Our Glossary
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| s Wohnbaubank bonds | s Wohnbaubank bonds are convertible residential bonds. The capital raised through s Wohnbaubank bonds is exclusively used for the construction of residential space in Austria. For private investors subject to Austrian tax the annual interest income of up to 4% is exempt from capital withholding tax irrespective of holding period and date of initial investment. This means that the yield after tax is higher than for ordinary bonds with the same rate of interest. In addition to the exemption from withholding tax, the fact that the initial investment is tax-deductible as special expense results in a higher yield as well. Holders of s Wohnbaubank bonds may exchange them for participation certificates in s Wohnbaubank at a later point in time, should they wish to do so. |
| Secondary market | Any security transaction happening after the issue. |
| Securities account | Bank account that securities are deposited in. |
| Security | Certificate representing financial rights, e.g. the right to interest payments or a share in the company. The best-known securities are shares, bonds, bills of exchange, cheques, and warrants. |
| Seniority | Seniority ensures that the holder of a security has superior rights with regard to the issuer’s assets. In the case of the issuer’s bankruptcy, senior securities come with senior rights as to having their claims serviced from the bankrupt’s estate before any other claims. This special status vis-à-vis all other creditors is laid down by law. |
| Share | A share certifies a participation in the equity capital of a company. Shareholder rights: voting right, right to a dividend, subscription rights (rights issue), right to a share in the case of winding up. |
| Share in a fund | Security that certifies the joint pro-rata ownership in the assets under management of a capital investment fund. |
| Share index | Contains a representative selection of shares that are weighted according to certain criteria in order to reflect the development of the market. |
| Share price | Price at which supply meets demand. |
| Share/bond certificate | Main certificate of a security. |