) by the total number of shares on issue.
Adjustments are also required if the company has made any share issues or repaid any capital during the year, and also if convertible securities or options exist.
Employee Share Plan relates to schemes established by Issuers that allow employees to take-up a shareholding in the Issuer as part of remuneration packages. Such shares are usually at discounted rates and may be offered to the employees in different forms such as being based on a loan or based on contributions made by the employer and employee.
Investors are offered an entitlement to purchase additional securities in a new issue on a specific date (record date).
An investment that involves a variable performance based rate of return. In sharemarket terms, equity is often used as a synonym for shares and represents part-ownership of a company. It is distinct from fixed interest securities such as bonds and debentures.
From a business perspective, equities represent the total interests of parties in the assets of that business entity. Lenders and creditors have a 'specific entity', and owners have 'residual' equity.
Capital raised by a company through issuing shares. An alternative to debt funding.
An investment that combines a life insurance policy with a mutual fund. The fund shares are used as collateral for a loan to pay the insurance premiums. Equity funding gives the investor the insurance protection benefits along with potential investment appreciation.
An equity such as the following:
An equity warrant is an option to buy the common stock of the debt issuer at a predetermined price on or before a predetermined expiry date.
The equivalent fully paid ordinary shares on issue takes into account the number of actual fully paid shares at period end as well as the number of potential fully paid shares.
Contributing, new, and deferred shares are treated as fully paid; options and convertible notes are treated as increasing the number of fully paid shares by the number of shares which will be created upon exercise of the options or conversion of the convertible notes.
The average number of equivalent fully paid ordinary shares. The weighted method gives shares that were in existence for the entire period a weight of 1 and other shares a weight of less than 1, as a proportion to the period they were in existence. The weighted average capital also reflects any dilution that occurred during the period.
Refers to units (shares) allocated to Investors that are subject to restrictions such as not being able to be traded for a specified period of time.
All assets owned by an individual at death, to be distributed according to the individual's will (or a court ruling if there is no will).
Options or warrants that are only exercisable on their expiry date.
See also American Exercise (Without something). For example, shares bought ex rights or ex dividend do not entitle a purchaser of shares to those benefits, which remain with the seller.
Latin for "without". Without something, for example, shares bought ex dividend do not entitle a purchaser of shares to those benefits. Those benefits remain with the seller.
Shares sold ex bonus entitle the seller to retain the bonus shares being issued. The ex bonus date occurs seven business days prior to and including the Record Date.
The Record Date is the date on which the company closes its books to determine which Investors are registered to receive the bonus shares.
The share price may fall on the ex bonus date to reflect the dilution effect as the company's assets are spread over a greater number of shares on issue.
The date on which shares change trading from "cum" to "ex" status. The date on which shares change from being quoted "cum" to "ex". It is usually the fourth business day prior to the record date. It is the first day that the share trades without the buyer qualifying for the dividend.
Ex means "without". Purchasing shares ex-dividend means that the seller is entitled to the current entitlement (for example, dividend, bonus, rights) that is currently attached to the shares being traded and not the buyer. For example, an Investor buying shares ex-dividend will not receive the dividend on those shares. It is the opposite to cum.
The "cut-off" date for receiving the next dividend. From this date, new shareholders will not participate in the next dividend. The price of a share will typically fall by the value of the dividend on this date, as it will no longer carry an entitlement to receive this latest dividend.
A share, which is trading such, that buyers do not receive the right to a new issue, usually resulting in a lower price.
Open ended listed investment fund, that combines some of the characteristics of shares and managed funds.
A director who is also employed full time by the company.
A person charged with winding up a deceased estate in accordance with a valid will. The executor is the person who administers the estate, but can also be the beneficiary to the will.
When an option or warrant holder takes up his or her option to buy or sell the underlying instrument (for example shares, commodities, an index etc) he/she is said to exercise the option or warrant.
The date at which the taker of an option has to settle the amount for buying the underlying security.
The price at which an option or warrant holder can buy or sell the underlying instrument (for example, shares, an index, commodities etc). Also known as the strike price.
The last date an option can be traded or exercised.
A meeting for Investors when a special issue needs approval quickly. For example, Investor approval may be required if a Property Trust wants to purchase a new property, or if a company would like to offer a special dividend.
Costs which affect a company's profit (or loss) which are not associated with normal activities and which are not expected to recur.
The theoretical price at which a futures contract should trade to be equivalent to the purchase price of the underlying instrument. In options trading the term is also used when referring to intrinsic value.
Dividend paid after the conclusion of the company's financial year when the profit for the year is known.
An institution which accepts funds from the public and reinvests in bank deposits, bonds and stocks etc. These include banks and insurance companies.
Normally, the financial year ended, as released in the company's annual report but can also apply to shorter and half-yearly financial periods.
The earliest Settlement Date for transactions in securities issued as a result of certain Corporate Actions.
Usually a reference to a fixed interest security - a debt security which offers a fixed rate of interest throughout the life of the investment. The price of a fixed interest security will fluctuate as market rates change, and also as the time left to maturity shortens.
A settlement which takes place on a fixed date related to the transaction date under the rules of the market. Presently, the fixed period settlement date is T+3.
This is the percentage of shares on issue that any one foreign Investor may hold.
These are restrictions specific to each Issuer. They outline restrictions regarding such things as the percentage of shares on issue that any one foreign Investor may hold or that all foreign Investors on the register may hold in total and define rules pertaining to treatment of breaches of these restrictions.
This is the percentage of shares on issue that all foreign Investors on the register may hold in total.
The forfeiture of shares may occur when an Investor is unwilling or unable to pay a call made by the Issuer. Investors with shares in a no liability company have the right to forfeit their shares by not paying a call. Forfeited shares may be auctioned or cancelled.
An arrangement in Australia that eliminates the double taxation of dividends. Dividends are dispersed with tax imputations attached to them. The shareholder is able to reduce the tax paid on the dividend by an amount equal to the tax imputation credits. Basically, taxation of dividends has been partially paid by the company issuing the dividend.
A franking credit is a tax credit to a person owning shares for the tax that has already been paid by the issuing company on their dividends. These are also known as franking credits.
Dividends paid on shares where the company has paid all the company tax paid on the income, which went to the dividend. The Investor will receive credit on the full amount of the dividend and will not be required to pay tax on the dividend received.
Ordinary shares where there is no uncalled liability (i.e. the full nominal value has been paid).
A City professional whose job is to decide how fund money is invested.
Fund managers work for investment trusts, unit trusts and pension funds, and have considerable influence in the financial markets because of the weight of money behind them. If they decide to move funds out of a sector, or out of a company in a sector, their decision can affect the price of shares in a way that the decisions of private investors rarely do (except for the smallest stocks).
