A.Applies to the classification by a rating agency to instruments with a good ability to pay principal and interest on the conditions and terms agreed, which should not be affected by any changes in the issuer within the sector or area or the economy which it belongs. Only in extreme cases might be slightly affected the risk of the rated instrument.

Access.Refers to communication established between the Stock Exchange and the corresponding diffuser for data transmission.

ADR.American Depositary Receipts. Negotiable securities that are listed on one or more stock markets, different from the issuing market of origin, they constitute the ownership of a specific number of shares. They were created by Morgan Bank in 1927 in order to encourage the placement of foreign securities in the United States. When negotiation is going to do in that country they are American Depositary Receipts ADRs, and when they are to be transacted outside of the United States, programs are established for Global Depositary Receipt - GDR's.

Agent.Term used to define a brokerage firm acting on behalf of its clients as a broker to buy or sell securities. At no time it takes possession of the securities during a transaction.

Agrarian Debt Bonds.Are issued by the National Agrarian Institute to the bearer. They are intended to pay for commitments in respect of expropriation of farms. They have a term of 8 to 10 years and interest is paid on a quarterly, semiannual or annual basis, as well as at maturity.

Alcista.Bullish. Stock position under which it is estimated that quotes will rise.

All or Nothing.Term specified in the negotiation of securities by automated means, in order to perform the purchase or sale of securities by the total expressed in the order.

Alpha coefficient.Is a ratio that compares the specific risk of a title in relation to the systematic risk of the market. It is calculated by the formula that measures the profitability of the stock in relation to a given market return

Arbitration.Is simultaneous purchase of a title in a particular stock market and sell the same in another market at prices that would generate profits at the completion of that event.

Asset Pricing Model of Capital (CAPM).Theory that proposes that the expected return on a well diversified portfolio should (in a linear relationship) be equal to the risk-free rate of return plus an amount that is proportional to the beta of the portfolio.

Assets.Rights of a company that can be valued economically, which must be recorded in the accounting books by their purchase value. Assets represent corporate investment in operating capital or destination of funds. They are divided into fixed assets or circulating assets.

At Future.This refers to securities, it means a sales contract in which, even though its price is agreed upon at the time of delivery of the securities, it is not carried out until a later, prior to a convened date.

At Par.Exchange or quote to 100 per 100 of face value of the title.

At Sight.Clause accompanying a debt title that becomes payable to its simple presentation.

Auction.In the primary market for securities, an award system by which the securities are subscribed by those willing to pay the highest prices on issuance.

Average Amount.It is the result (quotient) of dividing the amount traded by market capitalization. This index gives a weighed measure of liquidity.

Award Price.It is the price at which values are allocated in the auction procedure. It is also the price that is finally fixed at a public offering of securities after making the appropriate prorating and discounts set out in the offer document.

B.It applies to the classification by a rating agency of instruments that have a low risk for investment, a good capacity to pay principal and interest on the conditions and terms agreed, but there is a view from the issuing qualifier of possible changes in the economic sector to which it belongs, or that in the course of general affairs the risk may slightly increase.

Band.Is when prices of a title fluctuate within a range.

Basic Financial Statements.Refer to the Balance Sheets and Profit and Loss statements of a company. Besides these there are other statements that are considered auxiliary to a business at any given time, as reflected in the accounting records.

Batista.Short speculative position where the price of a security, sector or stock market is expected to fall.

Bearer.A person having ownership of a security, document or right.

Bearer bonds.Bonds that do not directly express a person as holder of the title, just the mere possession would entitled the rights arising out of that title.

Beneficiary.A beneficiary is a person who receives the benefits attached to a security or title.

Beta Coefficient.Is a ratio that compares the value of a systematic risk measured by volatility, with the market. Its value is the ratio of covariance of the title and the covariance of the market. In addition, the beta coefficient is used as a criterion for classifying financial assets through their volatility. A beta equal to one indicates that volatility of an asset is normal or neutral, a beta greater than one indicates a highly volatile or aggressive asset and a beta less than one, is a low volatility or defensive asset.

Bias.Property of a probability distribution that creates a higher probability of possible values and of the mean of the distribution.

Bond.Is a security put on sale by banks, corporations or the State to capture cash from the market.

Bonds of Expropriation.Are bearer bonds issued by the Central Government through the Ministry of Finance. The length is 8 to 10 years and the interest rate is fixed or adjustable. They are exempt from income tax. These bonds are intended to finance the acquisition, by regular means or expropriation, of real estate affected by the execution of works of public or social interest, by the Ministry of Infrastructure (MINFRA).

Book value or Value in Books.Obtained by dividing the net equity by the total number of shares issued by the company.

Boom.English term that implies a significant increase in volume and market prices.

