Company Related Terms


Shares are the units of the ownership of a company, usually traded on the stock market. They are also known as stocks, or equities.

Open offer

An open offer is a secondary market offering that allows existing shareholders in a company to purchase new shares in the business on a pre-emptive basis and at a lower price, or discounted rate, to the prevailing market value.


The first definition refers to share prices. Every public company determines what the nominal price of its shares will be, which can also be known as the ‘par value’ of each share. Once a nominal share price has been set, the company cannot sell any shares for an amount below that nominal value.


A company’s liabilities are the debts and obligations represented on its balance sheet. They are the opposite of assets.

Inception Date

An inception date refers to the date when something officially starts or when something was originally created. This could refer to the date when a company is created (and formally registers with the likes of Companies House, for example) and begins trading, or the date of when a policy (such as an insurance policy) begins.

Concentration Ratio

An industry’s concentration ratio is the size of a certain number of firms in an industry compared to its total size. It is used to calculate one or more firms’ dominance of their sector.


When one company decides to take over another one, it is referred to as an acquisition. The acquiring company will do this by purchasing either the majority or entirety of the ownership stake of the company being taken over.


An unsecured bond backed solely by the general credit of a company.

Generally Accepted Accounting Principles (GAAP)

GAAP (Generally Accepted Accounting Principles) are accounting standards, conventions and rules. It is what companies use to measure their financial results. These results include net income as well as how companies record assets and liabilities. In the US, the SEC has the authority to establish GAAP. However, the SEC has historically allowed the private sector […]

Open-end Company

The legal name for a mutual fund. An open-end company is a type of investment company.