German Stock Corporation Act

German Stock Corporation Act In law in Germany pertaining to stock corporations (AG) and commercial partnerships limited by shares (KGaA). The German Stock Corporation Act (Aktiengesetz), enacted on 6 September 1965, regulates in particular the founding of a company, the legal relationships between the company and its partners or shareholders, capital, changes to the capital […]

Entry Standard – Frankfurt Stock Exchange Glossary

Entry Standard Capital market access provided by Deutsche Börse for small and medium-sized companies as an alternative to EU-regulated segments Entry Standard is a transparency standard within the Open Market (Regulated Unofficial Market) with additional requirements. Companies in Entry Standard must meet the following criteria and publish on their website: significant company news or circumstances […]

Electronic exchange – Xetra – Frankfurt Stock Exchange Glossary

Electronic exchange A largely automatic, computer-based system for securities trading An electronic exchange is a trading platform in which order entry and forwarding, matching of buy and sell orders, and price determination are performed by a computer. In most cases, the system also includes functions for clearing and settlement procedures, market supervision, and the publication […]

Clearing – Frankfurt Stock Exchange Listings

Clearing The netting and settlement of claims and liabilities arising from securities and derivatives transactions Clearing is typically performed by a central institution, the so-called clearinghouse. The clearinghouse determines the bilateral net debt of buyers and sellers involved in exchange transactions, and, at the end of the trading day, provides its members with a summary […]

Double listing – Frankfurt Stock Exchange Glossary

Double listing The listing of a security on more than one exchange. Companies become listed on a second exchange in order to reach a broader-based public and attract additional investors. Because the fragmentation of share capital between different exchanges often results in diminished liquidity, companies usually undertake a capital increase in connection with a double […]

Disclosure Requirements (Ad Hoc) on the Frankfurt Stock Exchange

Disclosure requirement (Ad-hoc disclosure) Obligation of issuers of securities to immediately report and publish any information that might have a bearing on the price of their securities. The regulations pertaining to the disclosure requirement are contained in section 15 of the German Securities Trading Act, which states that issuers of securities admitted to the Regulated […]

Directors Dealings and Insider Trading On The Frankfurt Stock Exchange

Directors’ Dealings and Insider Trading on the Frankfurt Stock Exchange Private purchases and sales by management of shares they own in the company they manage Directors’ dealings cover securities transactions by people with management duties at publicly traded companies. Since 1 July 2002, such transactions are subject to new notification rules. Per section 15a of […]