Brady Bonds.Or External Bonds of Public Debt are instruments issued in foreign currency for a country within an issuance intended to refinance the country's external debt under the program proposed by the then Secretary of the U.S. Treasury, Nicholas Brady. This refinancing plan was welcomed by many emerging economies worldwide in the late 80s and early 90s. Among Latin American countries that benefited from this plan may be mentioned Mexico, Venezuela, Argentina, Ecuador and Brazil, among others. In the case of Venezuela Brady Bonds were issued for up to one billion dollars. The refinance conditions posed by Venezuela to its creditors contemplated issuing a series of Bonds where the most important were the Par Bonds (Par Bond) and the Debt Conversion Bonds (DCB's).

Brokerage House.Is a Brokerage company authorized by the National Securities Commission to carry out all brokerage activities of securities and related activities. When a brokerage firm is admitted to a stock exchange it can use the term broker-dealer. 63 brokerage firms belong to the Caracas Stock Exchange, each of them is the owner of a share after having been approved for membership by the institution.

C.Applies to the classification by a rating agency to instruments having poor ability to pay principal and interest since they are vulnerable to adverse changes in the issuer, sector or area to which they belong or on the economy, possibly causing delay in payment or loss of interest.

Capital Bonds of private external debt .Are issued in U.S. dollars by the Central Bank of Venezuela to the supply of foreign exchange for the principal of the debt acknowledged to 18 February 1983. They have a maturity of 20 years and an interest rate of 4%. The capital is depreciated annually. They are not exempt from income tax.

Capital Market.The capital market is the set of financial instruments and institutions that provides the mechanism to transfer or distribute funds from the mass of savers to the applicants of such capital. In other words, the Capital Market, as any other financial market, works to channel savings to provide a yield to the investor. For businesses, the capital market is constituted as a source for funding for their economic activity.

Caracas Stock Exchange.Is a Private institution organized under Venezuelan law to facilitate trading of securities approved by the competent bodies, acting under the supervision of the National Securities Commission. The Stock Exchange, founded in 1947, has an area open to the public where previously the brokers came to the wheel, and since 1992 some brokers also attend but most currently operate from their brokerage firms, interconnected by a network of computers linked via microwave and fiber optics (the Remote Switching System). The public has access to the Hall of Investors at the Exchange, from where they can see the transactions through consultation stations. Other investors know price quotations in real-time and market sessions from remote terminals located in different cities and countries, while the bulk of people and institutions know the outcome of the exchange through the Internet and various media.

Cartel.Agreement between companies to limit competition between them.

Cash Dividend.Is a participation in cash for each share in ownership when distributing the profits of the company

Cash of Securities.Is a clearing and settlement system of titles that simultaneously provides an exchange of securities and cash at a settlement date to be agreed upon. In the settlement date, the securities are transferred from the seller's account to the securities account of the buyer. Through this system no physical movement of securities or cash sums takes place. This entity facilitates the rapid transfer of funds and securities deposited by natural or legal persons active in the stock market, thus giving them the legal certainty in the conduct of operations agreed, while allowing physical immobility of these values, minimizing the risk of theft and forgery, among others.

Certificate of Deposit.Is a title to order or bearer which includes a right of claim against the credit institution which is issued in return for the deposit of funds received from the owner. The delivery of the title is a prerequisite for the return of the deposit.

Channel.On chartist analysis (or graph) is the fluctuation band within which the values of the oscillations occur in quotes that have followed a definite trend, which is formed by two parallel trends.

Chart or graph analysis.Chart or graph analysis that tries to forecast future fluctuations of the stock changes on the basis of previous fluctuations. It is about analyzing past swings in the graphics of prices. It also applies to specific techniques to try to guess from recurring trends which can predict the future of the stock market. (See Análisis Técnico - Technical Analysis)

Closing a Contract.In the futures and options markets it involves carrying out a transaction contrary to the initial purchase of a contract otherwise identical to that previously sold or selling one identical to the originally purchased.

Closing a position.In the futures and options markets, is to execute a transaction with identical characteristics but contrary to that which gave rise to the contract.

Closing Price.This is the last price determined in a trading session and is produced by the free interplay of final supply and demand of the market.

Collateral.Is a characteristic of certain risk interest type in lending operations, referring to those not directly affecting the success of the operation. It also refers to the guarantees covering the risks.

Collective Investment Entities.Are those institutions that channel the contributions from investors to raise common capital or equity, comprising a portfolio of securities or other assets.

Commercial Paper.Commercial papers are debt instruments massively issued by corporations whose maturity are short-term.

Commission.Is the compensation paid by the investor to a broker or a brokerage house to execute a purchase order or sale of securities in the stock market or to manage the titles of the customer.

Common Stock.Basic form of ownership of a corporation, which generally gives a shareholder the right to vote. It is itself a representative title of the shareholder as his capital contribution to society, having the same features and giving equal rights to its holders.