Deciding which assets (shares, bonds, gilts, cash) the fund should allocate its money to is known as asset allocation.
Some fund managers run active funds which aim to beat the market index by picking the best performing shares. Others run passive funds, which aim to match the performance of an index by tracking it. The management fees charged by active funds are higher than for passive funds because the fund manager has to do more work.
GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). A company is assigned to a single GICS sub industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI.
Revenues are a significant factor in defining principal business activity; however, earnings analysis and market perception are also important criteria for classification.
A claim made by one party for an error to be fixed by the party responsible.
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
12 characters usually starting with 'X' followed by an 11 digit number. A HIN is a product of a broker sponsored holding and will be needed to be quoted in all dealings with your broker and registry.
Important note - your HIN identifies you as the owner of your securities and should be stored securely.
Units held in a particular Security by an Investor.
A company that owns shares in a "subsidiary company". A holding company may or may not run part of the business of a subsidiary company and is the "parent company" of a group of companies.
The subsidiary company is either a wholly owned subsidiary, where 100% of the shares are held by the holding company, or a partly owned subsidiary, where more than 50% but less than 100% of the shares are held by the holding company and is controlled by a board of directors.
Other companies in which significant holdings are held and where some influence is exerted by the holding company are called "subsidiary companies".
A Holder Number commences with an 'R' and is followed by a 9 digit character number
An intention by one company to take over another, where the target company's directors are vehemently opposed to it.
To avoid double taxation of dividends the government introduced imputation credits. Any company that does business in New Zealand pays tax on any profits they make. Listed companies pass this tax credit to shareholders by way of imputation credits. Dividends can be fully or partially imputed or carry no imputation at all.
The inability of a person or company to settle debts when they become payable.
Owning an instalment warrant is similar to having a share on lay-by only better. This is simply because instalment warrants enable investors to take advantage of any dividends or franking credits associated with a share without having to pay for the share in full. Because the instalment warrant costs a fraction of the price of the share and investors are the beneficial owner of the share for the life of the warrant, yields are greatly enhanced.
Instalment warrants differ from classic equity trading calls in that they usually are longer dated. The maturities of instalment warrants usually range from 12 to 18 months but can extend up to 10 years.
Their exercise style can be either American or European. In general, the aim of the purchaser of an investment warrant is to own the underlying share at the end of the warrant's term, or at least participate in the return on the underlying over the long-term.
The dividend declared before annual earnings are established. Some companies pay two dividends per year, the interim dividend and the final dividend. The interim dividend is usually the smaller of the two.
Share capital or Issued capital refers to portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or equivalent item of capital value. For example, a company can set aside share capital to exchange for computer servers instead of directly purchasing the servers from existing equity.
This is the number of authorised shares that are actually "issued" out to the shareholders.
A company or public sector entity which has shares, bonds or other security listed on a stock exchange.
An issuer sponsored holding is one that is sponsored by the issuer and not by a CHESS participant. Statements are sent to securityholders at the end of a month in which changes have occur to the holding.
Any account owned by two or more people.
The ownership of land by two or more persons collectively. On the death of one, the ownership passes to that person's survivor or survivors, as distinct from a tenancy in common. A joint tenant is one of the co-owners and is not a 'tenant' in the sense of 'lessee'.
A business arrangement between two or more parties (such as companies or countries) to achieve a mutual objective. All parties have partial control. It is a common way for companies to collaborate on a project(s) without engaging in a full-scale merger. A joint venture is similar to a partnership except that it is not necessarily a continuing one.
A type of agreement that establishes the responsibility for selling the securities in an underwriting. members of an underwriting group agree to buy a certain amount of the new issue and to share liability for the obligations of the other members of the group.
Lapse refers to the removal of shares from the register as a result of an Investor not fulfilling their obligation with respect to the shares. Examples include the exercise of options, where the Investor decides not to do the exercise. The shares left over after all option exercise processing is complete would lapse.
This is the price per security at the close of business the previous day.
Authority granted by a court to a person to wind up the estate of a deceased person who did not leave a valid will.
The right to hold property belonging to another person as security for the payment of some debt, or the performance of some obligation. For example, the right of the broker over shares until a buying client has paid for them.
The winding up of a company by a liquidator. The company's assets are converted into cash and paid to creditors and, if there is any surplus after that, to Investors. The process is akin to the administration of a deceased estate and to bankruptcy, however, a company may not be declared bankrupt under the Bankruptcy Act, but must be wound up in accordance with the Corporations Law.
Most liquidations are compulsory and relate to insolvent situations. However, liquidations can also be voluntary and represent a reorganisation of a group structure. Defunct companies with no assets or liabilities can be struck off without being formally liquidated.
A person appointed, usually by a court, to conduct the winding up of a company and the liquidation of its assets.
A company whose securities have been admitted to the stock exchange.
Approved securities for admission to the Official List and for trading on the Stock Exchange. Listed securities are usually more liquid than unlisted ones owing to the existence of the exchange. Also known as Listed Securities or Tradeable Securities.
The date that an Issuer lists on the stock exchange, where their shares are available to be bought and sold by the general public.
A class of security which is tradeable on the New Zealand Stock Exchange.
The act of lodging or process of being lodged.
The worth of a company as set by the stock market. It is calculated by multiplying the total number of shares on issue by the price per share.
Market participants are those companies that meet the NZX's requirements. They are more commonly referred to as Stockbroking organisations.
In the context of the New Zealand share market, Market Price represents the last reported price to buy or sell a security on the open market.. Alternatively, it is the highest price, which a buyer willing, but not compelled to buy would pay, and the lowest a seller, willing but not compelled to sell, would accept.
The current value of an item or security, as opposed to its book value.
Marketable Parcel, is the minimum amount of securities of an Issuer that can be held.
A notation placed upon a transfer indicating that there is a share certificate held by the Share Registry to support the transfer.
A number used in tracking bonds and marking certificates.
The redemption date; the date on which a fixed interest security is due to be repaid by its Issuer.
The joining of two or more identical shareholdings.
A form of corporate restructuring in which two (or more) companies combine all or part of their operations. Unlike takeovers, mergers are usually negotiated by the management of the companies concerned. A merger usually implies that the companies (or operations) are roughly equivalent in size.
The total assets of a company (current assets plus fixed assets) less its current liabilities.
Current assets minus current liabilities; also defined as working capital.
The gross profit of a company (total turnover of products sold less costs to purchase or manufacture) less all other expenses. When net profit figures are quoted, the author usually makes it clear whether the figure is before or after tax. In company accounts, the word 'net' is often dropped, so that you simply have 'Profit before tax' and Profit after tax'.
