- ISIN
- International Securities Identification Number. A 12-character code that identifies one specific share or fund class, for example ES0148396007 for Inditex.
- Ticker
- The short trading symbol on an exchange, such as ITX for Inditex on Bolsa de Madrid.
- IBEX 35
- Index of the 35 most liquid companies listed on the Spanish exchanges, run by BME.
- Market capitalisation
- Share price multiplied by the number of shares. The market value of the whole company on a given date.
- Revenue (net sales)
- Money earned from selling goods and services in the period, before costs.
- Net profit
- What is left after all costs, interest and taxes. We use profit attributable to the parent company.
- Net margin
- Net profit divided by revenue. How many cents of profit each euro of sales produces.
- ROE (return on equity)
- Net profit divided by shareholders' equity. How much the company earns on the money owned by its shareholders.
- EPS (earnings per share)
- Net profit divided by the number of shares.
- Payout ratio
- Dividend per share divided by earnings per share. The share of profit paid out as dividends.
- Net debt / net cash
- Financial debt minus cash and short-term investments. When cash is larger, the company has net cash.
- Dividend (interim, final, special)
- Cash paid to shareholders from profits. Interim is paid before the year's accounts are approved, final after the shareholder meeting, special is a one-off extra.
- Ex-dividend date
- From this day the share trades without the right to the next dividend. To receive it you must own the share at the close of the previous trading day.
- Scrip dividend
- Shareholders choose between new shares or cash, as in Iberdrola Retribución Flexible.
- AGM (shareholder meeting)
- Yearly meeting where shareholders approve the accounts, dividends and board appointments.
- TER (total expense ratio)
- Yearly running costs of a fund as a percentage of its assets: management fee plus other operating costs. Does not include trading costs inside the fund.
- Ongoing charges
- The cost figure shown in the KID, close to the TER.
- Tracking difference
- Fund return minus index return over a period. Usually negative by roughly the costs. The closer to zero, the better the fund follows its index.
- Portfolio turnover
- How much of the portfolio is bought and sold in a year. High turnover means higher hidden trading costs.
- AUM (assets under management)
- Total money invested in a fund. Very small funds are more likely to close.
- Accumulating vs distributing
- Accumulating funds reinvest dividends. Distributing funds pay them out to you, which is taxed in Spain when received.
- Physical vs synthetic replication
- Physical funds own the index shares. Synthetic funds use a swap with a bank to get the index return, adding counterparty risk.
- Domicile
- Country where a fund is legally based (Spain, Ireland, Luxembourg). It affects taxes and whether Spanish switches apply.
- Currency hedging
- A hedged class removes most of the effect of exchange rates, for example USD against EUR, at a small cost.
- UCITS
- EU rulebook for retail funds that sets diversification and investor protection rules. UCITS funds can be sold across the EU.
- ETF vs mutual fund
- An ETF trades on an exchange during the day like a share. A mutual fund is bought and sold at one daily price through the manager or a distributor.
- KID
- Key Information Document. The standard three-page summary of a fund's risks, costs and scenarios.
- SRI (risk indicator)
- The 1 to 7 risk score in the KID.
- SOCIMI
- Spanish listed real estate company (similar to a REIT) that must pay out most of its rental profit as dividends.
- Significant holding
- A stake of 3% or more of voting rights (1% for tax-haven residents) that must be reported to the CNMV.
- Director trade
- A purchase or sale of company shares by a director, senior manager or closely linked person, reported to the CNMV.
- Holding company
- A company that owns stakes in others. Many Spanish family fortunes hold shares through one, for example Pontegadea.
- Certainty labels
- Confirmed: in an official filing. Reported: published by reliable press but not independently verified. Inferred: deduced from linked public records.
- Wealth origin labels
- Inherited, built from zero, mixed (inherited a stake and then expanded it) or not publicly established.
- Net worth estimate
- Wealth estimates published by outlets such as Forbes. They are estimates, not audited figures.