Compensation.Is to extinguish two or more debts or swaps when they are of the same kind and amount. The orders are offset in the stock market when they are received by agents operating in the stock market as long as they relate to the same amount, that is, matching supply and demand.

Connection.Refers to communication, Real Time and / or delayed time.

Convertible Bonds.Are eligible, after maturity or time periods specified in the issuance, to conversion into shares of the issuing company at a price or with a discount on the quote stated in the issuance.

Convertible Bonds.Bonds that give their owners the possibility of exchanging them for shares of the entity issuing them, in proportions established beforehand, or by approval from shareholders and / or bondholders.

Convertible Stock.Stock that allows the holder the option to convert the stock into other securities issued by the same company.

Correlation.Is a measure of the link between the evolution of changes in quoted value and the changing environment in which the issuing company operates. The correlation measures the degree of sensitivity of a title to a number of factors related to the issuing company.

Coupon.Is part of a title or value that gives right to payment of interest or dividends.

Coverage.Is a provision of funds to ensure a stock operation. It is also the guarantee provided in the credit or future operations. It also applies to contracts when hiring spot coverage on the same asset in the futures market. It is also a protection operation in futures markets to compensate with an equal but opposite position the movements in asset markets through the development of futures markets of derivative products.

Crime of Insider Information.Is a punishable act performed by people whose profession has sensitive information on financial markets on a particular listed company or on short-term prospects of market value or confidential information, using that for their own or others' benefit before it is known to the public investor.

Cross.Is a transaction made by the same broker who owns the customer purchasing the one hand and a seller client on the other, they want to purchase the same number of shares at the same price. A crossing can only be done at the best prices on the market, or within the gap formed between the best bid and best price.

CVV.Caja Venezolana de Valores, C. A. Is a Corporation of Authorized Limited Capital, whose sole object is the provision of deposit services, custody, transfer, clearing and settlement of securities offered to the public in Venezuela, licensed by the National Securities Commission . Its operation is governed by the Law on Banks and Securities and its regulations.

D.Applies to the classification by a rating agency to instruments that have minimal ability to pay principal and interest with a high probability of delay in payment or loss.

Data.Refers to information that occurs during a session of SIBE

Data Dissemination.Refers to the transmission of data through electronic signals through computer and communication systems.

Data Feed BVC .Real time data record on the market movement in FIX format.

Debacle.French term referring to a disaster in financial markets, it can refer to a widespread and deep bear market and can be used as a synonym for crash.

Debentures.Bonds that are backed by all assets of the company and not one specific to it.

Deferred Time.In the stock market, transmission of data after 15 minutes of having been produced in real time.

Delta.It is a tool to evaluate in the options market the sensitivity of changes in spot prices of the underlying asset in relation to the price of the option.

Demand.In the stock market, is the quantity of shares or other securities that brokers or their customers are willing to buy at given prices and circumstances.

Dematerialization.Is to replace physical securities by "book entry". These account entries have the same nature and contain in themselves all rights, obligations, conditions and other provisions contained in the physical securities. These dematerialized securities are recognized as "securities represented by book entries"

Democratization of Capital.Is a term used when the stock ownership of companies is spread among a large number of investors, who have each a small portion of that property.

Discount Bonds.Bonds whose nominal value is higher than the money actually paid to acquire them.

Distribution of Securities.Is an operation in which values are assessed in an issuance when there is excess demand on the public sale offer or subscription.

Dividend.Is a proportional share that corresponds to each stock in the distribution of earnings caused by a company, after attending legal, statutory and voluntary reserves. Dividends may be of different kinds: in stock, cash and in kind.

Dividend in Kind.Is a quota corresponding in proportion to each share, paid for with assets other than cash or shares of the company.

Dividend in shares.Is proportion paid in stock corresponding to each share held when distributing the profits earned.

Dow Theory.It is the origin of technical analysis and is based on experiences and observations of the historical quotes made by Charles Dow, for whom there are three simultaneous movements in the stock market: 1) primary or long-term trend upward or downward long period that can last one year or more, 2) secondary: primary deviations from the trend lasting from three weeks to three months, 3) daily: fluctuations that occur daily in stock prices.

E.Applies to the classification by a rating agency of rating instruments whose issuer does not provide sufficient or representative information.

Earnings Per Share.Is the performance given to each share issued and is measured by the net benefit of the issuing company divided by the number of ordinary shares issued.

Effective Date of Recording the Profit- F.E.R.B.It is the date of allocation of the profit to the person concerned by the issuing entity. The period between the FLTB and the FERB is commonly known as "Period Without Dividend".

Efficient Market Theory.It is a widely criticized theory based on the assumption that stock markets operate with such efficiency that the price formed in these markets is a good estimate of their intrinsic or real value, and it is based on all participants having perfect knowledge of market functioning and price formation. Based on this theory the share prices immediately reflect any changes or information that occurs.