The net worth of a share, the theoretical value of the net assets attributable to each ordinary share on issue. It is calculated by dividing the estimated value of the company (total assets less liabilities) by the number of shares on issue. A company can have poor earnings per share rate, but still have solid asset backing.
Rights (entitlements) that have not been exercised (paid for) by the Investor.
A person appointed to vote at a meeting on behalf of another Investor.
A class of security that do not rank equally with ordinary shares.
A rights offer that may only be taken up or forfeited, and cannot be traded on the market.
Securities that cannot be bought or sold on the stock market.
A loan made to a company at a fixed rate of interest with the right to be either redeemed (i.e. repaid by the company) for cash or converted into ordinary shares at a predetermined date or within a certain period.
A noting of information against an Investor indicating some special circumstance. For example, a power of attorney, notification of death of a beneficiary, noting of incorporation for companies.
A unique code used by the NZX to identify listed companies.
The NZX Listing Rules govern the procedures and behaviour of all NZX listed companies and listed trusts.
Only public companies and public trusts are permitted to be listed on NZX. A public company (or trust) is one in which any member of the general public can acquire shares (or units) and there are no restrictions on the maximum number of shareholders (or unit holders).
In addition to prescribing pre-requisites for listing, the Listing Rules require that listed companies and trusts report announcements to NZX to keep the market informed of their activities and report profit results and other financial information within specific deadlines.
NZD=New Zealand Dollar.
The 3-letter international currency code is normally the 2-letter country code (NZ=New Zealand) followed by the first letter of the country's currency name (D=Dollar).
In the stock market, offer means that a seller is willing to sell a share at a given price.
In relation to a Takeover Bid, the offer period is the period for which offers under the bid remain open; however in relation to a Scheme, the offer period is from the date an announcement of intention to propose a Scheme is first received by the Exchange until the date on which the Scheme is effected.
Offeror can be:
An Off-market Buyback is when an Issuer wishes to buy back it's own shares from Investors, but will approach them personally (by mailing) as opposed to making an announcement to the market (On-market Buyback). An Issuer will decide to buy back shares in an attempt to increase share price and in some cases to reduce the number of small Investors on the Register.
When shares are bought back by the client they are cancelled and no longer exist, therefore reducing the overall number of shares on the company's register.
Relating to a transaction, such as moving securities from one holding to another without using a broker outside a formal market. Off-market transactions are conducted through negotiation rather than an auction system.
An On-market Buyback relates to the Issuer taking the Buyback offer to the market, as opposed to an Off-market Buyback, which only approaches the existing Investors.
Electronic transfer of stock from one holder to another through a Stock Broker. In this instance the Stock Broker locates a buyer or seller through the Stock Market according to their clients instructions.
A security, which gives its holder the right but not the obligation to acquire a share in a company at a specified price on a stipulated date or, sometimes, at any time up to a maximum date. An option which is not exercised by the latest possible exercise date lapses and becomes worthless.
Options are usually transferable and can be traded rather than used as a means to obtain the underlying security. An option to buy is a call option. An option to sell is put option. One to buy or sell is a double option.
The most common class of security, which carry voting rights and entitlement to dividends. Ordinary shares form the bulk of a company's capital. All companies listed on the stock exchange have to have ordinary shares. They may be fully paid or contributing.
If the company is wound up (liquidated), ordinary Investors generally rank behind preference Investors and secured creditors, including debenture holders. They also rank behind secured creditors for dividend payments.
This is a situation in which the value of applications received for a new share issue, exceed the amount available to be allocated. In share issues, oversubscriptions are not usually accepted and allotments may be scaled back and are made at the discretion of the company. In fixed interest issues it is common for a specific level of oversubscriptions to be accepted.
Nil Paid Rights that are transferred to paid rights when the Investor makes their payment for the nil paid rights. This allows the registry to identify Investors who have paid for their rights and those who have not, so that the short fall can be easily determined when the issue closes.
The portion of a company's shares already issued which are actually paid up. In other words, the subscribed capital less any amounts yet to be called (and also less any calls in arrears).
Nominal or face value that applies to fixed interest securities and which was formerly attributed also to each share. Prices in excess of a par value are said to be at a premium. Prices below a par value are said to be at a discount.
An existing security. For example, during a bonus issue, Investors who have holdings of the existing security (i.e.. the parent security) will be allocated bonus shares (depending upon the terms of the bonus issue).
Ranking equally. For example, in a new issue of shares which carry equal rights with existing shares they are said to rank pari passu.
A dividend paid to preference shareholders in addition to the normal preference dividends payable.
For example, Preference shares in XYZ Ltd receive a fixed 10c dividend. One year, the board announces a 12c dividend on all shares. The 2c premium over the preference dividend is known as the Participating Dividend.
A type of preferred stock that gives the holder the right to receive dividends equal to the normally specified rate that preferred dividends receive as well as an additional dividend based on some predetermined condition.
The additional dividend paid to preferred shareholders is commonly structured to be paid only if the amount of dividends that common shareholders receive exceeds a specified per-share amount.
These are shares, which have been issued with only a portion of the nominal value paid on application. The outstanding money is payable in one or more calls, at times set out at the time of issue, in the terms of the issue, specified by the Issuer. Similar to Contributing Shares.
Banking details (direct credit or third party) supplied to the registry by the Investor instructing payment of dividends.
After (Dividend) Payments have been carried out, there are some support functions which follow.
These functions include dealing with payment rejections where the bank has rejected a direct credit payment; replacing cheques which have gone astray in the mail and reconciling the amounts paid to Investors with the amounts drawn from the Issuer's bank account.
Where a company makes an allotment of shares, debentures, etc directly to new investors or large institutions rather than existing investors.
Concise statement of course of action at the corporate level.
Allocating groups of shares for different groups of Investors (for example, institutions, general public) in a Corporate Action.
The collection of investment holdings of a particular Investor usually with reference to its composition i.e. the mix of different classes of securities, such as bonds, property, shares and cash, or if in a single asset class, the mix of different sectors and stocks.
A legal document granting authority to another individual or company (the recipient) to act on behalf of the person granting the authority (donor).
Preference shares are limited to a fixed dividend but have priority over the ordinary shares in regard to a company's assets in the event of liquidation. They rank above ordinary shares, but below creditors and debenture holders, for claims on assets and dividends.
They can take various forms, for example, with or without cumulative dividend entitlements, redeemable or irredeemable, convertible or non-convertible.
It is commonly used to measure how attractive a share is to Investors, and to compare shares in one company with another. It shows the number of times the share price covers the company's earnings per share (EPS). The lower the ratio relative to the average of the sharemarket, the lower the (market's) profits growth expectations. It should be noted that dividing a historical earnings figure into a current market price could be misleading.
