An index based on 40 of the largest and most liquid stocks traded on the Paris Stock Exchange.
See index.
Glossário
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Compliance
The process of ensuring that any other person or entity operating within the financial services industry complies at all times with the regulations currently in force. Many of these regulations are designed to protect the public from misleading claims about returns they could receive from investments, while others outlaw insider trading. Especially in the UK, regulation of the financial services industry has developed beyond recognition in recent years.
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Concert parties
Any persons or parties acting in concert (see definition of acting in concert).
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Conditions precedent
Certain conditions that a venture capitalist may insist are satisfied before a deal is completed.
See also comfort factor.
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Confidentiality and proprietary rights agreement (or non-disclosure agreement)
An agreement in which an employee, customer or vendor agrees not to disclose confidential information to any third party or to use it in any context other than that of company business. If the agreement is between a company and an employee, the employee typically grants to the company the rights to all inventions he develops while employed by the company and represents that he is not bound by any restrictive obligations to a former employer.
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Conflict of interest
In a public to private transaction, a conflict of interestinvariably arises if the directors of the target company are(or will be) directors of the offeror, in which case theirsupport for the offer gives rise to a potential conflict withthe interests of the shareholders of the target company.
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Connected persons
Companies related by ownership or control of each other or common ownership or control by a third person or company, and individuals connected by family relationships or, in some instances, by existing business relationships (such as individuals who are partners).
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Contributed capital
Contributed capital represents the portion of capital that was initially raised (committed by investors) which has been drawn down in a private equity fund.
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Conversion
The act of exchanging one form of security or common stock equivalent for another equivalent security of the same company (eg preferred stock for common stock, debt securities for equity).See common stock equivalent, preferred common stock, debt securities.
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Conversion ratio
The number of underlying securities that can be acquired on exchange of a convertible security.
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Convertible debt
A debt obligation of a company which is convertible into stock under certain circumstances.
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Convertible preferred stock
Preferred stock convertible into common stock (ordinary shares).
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Convertible security
A financial security (usually preferred stock or bonds) that is exchangeable for another type of security (usually ordinary shares) at a fixed price. The convertible feature is designed to enhance marketability of preferred stock as an additional incentive to investors.
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Convertible/equity related loan
Loan convertible into equity as per pre-agreed terms.
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Corporate Governance - EVCA Corporate Governance Guidelines
Guidelines set out by EVCA concerning good practice in the management and governance of privately held companies in the private equity and venture capital industry. Their aim is to define principles of good governance for private equity and venture capital investing and regarding the conduct as shareholders, board members and management.
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Corporate venturing
There is no single definition of corporate venturing that seems to satisfy all parties, so we distinguish indirect corporate venturing – in which a corporate invests directly in a fund managed by an independent venture capitalist – from a direct corporate venturing program, in which a corporate invests directly by buying a minority stake in a smaller, unquoted company.
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Covenant lite loan
A loan with lighter or no covenants, providing the borrower more operational flexibility while limiting the lenders protection against strong changes in his/her financial performance.
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Covenants
An agreement by a company to perform or to abstain from certain activities during a certain time period. Covenants usually remain in force for the full duration of the time a private equity investor holds a stated amount of securities and may terminate on the occurrence of a certain event such as a public offering. Affirmative covenants define acts which a company must perform and may include payment of taxes, insurance, maintenance of corporate existence, etc. Negative covenants define acts which the company must not perform and can include the prohibition of mergers, sale or purchase of assets, issuing of securities, etc.
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Credit spread
The difference in yield between two securities that are identical (in maturity and duration) except for their credit quality. Often the credit spread is used to compare corporate bonds with government bonds.
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Cumulative dividend
A dividend which accumulates if not paid in the period when due and must be paid in full before other dividends are paid on the company’s ordinary shares.
See Arrearage.
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Cumulative preferred stock
A form of preference shares which provide that, if one or more dividends is omitted, those dividends accumulate and must be paid in full before other dividends may be paid on the company’s ordinary shares.
See Arrearage.