Electronic Wheel.It is the market session to buy and sell securities electronically. The Caracas Stock Exchange held its first electronic wheel in February 1992 and since 1994 the brokerage houses began to trade directly from their offices through remote stations.

Engulfing.In stock analysis, are two parallel, symmetric moving averages (smoothed version of the trend of a variable), which cover fluctuations in the prices of the securities.

Equity.Is the set of resources used in the production of goods and services and in the generating of profits. There might be two slightly different concepts. In economic terms, it refers to productive assets required to produce other products or add value to such production of goods. In terms of an investor it can mean the total funds used to purchase securities, fixed assets, other assets, cash, etc..

Euroclear.It is one of two international clearing systems to Eurobond transactions in which the Caracas Stock Exchange participates. Euroclear has contracts with other depository banks in major financial markets worldwide. These depositories offer to Euroclear Society an escrow service, and generally act as agents for payment of securities. They can also deposit securities with domestic clearing systems such as the Depositary Trust Company of New York or Kassenverein Germany. A service of clearing and settlement of securities is a system that simultaneously provides an exchange of securities and cash in the settlement date to be agreed upon. Buyers and sellers can send settlement instructions to the center in Brussels by switch operations, telex or mail. On the settlement date, the securities are transferred from the seller's account to the securities account of the buyer. Through this system no physical movement of securities or cash sums takes place.

Evolution of a value.Is the course of daily prices of a security in a financial market.

Execution of an Order.Is compliance by the authorized intermediaries in financial markets of an order given by a customer for buying and selling securities.

Exercising an Option.Is to use the recognized and agreed upon right of an option contract of purchase, sale or exchange.

Export Bonds.These are securities issued by the Nation, through the Ministry of Finance. These securities are held by the bearer and do not generate interest. The duration of these bonds is 2 years counted from the date of issuance. Their primary purpose is to promote nontraditional exports. They are used to pay national taxes. These bonds are divided into Industrial-Agricultural Sector and the Agricultural Sector, having the issuance of the former been eliminated on 15 June 1991.

Exposed position.Buyer or seller position in cash, uncovered by futures positions or with compensatory option or futures positions or with options unmatched by purchases or sales of opposite contracts.

Extraordinary General Assembly.A meeting of shareholders of a company, scheduled and installed in the manner prescribed by law and statutes, to deliberate on one or more specific topics of social interest. They meet at any time, it is different from the ordinary annual meeting.

Fall.In the stock environment, a decrease in stock quotes.

Fixed Income Securities.Securities conferring a right to charge a fixed interest on a regular basis, although there are securities whose interests are variable depending on a reference rate type.

Fork.Holder and bearer of securities

Fundamental Analysis.This analysis technique to predict future quotes of a stock is based on the detailed study of the financial statements of the issuing company and its future prospects for expansion and profit generation capacity. Fundamental analysis also takes into account the situation of the company in its industry, competition, stock market developments and the group where it is located and in general, socio-economic, financial and political prospects. With all these components, the fundamental analyst comes to determining a company's intrinsic value around which the quote should be quoted on the stock exchange.

Futures Contract.Is a sales contract to term by which one party agrees to surrender a financial or non financial asset to another party, at a term exactly determined within the contract for a price set at the time of award of the aforementioned contract .

Gold Stock.Stock with special voting rights that give the holder a special power over other shareholders. This term applies especially to the shares held by some governments after privatization.

Head and Shoulders.Technical analysis chart formation which is widely used and characterized by the existence of a short period of three peaks in trading, being the center peak the highest. It Is interpreted as the end of a bull phase and the origin of a clearly bearish trend.

Holder.Bearer of securities.

Indices of liquidity.They measure how much the company can rely on its internally generated cash to finance its operations. Out of these the most popular indices are: 1) the relationship between assets and liabilities, 2) the acid test or easily usable assets ratio (cash, marketable securities and accounts receivable) from liabilities.

Initial Issuance on Market.Is the first issuance and placement to the public that a company executes for the first time to access organized finance.

Investment Units.Different types of securities that are issued by collective investment entities, such as shares, debentures, participations or other instruments that grant rights to investors concerning the ownership and return on capital or equity of the respective entity in promotion to investment.

Investor Profile.Customer characterization by the brokerage firm based on the client's ability to take risks in the capital markets based on his comprehensive economic strength and type of price or market risk of the securities which are the object of the investment.

ISIN Code.In June 1995 the Caracas Stock Exchange was recognized as a member of the National Association of Identifying Agents (ANNA) based in Brussels. As a member of the Association, it is the responsibility of the Caracas Stock Exchange to create an international coding - following the ISO 6166 standard - that is, the ISIN (International Securities Identification Number) for all securities issued in the country. The creation of the aforementioned standard in 1989 followed a recommendation from the Group of Thirty (G-30) and has been adopted by major capital markets.