Calculated by: Market price of shares / Earnings per Share = P/E Ratio
The principal activities of a company as reported in the annual report.
Proportional(ly).
Offered on a pro rata basis within a specific class to all holders of those securities.
Authority granted by a court to a person (the executor) to wind up an estate of a deceased person.
Set of steps outlining the tasks involved in performing a function or activity in a process.
Series of activities that take place over time and have an identifiable purpose or result. Usually involves more than one department or team.
In common usage it is net profit after tax and minority interest. More specifically, it is revenue less any costs. There are usually a number of different measures of profit such as operating profit, earnings before tax, and pre-tax profit.
A type of collective investment (investors pool their money together and a professional manager operates the scheme) which invests in residential or commercial properties.
A property investment vehicle that in the ordinary course of business invests in commercial office buildings, retail shopping centres, industrial buildings and other investment property for the purpose of earning a rental income and long-term capital growth for investors.
A legal document issued when a company proposes to raise funds from the public. It invites applications or offers to subscribe for securities of an Issuer or trust. The content of a prospectus is subject to the regulations of the Stock Exchange and the provisions of the Securities Act and Companies Act.
A prospectus provides the background, financial status and management status of the company or fund. It must be made available to all interested Investors in advance of their investment, when an offer is made to the public.
A written authorisation given to a person (the donee) to act on behalf of an Investor (the donor), especially in regard to attending and voting at an Investors meeting. The proxy form may be personalised and bar-coded for subsequent processing of votes and attendance registration purposes.
Proxies generally are accepted up to 48 hours prior to the meeting.
Fund management agreements often delegate the authority to the fund manager to exercise proxy votes on behalf of the client.
Public companies are usually owned by a large number of Investors. They can issue shares and debentures by way of public issue and there are usually no limitations on the transfer of shares.
A contract which gives the Investor the right (without the obligation) to sell a fixed number of shares (usually 1000) at a fixed price on or before the expiry date.
A warrant which gives its holder the right to sell an underlying instrument (e.g. a share), and which would therefore normally be used by an investor who thought the price of the underlying asset was due to fall.
Often referred to as bid asked, or quote. The bid is the highest price anyone has indicated that he or she will pay for a security at a given time, and the asked is the lowest price anyone will accept at the same time. Also known as the bid offer.
One number or amount considered in relation or proportion to another. In oscar, the ratio is shown as Ratio Held: Ratio Given.
For example, if for every 2 shares held the Investor is entitled to purchase one additional share, the ratio would be 2:1.
A person appointed, either by a court or by a creditor to take charge of the affairs of a company (which has run into financial difficulty) until its debts are paid. The company is thus in receivership.
The condition of a company that has had a receiver appointed to administer it. The receiver's responsibility where he/she is appointed by a creditor, is to realise the belongings of the person or company and try to pay off the debts of the Securityholder.
Unlike liquidation, receivership does not necessarily lead to cessation of the company's business. The receiver may allow for the company to continue trading.
A payment list (mostly for dividend payments) is checked to see which cheques have or have not been presented to the Issuer's bank for payment. This also involves the replacement of lost of stale cheques and the preparation of unclaimed money returns.
Reconciliation is also performed at the time of an issue of shares to ensure that application money for the number of shares allotted has been received and banked, and that the computer has recorded the correct total of shares allotted.
A change to the existing capital structure of a company. An Issuer may adjust its capital by reconstructing its shares into units of greater or lesser par value. This includes share splits, consolidations, capital reductions (partial repayments), schemes of arrangement and name changes.
The date on which the Issuer closes its register for the determination of eligible Investors for the current dividend or interest payment or any other Corporate Action. Shares purchased after the record date do not participate in the dividend or interest payment. It is also known as a books close date.
Paying off or cancelling a debt. For example, government bonds are redeemable at face value upon maturity i.e. the government pays you, the lender, your money and redeems its debt.
A record, which holds the details of shares, issued to Investors for a specific Issuer. There is usually only one New Zealand register for each Issuer. Some Issuers also have overseas registers when they are listed in foreign countries such as Australia.
Only a legal entity is permitted to be registered as a holder of securities. A legal entity is an individual person, a joint holding of up to three holders, a body incorporated under the New Zealand Companies Law or overseas equivalent.
The organisation that maintains a company's share register. For example, Link Market Services Limited.
The place where the maintenance of the register takes place. Most frequently this is the office of a professional share registrar.
Company related through common ownership.
Change from one register location to another, for example New Zealand to Australia. This is sometimes called a shunt.
An offer issued by a corporation to shareholders to purchase more shares of the corporation's stock (usually at a discount). Renounceable rights have a value and can be traded.
Renunciation occurs when an existing Investor sells entitlement to shares in a new issue to another person. Renunciation is the act of renouncing entitlements from a share issue to a purchaser willing to pay for the transfer of rights.
An amount of tax-paid profits, or other surpluses separately designated in Investors' funds as being set aside for a particular or general purpose, or arising from a particular source. The profit or surplus set aside may be prohibited by statute from being distributed as a dividend, or the directors may intend that the amount is not available for distribution at least in the near future.
The term also applies to the excess of a provision over that reasonably necessary for the purpose and to surpluses arising on the upwards revaluation of non-current assets. Sometimes all accumulated profits and surpluses are generally described as reserves.
That part of the capital of a business that has not yet been called up. It is thus a reserve, which can be drawn on in case of need.
An official document representing an action on the part of the board of directors of a corporation.
An individual who purchases small amounts of securities for him/herself, as opposed to an institutional investor. Also called individual investor or small investor.
The return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. It is calculated as the ratio of the amount gained (taken as positive), or lost (taken as negative), relative to the basis.
What a company makes in monetary terms from its business for goods and services supplied by it during a financial year. It is also referred to as "revenue from operations", "turnover", "operating revenue" or loosely known as "sales".
The entitlement given to existing Investors to subscribe for new shares in the Issuer at a specific price and by a specific date. Rights are issued pro rata to Investors and may be renounceable (able to be traded) or non-renounceable (non-tradeable).
An offer of additional shares to existing Investors at a pre-determined ratio to registered holders as at the record date. Normally Investors do not pay brokerage or stamp duty. The decision to take up the entitlement is optional.
During repayment of funds for securities that have a finite life (such as debentures and convertible notes) Issuers may offer holders the option to roll over the maturing security. The security (debenture or loan) is replaced by a further security (debenture or loan) by negotiation with the party to whom the money is owed.
Scaleback is the Corporate Action used to scale down the number of shares or rights an Investor may be entitled to. This occurs when an Issuer has oversubscribed in an issue of shares, and may need to scale down the number of shares issued per Investor. This scaleback is at the discretion of the Issuer.
