Terms Dictionary


Simultaneous published transferable documents of the issuer in his name where legal possessor results in identical rights and obligations in compliance to Law and issuer decisions.

Stock Exchange

A legal entity in possession of a Securities commission license to operate business of organized trading securities and standardized financial derivatives.
The Belgrade Stock Exchange's Statute defines the dealings of the Belgrade Stock Exchange
The Exchange's operations:

1. Registers market material which is traded on the Exchange,
2. Secures prerequisites to trade market materials on the Exchange,
3. bind market material offers and demands,
4. evidencing operations of buying and selling market materials concluded in regulated off-board and free off-board trading,
5. Declare obligations and conducting equalization of obligations based on operations concluded on the Exchange,
6. obavlja poslove ostave tržišnog materijala,
7. determine interest rate, exchange rate in other words market material value achieved through trading on the Exchange,
8. exchange rate public notice for market materials which are traded on the Exchange, exchange index as well as other information and data relevant for operation on the Exchange,
9. discontinue the misuse and unfinished assumed obligations (realistic security),
10. releases books, publications and magazines in connection with the Exchange business,

These following market materials are exchanged during organized trading:
1. bank drafts and short – term securities,
2. foreign exchange currency in compliance with Law on Exchanges, stock exchange business and stock brokers and Law on foreign exchange business
3. securities which are of sound value based on Law on Securities and Law on business or foreign currency
4. shares and long-term securities,
5. gold and other precious metals,
6. financial derivates,
7. commodities.

The Belgrade Stock Exchange possesses a license to organize trading and trade:

• commodities
foreign currency
gold and precious materials

Resource-Belgrade Stock Exchange website- www.belex.co.yu

Stock Broker

Legal entity based on specific Law in conjunction with trading securities on organized financial exchange markets. Depending on the type of organization of the stock broker, authorized entities for trading may represent themselves as:

*Broker- stock broker in trading securities may in his name or on behalf of his client (commissioner) or in the name or on behalf of the client (assignee). A broker charges commission for his services and besides acting as a broker he may also act as a consultant. According to rules and regulations, commission is to be paid at transaction execution;

*Dealer – a trader of securities on his behalf and on his account (principal). Profit is earned through the difference in price of securities (purchase price – selling price), tolerating potential risk of loss. The dealer may act as a commissioner and as an assignee.

Upstairs broker

physical person employed at the Exchange through the help-desk he/she enters doers for trading into the BELEX software program that are received from stockbrokers.


a unique information system, in other words an electronic system that is a platform for trading on the Exchange.

Exchange list

A Stock Exchange report which contains the most recent data on securities, the actual amount, the actual price and also the change in prices.

Quoted price

price of securities listed on the Exchange’s exchange list.

Price increment

the least amount allowed for price increase compared to the last achieved price for every type of security.

Central securities depository and clearing house.

is a public company which operates central authorized evidence of possessors and legal rights from dematerialization of securities and other financial instruments, third party legal rights over securities and conducting operations of clearing and settling securities and monetary obligations occurred through operating securities. (Law on securities market and other financial instruments – link)

CFI code

symbols of securities from specific issuers in which legal possessors of securities acquire their rights based on class in regards to series of these securities. The CFI code consists of a number of syllabic symbols which are identified by the type of security, specific rights fundamentally individualized by regulations (List of types of securities and other financial instruments).

ISIN number

contains combinations of numbers and symbols which are identified by the country issuing securities, issuer of security type and other substantial factors of the security.

Authorized bank

is a bank with a Securities Commission license for operating and conducting business in the broker – dealer company field, in compliance with regulations of Law on securities and other financial instruments.

Custody bank

is a bank with a Securities Commission license for conducting business in the field of managing securities accounts on behalf of the client and proceeding according to the clients order in connection with securities and in compliance with regulations of Law on securities and other financial instruments.

Purchase/sell order

orders that the client buyer and client seller submit to their broker for executing purchases or sales of securities.

Trading in securities

every sale or purchase of securities which is conducted after its issuance.

Nominal share price

the price on issuance day regulated by the issuer on the basis of company dealings.

Imputed share value

share value declared by the total assets decreased by total loss and total liabilities (liabilities, long – term reserves and accrued costs), divided by issued number of shares, proportionally to their book value per share.