Issuance.Is the act of putting into circulation securities that are offered by the issuer for subscription. In general, it is the creation for circulation of coins, checks, drafts, negotiable instruments and securities.

Junk Bonds.They are issued by companies created to perform certain financial transactions, especially for buying companies through various techniques including hostile takeovers, or they may be issued by companies with poor credit and high risk. They often promise high returns to their subscribers.

Launch to Stock Market.Act by which a company goes to the stock market for the first time so that all or part of its shares become listed. The launch to stock market allows companies to obtain funding, but in order to get listed it is necessary to meet certain requirements.

Limit of Change.Maximum variation that the listing of a stock at a session can undergo with regard to the previous session. Maximum or minimum change at which each investor is willing to trade certain securities.

Limit Order.An order to buy or sell stock at a specific price.

Limit order book.List of those orders to buy or sell shares that a specialist cannot execute unless the share price is at a specific level.

Liquidation.Calculation and result of a transaction in securities, credit or any other property or value. The period to liquidate a stock, from the moment running through the system of transactions until being settled in the Caracas Stock Exchange is three (3) days; this change is effective as from July 1st, 2001

Liquidity.It refers to the ability of a market to absorb reasonable amounts of shares for the purchase and sale without making drastic changes in stock prices. Obtained by dividing the total shares traded between the number of shares issued, indicating the percentage of the issued shares that have been negotiated over a period of time (daily, monthly, yearly).

Live Voice.Traditional contracting procedure consisting to express the positions of supply and demand loudly, and thereby close the operations.

Long Position.It is synonymous of buying positions in the futures and options markets.

Low.Is an exchange of less than 100 percent, or less than the nominal or face value.

Managing Societies of Collective Investment Entities.Their sole purpose is to manage the equity of investment firms, whatever their type, and represent them in accordance with the terms of the administration contract that they sign to that effect.

Margin Account.Is an account opening through cash or securities as collateral that must be deposited by an investor to his broker or brokerage firm in order to secure a loan from his broker, in order to incur in future purchases of securities .

Market & Business Days.Refers to days on which members are allowed to arrange their operations in the stock market.

Market capitalization.Is obtained by multiplying the number of shares of a company by their market price. This indicator is also known as market value of the company, being the price that would be paid by an investor in the hypothetical case to acquire all outstanding shares of a company.

Market Model.Mathematical expression of the hypothesis that the returns on a stock reflect only two forces, the general stock market and the particular developments of the company that issued the stock.

Market Order.An order placed at the best price set by the market.

Market Performance.In a given period of time, variation experienced by the stock market index expressed as a percentage.

Market Presence.It is also an important indicator of liquidity. The ratio obtained dividing the number of days the stock has been traded in the market by the number of days on which trading took place. It gives an idea of the presence of the stock in the market, for example, a presence equal to 1, implies 100% presence of this stock in the market.

Market Price Value / Book Value Ratio.Ratio obtained by dividing the price of a share by its book value during a given date. Thus can be noted the premium or discount during market action trading in relation to shareholders’ wealth.

Market Value or quote.This is the price paid for the stock in the stock market. This price is changed in accordance with supply and demand of the security.

Maturity.Day in which an obligation ceases to exist. (See Maturity Date).

Maturity Date.The ending date of the lifetime value of a security, right, contract or any other document. In the options market, it is the date when the holder of a right to buy or sell cannot exercise the contract.

Members.Shareholders of the Stock Exchange, their representatives and guardians, duly authorized to act therein.

Model Arbitration Pricing Theory (APT).Theory that the expected return value is influenced by a variety of factors rather than by movement in the value of the entire stock market.

Mortgage Obligations.These are obligations that are backed by a first level mortgage on an asset of the issuing entity.

Mortgage securities.Securities that are allowed to be issued by mortgage banks, Investment Banks and Savings and Loan Institutions regulated by the General Law on Banks and Other Financial Institutions and the National System of Savings and Loans. The issuance of mortgage securities may only be verified with the agreement of at least two thirds (2/3) of the members of the Managing Board of the Issuing Bank. A copy of agreement and the issuance prospectus will be sent to the Superintendent with the documents and reports that the latter Agency may request.

Mutual Fund Investments.Collective investment entities aimed at investment in securities, whose public offering is permitted under the risk-sharing principle, without such investments representing a majority stake in the share capital of the society where investment is made, and no not allow its economic, operational or financial control. Mutual funds investments may be open capital or closed capital. The open capital mutual funds are those that are likely to increase the contribution of partners or new shareholders or total or partial reduction of inputs, without having to convene a shareholders meeting for this purpose. On the other hand, closed capital mutual funds are those that can register their investment units in a country's stock market, their main feature being that their capital is not subject to variation without making and convening a shareholders meeting.