Schemes of arrangements are legal arrangements between companies and their Investors or creditors to vary the rights of the parties, subject to the consent of a court. Some schemes are used to effect compromises between debtors and creditors. Others are used to effect capital repayments or other reconstructions. Schemes affecting several companies can be used to effect mergers.
An independent observer that monitors the proceedings during an annual general meeting to ensure that they have complied with legal requirements and company policy.
The trading of shares amongst investors which does not involve the company itself. When people talk about trading on the stock market, they are generally referring to the secondary market, which involves brokers, market makers and an exchange providing a technical platform for trades to take place. The companies and their shares are the subject of the trading, but they are not directly involved as participants.
The primary market refers to the situation in which a company sells newly issued shares to investors, possibly in an IPO, or places them with institutions.
The paper right to a (generally tradeable) asset. The term is frequently used as a loose label to refer to all shares, debentures, notes, bills, government and semi-government bonds etc, which are traded on the stock exchange.
An asset pledged to ensure the repayment of a financial obligation (e.g. loan), and forfeited in the event of default on that obligation.
A person (which can be an individual, partnership or company) who buys a portion of a public or private company's capital. By doing so that person becomes a shareholder in that company's assets and receives a share of the company's profit in the form of dividends.
An agreement between Link and the Issuer regarding the services available in the Standard Registry Agreement and the performance measurements agreed upon for selected services.
The completion of a transaction, whereupon securities and, where appropriate, corresponding funds are transferred.
The date on which the final settlement of securities transaction takes place and the final payment is made. It is also referred to as T+3 as the settlements must occur on (or prior to) the third business day after the date of the transaction.
i) A type of agreement that establishes the responsibility for selling the securities in an underwriting. Members of the underwriting group agree to buy a certain amount of the new issue severally but do not agree to joint liability for shares unsold by other members of the group.
ii) More generally, when members of a group agree to certain obligations individually, but do not share responsibility for the obligations of other members of the group.
The physical document recording ownership of shares. It contains an identifying number and states that the person named is the registered holder of securities. Certificates are no longer in general use and are also known as Scrip.
Share Purchase Plans may be offered to Investors by some Issuers. The SPP allows Investors to top-up their holdings according to specified rules. These shares are usually offered at a market-related price but free of stamp duty and brokerage.
These arrangements sometimes supplement conventional dividend reinvestment plans and sometimes take their place. These plans directly help Investors who want to top up their holding and also increases the popularity of the company in the marketplace thus probably leading to a slightly higher share price.
A share split is the subdivision of shares into a larger number of shares each with a correspondingly lower market value. The total value of any Investor's holdings is not affected by the split. Sometimes splits are made to increase the marketability of a security.
The ownership of part of a company. It is a contract between the issuing company and the owner of the share, which gives the latter an interest in the management of the corporation, the right to participate in profits and, if the company is dissolved, a claim upon assets remaining when all debts have been paid. The majority of shares issued are either ordinary or preference shares. Company's can also issue deferred shares.
The difference between the expected amount and the amount received. For example, a borrower could issue securities to the market hoping to raise $1 million, but sell enough to raise only $900,000, which leaves a shortfall of $100,000.
The method of moving shares from one register location to another e.g. NZ to AUS. Also known as Removal.
A dividend paid in addition to the usual interim or final dividend. This dividend is a one off distribution and is paid at the discretion of the Issuer.
A statement sent by the Issuer outlining an investors transactions.
It is referred to splitting of votes when the holding is registered under joint partners.
12 characters usually starting with 'I' or 'C' followed by an 11 digit number. A SRN is a product of an issuer sponsored holding and will be needed to be quoted in all dealings with the registry.
Important note - your SRN identifies you as the owner of your securities and should be stored securely.
A global organisation that provides services including independent analysis and information on stocks, bonds, mutual funds and many other complex investment vehicles, investment data, rating services, indices, benchmark services, valuation analysis and opinions.
A legally binding signed declaration made by a person to say that the statement they are making is true and correct. It is normally witnessed by a Justice of the Peace (JP).
The term stock, or stocks and shares have now become synonymous with securities.
A general term used to refer to the organised trading of securities through various exchanges and through the over-the-counter market. A "stock exchange" is a specific form of a stock market, a physical location where stocks and bonds are bought and sold, such as the NZX, ASX,New York Stock Exchange, NASDAQ or NSX.
A notification to a bank that a cheque has been lost or stolen and is not to be honoured.
Same as reserved. Once an acceptance has been received for a block of shares then those shares are flagged to be unavailable for trading.
A component of the principal register whereby securities held in different modes are segregated.
One who agrees to purchase securities.
A person / company which owns over five percent of a company's issued capital (and as a result, voting rights). Substantial Shareholders must advise the NZX of any purchase or sale that changes their holding.
A form of notification which must be completed by an Investor once he/she exceeds a certain proportion of the shareholdings in a company.
Also known as a derivative.
A stock exchange rule requiring both broker/broker and broker/client settlements for most stock exchange transactions to take place on the third business day after the date of the transaction.
There are penalties for both brokers and clients who miss the deadlines. This rule enables the bulk "netting" of transactions between brokers each day, thus reducing the paperwork which previously applied when individual buying and selling orders needed to be matched.
Takeovers are when one company (Offeror) makes a bid for another company (Target) through the purchase of its shares.
A Takeover can be for all or part of a company. They can offer Investors a choice of cash or securities or a combination of both. Prior to the takeover reaching the unconditional stage, the offeror can either change the offer or abandon the takeover. The term takeover is normally used to imply that the acquisition is made on the initiative of the acquirer and often without the full agreement of the acquired company, as distinct from a merger.
Takeover bids may be of two sorts; an off market, or an on market bid.
Both on market and off market bids can take place simultaneously.
Takeovers can move through four phases, entitlement, acceptance, unconditional and compulsory. Reaching the compulsory stage will be dependent upon conditions set by the offeror.
A unique number issued by the Australian Taxation Office (ATO) to individuals and organisations to increase the efficiency in administering tax and other Commonwealth Government systems such as Income Support payments.
There are a number of categories of Investor who are exempt from quoting a TFN in relation to their investments.
These categories include:
To claim an exemption, as an organisation not required to lodge tax returns or as a pensioner, the exemption status should be advised on a Tax File Number Quotation\Exemption form.
The theoretical value which a Corporate Action (such as a rights issue or a bonus issue) would have on the market, if the market were perfect and if there were no other changes in market conditions apart from a corporate action.
The tolerance amount is a range of amounts that is under or over the correct issue price for a corporate action that an Investor has mistakenly paid where they will not be refunded the money. The Issuer defines the tolerance amount.