Market price value

a price which is formed on the Exchange by direct cases of supply and demand.

Mainstream value

a price which is achieved through maximum turnover of shares, measured by the number of shares.

Fluctuation zone

the largest allowed declination of value from indicative price of securities based on the range of value within the scope which is allowed for concluding a transaction at the same exchange meeting.

Benchmark value

a price maintained at the border of the fluctuation zone which at that point concluding transactions is not permitted.

Auction value

a price maintained at an auction organized by the minimum price method.

Indicative value

mainstream value, in relation to auction value in other words price at closing and achieved at previous trading of securities in relation to declaring fluctuation zone. For first securities trading the indicative value is declared in compliance with these Regulations.


the converting of all shares of the same type and same class into another pursuant to equalizing different nominal share values which comply with book value in order to introduce secondary turnover of shares with one nominal value.


declaring borrowed liabilities, demanding securities and monetary resources between the participants on the organized market on the basis of securities operations.

Balancing of accounts

conducting liabilities in-between participants on the organized market by way of transferring securities and monetary resources on the basis of securities operations.

Blok trgovanje

the definition of a block transaction is a security which is traded on the exchange market or the free exchange market that is concluded absent of the exchange meeting where trading is done through mainstream method or method of continuous trading in a bilateral ratio of one buyer and one seller. This process is concluded in compliance with Rules and Regulations of business of the Belgrade Stock Exchange JSC Belgrade.

Distribution of securities

selling of securities that commits:

1) the issuer in the process of issuing securities through way of public offering, unless the Law states otherwise and

2) the underwriter which based on the contract on executing services for organizing distribution of securities with the obligation of their purchasing from the issuer, the purchasing of securities with the intent to further sell through way of public offering.


is someone who intends to refer with relation to referring public offering during first public sales of securities and other financial instruments as well as individuals that have issued securities and other financial instruments.


an individual purchasing securities except for the underwriter who purchases securities from the issuer for their further distribution by means of public offerings as well as the individuals purchasing other financial instruments.


document – personal identification card which contains business data of the financial statement from the last three years, industry data, active capital assets, market position, dividends and losses, issuance of opinion, data on issued shares, majority owners, nominal and book share value and etc.

The Prospect must be certified by an authorized employee and submitted to the Exchange in order to schedule trading.

Securities public offering

is an offering geared towards an indefinite circle of individuals for registration and payment of securities during distribution of securities with relation to every offer for purchasing or selling securities while trading securities on the organized market.

Public offer

is an offering for potential buyers purchasing Companies to enter themselves for auction participation on the Exchange which is emitted in resources of public announcements.

Public Company

is a legal entity which has issued securities through means of public offering on the organized market where its business operations are supervised by the Securities Commission and who have the obligation to continually announce the public of its operations.

Closed Company

is a legal entity who hasn’t issued securities by means of public offering in relation to the Prospect for distributing securities, in other words they have been issued but have all been withdrawn or they have reached their expiration date.

Privileged (insider) information

is information that is not available to the public, but is important to validating price of securities.

Share fund

legal entity based on the Law on Share fund (“SL. Glasnik RS” br. 38/2001) to whom shares are transferred to in other words granting:

remaining on the day of enforced law which put in order company privatization in companies that completed privatization of governmental portions, in other words government capital based on stipulations of Law on ownership ("Službeni glasnik RS", br. 32/97 i 10/2001);
shareholders that held back on payments of registered shares which are paid according to Law on government ("Službeni list SFRJ", br. 84/89 i 46/90), Law on requirements and procedures of converting companies into other ownership ("Službeni glasnik RS", br. 48/91, 75/91, 48/94 i 51/94) and Law on ownership transformation ("Službeni glasnik RS", br. 32/97 i 10/2001);
which the Republic of Serbia development fund transfers to the share fund for sales;
remaining after capital sale in the process of privatization in accordance to Law on privatization;
The Share fund is obligated to sell all shares in its possession no later than six years from the date of enforced law which stipulates privatization.


is an obligatory monetary amount which potential buyers deposit in the Share fund account in order to secure participation for the auction.


is a privatization method through public emulation for potential buyers in compliance with foregoing declared conditions for selling.


is a method of selling Companies-government capital, publicly gathering offers from potential buyers in compliance with declared conditions for selling.