National Securities Commission.Is an agency created by the Capital Market Law of 16 May 1973, amended in 1975 and 1998, which seeks the promotion, regulation, monitoring and supervision of securities market, with legal personality and its own equity which is independent of the National Treasury. It is under the Ministry of Finance, for the purposes of administrative supervision.

Negotiable Security.A security that is capable of transmission and negotiation by means acceptable in commercial law.

Negotiable Value.Securities. Value capable of negotiation on organized secondary markets.

Negotiated Amount.It is the amount traded in monetary units in a market; it can be in or off the stock market.

Net Change.Is the difference between the official closing price of the previous day and the last traded price

Nominal Value.It is the amount shown in the text of the security. It represents a fraction of the equity of the company. All shares of an issuance have equal nominal value, and the sum of all of these amounts to the equity of the company.

Nominative bonds.They directly express the person credited with the rights arising from the obligation.

Nominative Stock.Stock issued to the owner, which can be transferred with delivery of the stock to be duly endorsed by the holder.

Notes of the Republic.They are issued by the Republic of Venezuela usually through the Ministry of Finance. These bonds are issued to meet commitments without using immediate cash outlays. They are nominative, transferable by endorsement and feature fixed or variable interest rates. Interest may be paid periodically or at maturity, the latter being free from Income Tax for Financial Institutions.

O.I.C.V. International Organization of Securities Commissions.Global partnership that brings together more than 134 regulatory bodies for securities markets, which aims to promote high standards of regulation to maintain efficient markets and exchange information on experiences in the development of local markets of member countries to provide them mutual aid. The National Securities Commission of Venezuela is a member of this organization. The International Organization of Securities Commissions (IOSCO) is a forum whose main objectives are to maintain fair and efficient markets, to promote development of domestic markets through the exchange of information and experiences, to establish standards for effective surveillance of international transactions of securities and derivatives, and to ensure the integrity of the markets in a framework of mutual assistance. (See IOSCO).

Offer.It is a proposition that one person makes to another by communicating a desire to conclude a contract. In the stock market offers are usually for the purchase or sale and are introduced during market sessions.

Opening Price.It is fixed at the beginning of a trading session by balancing initial supply and demand.

Option.Contract whereby the buyer acquires, through payment of a premium, the option (the right) to buy (or sell) a specified securities at a specified price, while the seller is obliged to deliver (or buy) that asset.

Order.Instruction given by a client to a broker or brokerage firm for execution of a purchase or sale. If this is a Day Order, if not executed on the day of issuance, it will be eliminated from the transaction system at the close of the Market Session.

Ordinary General Assembly.A meeting of company’s shareholders which is held once a year, by prior notice, as prescribed by the statutes of a society. Its main purposes are the verification of results, to read balance sheets and financial statements, discussion and subsequent voting, election of directors, to decree and distribute dividends and formation of capital reserves, among other subjects.

Par Value.The nominal value of any security.

Performance.Profit or appreciation in money that an investor gets from professional activities or commercial or civil transactions. Remuneration for the use of money. It is specified as interest rate, discount rate for most financial assets traded in legal tender.

Portfolio.Combination of two or more securities or assets, all securities held by a natural person or legal entity. It is also known as portfolio investment.

Portfolio Diversification.Is a distribution in a set or portfolio of different securities in order to mitigate their overall risk. The diversification of investments can be accomplished in several ways: a) diversification of currencies and countries, b) diversification of securities, which involves a distribution of fixed and variable income securities and even in options and futures, c) diversification by stock sectors, which will offset the risks associated with economic fluctuations in the different sectors.

Preferred Stock.Representative title of the shareholder contribution to capital of the company, which gives its holder certain privileges, whether on voting, on the dividend to be received or on the equity share upon liquidation.

Premium Bonds.Bonds whose price to be paid exceeds their nominal value

Present Value.It corresponds to an asset, an investment, amount of money or a value in an instant deemed present, allowing to evaluate its equivalence with other assets, securities or investments. Its formulation has to take into account the existence of a given future value (FV) that allows us through simple or compound capitalization to find a current financial value (PV) at an established interest rate (and) or at the market at time of valuation and term (n) or periods (days, months, years) which should determine such present value.

Price / Utility ratio.Ratio calculated by dividing the stock price in the market by the profit generated by the stock in the period of one year. It indicates how many times the profits of the stock are equivalent to its market price and the number of years to wait to recover the investment.

Priority of the Operation.Criteria used to determine the execution of operations through the transaction system, whose determinant is defined by: 1) the best price and 2) the time of entry of orders in the system.

Profitability.It is the relationship between the utility provided by a security and the amount of money invested in its acquisition.