If an Investor has overpaid, and the amount falls within the tolerance amount, the Issuer may keep the money (to absorb the cost of Investors who have underpaid) or give the money to charity. If an Investor has underpaid, and the amount falls within the tolerance amount, the Issuer will allot the number of securities that the Investor has requested (using money from Investors who have overpaid to make up the shortfall).
If the amount paid does not fall within the tolerance amount, when the Investor has overpaid, the Issuer will refund the money or request the shortfall of the money, or if they have underpaid, the Issuer will scale back the allotted shares closest to the amount that the Investor has paid.
Securities transaction between two parties. A Trade may be one of:
Securities that can be bought or sold on the stock market
A security which can be traded (bought or sold) in the market.
A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be cancelled and options may be exercised.
An additional block of stock, supplementary to an existing issue.
A record of movement (selling or buying) in an Investor's holding.
A legal document used to transfer the holding of one Investor to another. It is no longer required for on market transactions.
The process by which one security turns into another. This usually happens in cases where an Issuer changes its name or when securities change their nature (e.g. becomes fully ranking instead of partially ranking).
The transfer of shares from a deceased Investor to the beneficiary/beneficiaries in accordance with estate documentation.
An account separate and physically segregated from an advisor, broker or other professional's own funds, in which clients funds are deposited in accordance with the law.
A payment of a trust's profit to unit holders. Under most trust deeds, trusts are not permitted to retain profits.
A person or company that has legal responsibility for financial aspects (receipts, disbursement, and investment) of funds.
A trust company which acts in a capacity of trust as a fiduciary and to whom assets have been conveyed for the benefit of another party. The Trustee in this case oversees the behaviour of the manager in relation to the operation of a unit trust.
That part of the company's issued capital which has not been paid for by the Investors.
During a takeover bid, Investors in the target company must choose to either:
If a predetermined percentage of Investors accept the offer, then the takeover will proceed as the offeror will have a controlling interest in the target company. The unconditional level is this predetermined percentage (%) of acceptances required for the takeover bid to proceed.
If the takeover has reached the unconditional level, the remaining Investors (who have not responded to the offer) no longer have any choice over whether they will accept or reject the takeover offer. The takeover has now become unconditional. They can still keep the shares of the target company (unless compulsory acquisition occurs), or sell them on the market. The Offeror must fulfil their obligation to settle the takeover offer with all Investors who have accepted the bid by paying them cash, shares, or a combination of both.
The unconditional phase occurs when the takeover has reached the unconditional level.
The shares subject to purchase on the exercise of an option.
An organisation that, for a fee, guarantees to the Issuer a minimum level of subscriptions to a share or debt issue. f public subscriptions fail to reach this minimum level then the underwriter takes up the shortfall and ensures that the funds will be available at a specific time. Underwriters often have sub-underwriters who share the risk.
A bank or other financial institution's guarantee to a company that it will buy a certain number of shares in a company's new issue or rights issue, should the issue not be fully subscribed by other investors.
From the company's point of view, having its new issue underwritten is a form of insurance. It means that if it has priced an issue too high and the market shuns it, the company can still be sure that it will get money from the new issue.
Of course, security comes at a price. Underwriters charge a fee for the back-up they provide. If the new issue is very popular, it will pocket that fee and make a handsome profit. Occasionally, they get badly burned. New issues underwritten immediately before the 1987 stock market crash lost a lot of money.
Sometimes companies do a rights issue at a deep discount to reduce the underwriting fees.
A dividend paid to a shareholder that has not been subjected to tax.
An organisation which invests funds subscribed by Investors in securities, and in return issues units which it will repurchase. These units, which represent equal shares in the trust's investment portfolio, produce income and fluctuate in value according to the assets the unit holds. The trustees which hold the securities are usually banks or insurance companies and are distinct from the management company.
The subscriber to a unit trust does not receive any of the profits of the company managing the trust.
The trust managers derive income from a regular service charge. Unit trusts are directed particularly at the Investor with small sums at his/her disposal. Units are easily purchased and resold, and risks are widely spread. The Investor benefits from expert management. Trusts may specialise in different areas such as blue chip securities, small companies, or foreign companies.
A Company and/or shares that are not available for purchase or sale through the sharemarket.
A number of shares less than a marketable parcel.
A loan made by the note holder to an Issuer for a fixed period of time at a fixed rate of interest. The loan is not secured by the Issuer against any of its assets. The notes offer a higher rate of return than a debenture of the same maturity but they do not carry the security of the debenture.
The valuation price available from the ASX's data service signal E is calculated as follows:
The value of your securities is your balance multiplied by the price at last close.
Similar to a proxy form, however, holder can only nominate the Nominee as their proxy.
A voting instruction form is used when the holder directs a trustee/nominee on how to vote for their shares.
A certificate that gives the Investor the option to purchase shares at a fixed price before a specified date or in some cases indefinitely (endowment warrants). Warrants are sometimes attached to other securities as an added purchase incentive and may be traded separately after issue.
All warrants quoted on NZX have ticker code: The code used for trading.
The issuer of a warrant.
Each warrant series has a separate warrant code. A warrant series is where warrants with the same terms of issue and underlying asset have the same warrant issuer, exercise price, expiry date (see expiry, expiry date, expiration) and settlement procedure.
A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.
When an Issuer is setting a price on a share, they will take the average share price for a pre-determined number of days.
A document which sets out how an individual wants his or her wealth and property to be distributed after death.
The ceasing of a company's business by a liquidator.
Australia has double taxation agreements with many other countries. This usually results in income that is earned by the residents of one country from sources in a different country being taxed only once, but at the higher of the two possible rates.
Dividend and interest payments that are made by Australian companies to overseas Investors are subject to a special deduction known as 'Withholding Tax'. This eliminates the need for overseas Investors to lodge Australian tax returns. There are two types of withholding tax;
Withholding tax is deducted at the source by the Share Registry from the payments.
An investments returned earnings, generally expressed as a percentage. This takes into account its current market price and annual income.
Brokers provide a variety of services to their clients. Primarily, they facilitate securities trading - that is, the buying and selling of shares. If you want to buy or sell shares you need to do so via your broker or you need to find a broker to do this for you.
To find a broker, visit the NZX website, or check the Yellow Pages.
Link understands that privacy is important to you. Link is subject to the requirements of the Privacy Act, which governs, among other things, how organisations handle personal information. Our Privacy Policy is available for you to read in this help section.
If you think that your Securities Transaction Statement, Payment advice, or FIN advice has been stolen, you should notify Link immediately by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
We will assist you with an urgent replacement of your documents and we will make arrangements with you to have a new FIN issued.
For information about the company in which you invest you can;
Companies post their reports on their website. Past reports are also available on the company's website. Investors will receive a section 209 notice from the company they have invested in each year. Investors can elect to have a hardcopy of the annual report mailed to them each year by completing the section 209.
Some issuers may specifically preclude holdings being registered in a minor's name. Where not specifically precluded, minors are able to hold securities in their name, however this may present several impracticalities and legal constraints. The following problems could occur;
Following are some guidelines to assist with transferring securities registered in the name of a minor:
If you have any questions regarding the above please contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Common Shareholder Number: All investors who purchase securities listed on the NZX through a broker, will be allocated a CSN, which will be your common holder number across all NZX listed securities (all New Zealand registrars will hold that single number as your holder number).
Holder Number or Shareholder Number: The Registrar for the issuer in which you hold your securities, allocates this number to you. You will have a different number given to you from each registry, unless you apply for a CSN across all registries through a Broker. A holder number / share holder number is allocated to you when you become the owner of securities by any other means than buying them through a broker.
Either your CSN or a holder number will appear on your Securities Transaction Statements, Payment Advices and other related documents you may receive.
Important note - your Common Shareholder Number (CSN), Holder Number and Faster Identification Number (FIN) identify you as the owner of your securities and should be stored securely.
This is a four-digit number, similar to your PIN on your bankcard. You will need to quote your FIN number to your Broker when you trade (buy or sell) your securities. It should be stored in a secure place and not be divulged for any other purpose than trading your shares.
If you are unable to locate your FIN please contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Please be aware that for security purposes, FIN numbers will not be disclosed over the phone by Link Market Services staff. Instead, a replacement FIN advice will be despatched to your mailing address as held on the register. You can download and print a Lost / Forgotten FIN Form from this website and mail the completed form to Link Market Services Limited, PO Box 91976, Auckland 1142.
To find out the value of your securities you multiply the number of securities (holding balance) by the current market price for the security.
Current market prices are available on the NZX website.
A certified copy is a copy of an original document that has been certified as a true and correct copy by a person who is authorised to witness a statutory declaration. Persons who are authorised to witness statutory declarations under the Oaths and Declarations Act 1957, are;
If you have a complaint regarding Link Market Services, you may contact our Complaints Manager.
Our contact details are:
Phone (Investor contact line) 09 375 5998
Email Lmsenquiries@linkmarketservices.com
In writing
Complaints Manager
Link Market Services,
P O Box 91976Auckland 1142
New Zealand
By facsimile 09 375 5990
Link Market Services can only place a stop trade on a holding if specifically instructed under legal authority (eg: under court order), or if documents relating to your holding have been lost or stolen. If your FIN advice has been stolen, please contact the registry immediately and they will make arrangements for a new one to be issued to you.
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
For information regarding the terms and conditions of your employee share plan, please contact your share plan administrator at your place of employment.
For information regarding the terms and conditions of your employee share plan, please contact your share plan administrator at your place of employment.
To sell your securities, you will need to contact your Broker or Financial Adviser. If you do not have a Broker, you can obtain details via the NZX website (click on market participants for a list of the members of NZX member firms).
Please ensure you have your CSN or Holder Number, and your FIN (Identification Number) when you place your order to sell your securities.
To amalgamate your holdings all holdings must have identical names, addresses, IRD numbers and /or payment instructions. If your payment instructions are different please advise correct bank account instructions for the amalgamated holding. Simply download, print and complete the Merge Multiple Holdings Form, quoting your Common Shareholder Number (CSN) or Holder Number. Please nominate the Holder Number you wish to retain.
The names, addresses, IRD numbers and / or banking instructions of all holdings must be identical before we can amalgamate your holdings. You can compare and amend most of these details via the Investor Service Centre.
If you wish to transfer or sell your securities to another party under a private arrangement, you will need to print and complete an Off Market Transfer Form.
Easy to follow instructions are attached to the Transfer form. Please ensure that all parties involved sign the transfer form and that the signatures are appropriately witnessed. You will be required to complete a transfer form for each security you wish to transfer and for each person that the securities are being transferred to.
You will need your Common Shareholder Number (CSN)/Holder Number to be stated on the transfer form. Transfers must be validly completed and signed, and must meet the issuer's conditions of transfer.
If you are signing under a power of attorney, a certified copy of the original power of attorney must be lodged with Link Market Services for noting (if not already noted).
Information such as address details, payment instructions and annual report elections can be confirmed online by logging into the Link Investor Centre. Changes requested by mail may take up to three working days to be processed. If your change request has not been affected after this period, please contact Link Market Services.
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Link takes the security of your holdings very seriously, therefore there are restrictions on the extent of changes that may be conducted online. Availability is based on several factors, including industry regulations, transaction type and shareholding value. If the update you require is not available online, please complete and sign the relevant form and forward it to us for processing of your instruction.
Holder's can record or change their IRD number by logging into the Link Investor Centre or completing the IRD Number and Tax Election Notification Form.
Or you can advise Link Market Services of the details by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
If you provide Link Market Services with your with holding tax rate this rate will apply to all your interest payments. Dividend payments will be taxed at the company tax rate not your personal tax rate.
You can update your payments online logging into the Investor Centre or completing the IRD Number and Tax Election Notification Form.
Alternatively you can contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
You can update your address details for Individual, Joint and Company holdings by logging in the Link Investor Centre and selecting 'Update Address' under the 'Communications' section. This change can be applied to one or multiple holdings.
If you are using the 'Single Holding' login then you will only be able to update your address details if you have an 'Individual' holding.
Alternatively you can send your instructions by mail or fax to:
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
For security reasons a holding relating to a deceased estate will not be able to be updated online and you will need to download a Change of Address Form from the 'Forms' section. NZ Post supplies free of charge, a change of address card. As New Zealand law does not yet recognise electronic signatures, we are therefore unable to accept change of address details via email.
All change of address details are to be signed by all shareholders. If you are signing under a power of attorney, a certified copy of the original power of attorney must be lodged with Link Market Services for noting (if not already noted).
How you change your name on your holding will depend upon your individual circumstances.
You can change your name by completing the Name Correction Form. Please note that we are unable to accept requests by facsimile, email or phone.
The form should be completed and signed correctly and accompanied by relevant supporting documentation. If you are signing under a power of attorney, a certified copy of the original power of attorney must be lodged with Link Market Services for noting (if not already noted). Supporting documentation requirements differ, depending on the reason for the change of name;
In most cases this simply requires completion of a Name Correction Form. Alternatively please contact Link by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
You can update your bank account details for Individual, Joint and Company holdings by logging into the Link Investor Centre and selecting 'Update Payment Instructions' under the 'Payments & Tax' section. This change can be applied to one or multiple holdings. For security reasons if a holding relates to a deceased estate then you will not be able to update this online and you will need to complete the Request for Direct Credit of Payments Form from the 'Forms' section.