Public Acquisition Offer (O.P.A.).It is the process by which a certain percentage of shares in a particular company are offered for purchase. In Venezuela, the Rules of this process provide the following: A procedure in which the initiator intends to carry out the acquisition of shares, assets or rights of the company, offering as compensation the payment of money, whatever the form, terms or characteristics from the legal business, whenever occurring or may occur as the result that the initiator acquires, completes or increases a reputable participation not owned in a society that makes public offering of stock, provided it does not have the effects of taking control.

Public Debt Bonds.Are issued to the bearer by decentralized agencies, through the Ministry of Finance, in order to pay their liabilities or to finance their projects. They have a maturity ranging from 3 to 15 years, being 7 to 10 years the most common. In general, government bonds have a grace period of 2 to 5 years. Capital has redemption quarterly, semiannually or at maturity. The yield can be fixed or adjustable. The interest is exempt from income tax, and they are paid quarterly, semiannually or at maturity. There are also the Public Debt Bonds issued by the Nation, and the Municipal and State Public Debt Bonds, which are issued by municipalities and states, respectively, and bonds issued by companies where the Republic has participation equal or greater than 51% of the equity.

Public Offer.Mechanism by which securities are publicly offered. In Venezuela, the public offer is regulated by the Capital Markets Act and is made to the public, sectors or specific groups by any means of advertising or media. Initial public offerings are those directed on the first time to the investing public.

Public Securities Broker.Is defined in the Regulations for the Approval of Public Securities Brokers in Article 1 as the natural person or legal entity that has among its main purpose to conduct operations of brokerage of securities, after authorization by the National Securities Commission to act as such.

Quorum.Minimum number of shares that are required to attend the general meeting to be considered validly constituted and for agreements to be made.

Quote.Is the price registered in a stock market when entering a position to buy or sell, or when conducting a securities business.

Random walk.This stock theory casts doubt on the analysis of stocks for making investment decisions. According to this thesis, the changes in stock prices is a random variable and successive changes of stock prices are statistically independent of each other. This theory distorts the role of technical and fundamental analysis, and involves the denial of the stock trend.

Rates.They represent the table of commissions paid to members of the financial markets for their activity.

Rating Agencies .Are entities for rating issuance of fixed income securities depending on their risk. Therefore, the emissions in the international capital markets tend to have the rating of their creditworthiness and the ability to meet payment obligations arising from the issuance of securities.

Rating of Securities.Is a procedure, originally set up in U.S. stock markets, whereby a private entity with independent status and prestige analyzes and describes an issuance of securities through collateral, financial strength and profitability offered by the issuer. The qualification is divided into several categories depending on each rating agency, each category is applied based on the solvency and profitability of the issuer.

Real Estate Collective Investment Entities.Are those whose purpose is to channel resources into real estate projects.

Real Time.Simultaneous transmission of data.

Realization of Benefits.In stocks, disposal of the securities that investors bought for speculative purposes once there is a rise in their quote in order take profit. This sale of securities will cause a drop in prices.

Registration fee.Is a rate stipulated by the Caracas Stock Exchange to buyers and sellers for each operation performed.

Relevant Information.Mandatory information on the status of the issuing company and supplied by the same to the investing public. The result could be favorable or not to the company, the important thing in any case is to inform the public in a timely manner.

Repo operations.They consist of the cash sale of a financial asset and resale at a time and price determined at the initial moment. They are equivalent to a short-term loan that is implemented by selling a financial asset with repurchase commitment on a given date. The Central Bank of Venezuela introduced the use of REPO for the purposes of implementing monetary policy through open market operations, by selling bonds of the public debt from its investment portfolio with a repurchase agreement at a future date.

Report.It is a credit transaction that involves short-term investment in securities for a specific period, after which the investor is obliged to return them or others of the same kind, amount and issuer to the other party, by a generally higher price than the one negotiated in the first operation.

Repurchase Agreement.Transaction whereby a person acquires a security and the seller agrees to buy it back in a short period of time and at a predetermined price.

Rights Ratio.Number of rights received or purchased, that are necessary to acquire one new share at subscription price.

Rise.Increase in the value of stock prices.

Risk.The degree of variability and contingency of return on an investment. In general, we can expect that the greater the risk, the higher the return on investment.

Risk Aversion.Is the position of an investor who does not wish to submit his financial investments to high risks, his very selective investments always consider the elimination of risk despite the lower returns foreseen.

Risk Collective Investment Entities.Those entities have the sole purpose of investing in business projects to be developed in the medium and long term, which are highly risky for the investor.

Roof.It is the highest price of a security or market a market value, graphically plotting an uptrend.

Secondary Market.It Is where financial instruments or securities that have been placed in the primary market are under negotiation. The secondary market gives liquidity to the existing values. These negotiations are usually done on the Stock Exchanges.