To enquire about any outstanding payments owed please contact Link by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Please contact Link Market Services to request a cancellation and documentation to facilitate the reissue of your payment by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Replacement payments will be direct credited directly into your New Zealand Bank account.
Not only is payment by direct credit much more secure, it is faster - payments are credited to your account as cleared funds, allowing you to access them on payment date.
Banks will reject direct credits if your bank account details are incorrect or your bank account has been closed. Link notifies all investors in writing of payments that have been rejected by the bank and a updated bank account will be requested to enable payment. All future payments will be credited to the updated bank account provided.
If your cheque has been lost or stolen, please notify Link Market Services immediately by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
to request a cancellation and reissue of your payment (charges may apply). You will be sent a cheque cancellation and indemnity form, to complete and return. You will be required to supply your current bank account details.
Future payments (and in some cases, the outstanding payment) may be direct credited directly into your New Zealand bank account.
Not only is payment by direct credit much more secure, it's faster - payments are credited to your account as cleared funds, allowing you to access them on payment date.
Please contact Link Market Services to request a cancellation and reissue of your payment.
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Please mail your stale cheque with a cover letter to Link Market Services to request a cancellation and reissue of your payment or contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Your dividend history and advices are available online at the Link Investor Centre and details the net amount paid to you.
All investors are mailed a payment advice at the time the payment was made.
Alternatively please contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Some issuers allow dividends/interest/distributions to be paid into third-party accounts - that is, a bank account in a name that is different to that of the registered holder.
In all cases, the dividends/interest/distributions of joint holdings can be credited into the account of any one of the joint holders.
For information regarding a particular issuer's payment policies, please email Link Market services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Payments remain in the Issuers dividend account until such time that they are paid out to the security holder. Any unclaimed monies will be treated according to the unclaimed money legislation after 7 years. If you suspect that you have not received a payment, or to obtain details of unpresented cheques or rejected direct credits for your security holding please contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Link will send you an indemnity form to be completed and returned before we can reissue you with your outstanding payments (charges will apply).
Future payments may be banked directly into your New Zealand Bank account. Not only is payment by direct credit much more secure, it's faster - payments are credited to your account as cleared funds, allowing you to access them on payment date.
Dividend Re-investment Plan (DRP) details are available on a company's website.
Alternatively contact Link Market Services to find out if the company has a DRP and to obtain a copy of the Plan details by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Copies of the Dividend Reinvestment Plan (DRP) Rules are frequently available on the issuer's website.
Alternatively, please contact Link by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
For information regarding the tax implications of security ownership, please consult your tax adviser or accountant. Alternatively, visit www.ird.govt.nz
A supplementary dividend is a credit passed on by the payer of an imputed dividend to non-resident investors to offset the effects of double taxation (where the non-resident is subject to both company income tax and NRWT).
Imputation is a mechanism that a company can use to pass on credits for tax it has paid on its profits, to its shareholders when it pays them dividends. These imputation credits offset the amount of tax that the resident shareholders would otherwise be liable to pay on those dividends, so they don't have to pay "double tax".
For information regarding how to complete your tax return in relation to payments you received, please contact your tax advisor or the IRD.
Payments received must be declared in the same tax year in which they are paid. The New Zealand tax year is 1 April through to 31 March.
You will find all the payment information required to complete your annual tax return (e.g. resident withholding tax, imputed tax credits, net payment, etc.) on your payment advices which was mailed to you at the time the payment was made.
If you have invested in a trust and have received distributions, your annual tax statement provides all the information required to complete your annual tax return.
If you are unable to locate your advices, please contact Link by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
to order replacement copies (charges apply). Payment history can be viewed by accessing the Link Investor Centre.
Link Market Services can provide you with an annual tax summary. Charges will apply. To request your tax summary please contact Link by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
When a holder dies, their securities they hold form part of the assets of their estate. The administration of an estate can be complex, time consuming and sometimes distressing. If you are the administrator for an estate, Link Market Services Limited has created a comprehensive guide of Estate Administration Services to assist you when dealing with an estate.
Alternatively, please contact Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
A grant of probate is obtained from the court when the value of an estate exceeds a certain amount. (See Administration Amendment Act 1998). Probate is a court order saying that the will is valid and that the executor has the right to administer the estate.
Probate is required to be resealed in NZ where the total value of the securities of the estate exceeds a specified amount. (See Administration Amendment Act 1998) Forward to the registry the resealed Probate along with completed Estate Transmission Form for each security held by the Estate.
If the deceased has not left a will, one of the beneficiaries should apply for Letters of Administration. The estate is then administered under the law relating to intestacy (i.e. dying without a will or dying intestate).
Not necessarily, however, executors often enlist the help of a solicitor to administer the estate. Sometimes – e.g. when an estate is intestate – an experienced professional can provide valuable assistance.
No, do not send the original documents. All legal documents provided should be certified copies only. A certified copy is a photocopy that has been certified as a true and correct copy of the original, signed by a person authorised to witness a statutory declaration (such as a Justice of the Peace or Solicitor of the High Court).
The necessary forms must be completed and duly signed by the authorised signatories of the Estate. For example the Executor(s) or Administrator(s).
Please read the requirements relating to what documentation are required in the Deceased Estate Administration Guide.
It covers the following scenarios:
Forms can be downloaded from this website. Alternatively, you can obtain the necessary forms by contacting Link Market Services by
Email: Lmsenquiries@linkmarketservices.com or
Phone: 09 375 5998
Fax: 09 375 5990
Mail: PO Box 91976, Auckland 1142
Please note that Transmission/Estate Transfer forms must be completed for each different issuer and each different class within that issuer. The division of the holding between multiple beneficiaries will also require a separate form for each beneficiary.
Please ensure that the registry has noted all the required documentation for the estate before attempting to sell the Estates Securities. To sell the shares held in the name of the deceased, you will need to contact your sharebroker or financial adviser. If you do not have a broker, you can obtain details of brokers in your area, via the NZX website visit www.nzx.com and click on "market participants" for a list of the members of NZX member firms.
Please ensure you have the CSN (Common Shareholder Number) or Holder Number, and FIN Transfer of holding details and instructions from Estates holding to Beneficiary. When a holding is transmitted into the name(s) of the beneficiary or beneficiaries, a new holding is created.
Instructions previously provided (by the deceased and/or the other holders), such as IRD number or exemption, dividend and/or reinvestment plan details, annual report elections, etc. are not carried over to the new holding. Therefore, when lodging the request for transmission into the name(s) of the beneficiary or beneficiaries, new instructions are required to be submitted.
Estate tax considerations