Securities Lending.Surrender by loan of securities by a securities and financial intermediary for a client who has sold exposed and must deliver the securities sold.

Securities Portfolio.Is a set of joint securities held by a natural person or legal entity.

Securities Transaction.Equals an operation of purchase or sale at the stock market.

Securitization.This refers to the tendency of commercial banks in the international financial market to replace their activity of business loans and credits for the issuance and placement of securities and the organization, control, management and consulting of new issuance from businesses.

Self regulation.It is the activity whereby the stock exchanges and market participants are imposed capital and operational standards of conduct, compliance is monitored and violations are punished, constituting an ethical and functional character within the sector, complementary to regulations given by formal authorities.he authority given by formal authorities.

Series.This describes the various issuances of securities made by an issuing entity and they are distinguished by ordinal numbers or by letters of the alphabet. All securities in the same series have the same characteristics and rights.

Settlement Price.In the futures and options markets, it is the reference price to which settlement is calculated by differences in the execution date in the case of options or the expiration date in futures.

Short Position.In the futures and options transactions, a person must deliver a given asset (commodities, currencies, securities, etc.) at a later time, at a price already fixed. The asset isn't held in the present, hoping that in the future its price will drop and the person will buy it at a lower price before the delivery date

Short sale.Sale of an asset that the seller has borrowed and the borrower must pay to the lender.

SIBE Integrated Electronic Stock.Automatic mating processing system of purchase and sales orders of securities registered in the stock market.

Specific Risk.Risk associated with the economic and financial situation of a listed company. It depends on the conditions, performance, expectations and results of the issuing company. This risk can be decreased with an appropriate diversification of investments in various assets; this is also called Diversified Risk.

Speculation.Is a mode of acting on the stock market that involves quick purchases and sales separated by small time intervals, using variations of rise or fall in the price of a stock. Purchase of financial assets in order to sell them at very short notice for quick profits.

Start Date of the Subscription Period -FIPS.It is the date set by the issuing entity when the period of subscription of the shares from a capital increase begins. It is also the period within which shareholders do not wish to exercise that right. If the case contemplates it, they could trade the rights in the stock market.

Stock.Value title of negotiable character that represents a percentage of share ownership of the company issuing the title. Share of the capital of a corporation. Whoever has a share becomes partial owner of the company. The shares are issued by companies to raise capital.

Stock Exchange.A Stock Exchange is a center for duly organized transactions where brokers trade stocks and bonds for their clients. In the stock exchnges various kinds of securities are traded. A stock exchange is a market located physically, unlike other markets, where, despite being similarly organized, the negotiations are conducted via telephone or computer without the presence of the public.

Stock Operations.They cover the buying and selling brokers who hold public stock exchanges.

Stock Payable.Any payable capable of being negotiated in stock. Includes payables from businesses without financial problems and having a good risk rating. This instrument has not been negotiated in Venezuela yet.

Stock Ratio.Relationship between two stock magnitudes that can be expressed as a ratio or a percentage.

Stock to bearer.The holder justifies his tenure by possessing of the title. Representation system in securities of anonymous character, against the nominative stock where the holder is appointed.

Stock to Pair.Stock issued at the nominal value of the stock.

Stock Transaction.Equals an operation of purchase or sale at the stock market.

Stock Value.Describes the value of a security on stock exchanges. It is the estimate made by the stock market of a negotiable value.

Stockholder.Holder of one or more shares and therefore owns a corporation or limited liability by shares in terms of his contribution. This ownership gives the shareholder partner status and assigns rights under the Acts and Statutes of the society.

Subjacent Asset.That supports or defines a futures or options contract. The support asset has a strong impact on the value of the futures or options contract to the underlying. The underlying asset may be an asset by itself or an index of assets.

Subscriber.Person who partially or fully subscribes the securities of an issuance (underwriter). It refers to users, individuals or corporations, national or international who subscribe to any services, dynamic or static, offered by the Exchange.

Subscription fee.Is a privilege conferred upon the shareholders of a company to purchase, usually at par value, shares for a capital increase. Each shareholder receives the rights for each share previously held. These titles, in some circumstances may be traded on the Stock Exchange

Support.In the stock context, a price at which an asset is quoted that result in such demand that it may break or even reverse the downward trend that existed up to that moment.

Suspension of trading.Lapse when securities are not traded in either all stock exchanges or just in one. It can also refer to a single value when untested circumstances concur that may profoundly affect their quotes. Its duration runs until the correction of the irregularity that caused it.

Systematic Risk.Risk linked to the market as a set that depends on factors other than the market’s own values such as the general economic or industry situation, level of savings, interest rate, inflation, political, social and electoral aspects, and investors’ psychological behavior. This type of risk is also called non-diversifiable risk because it cannot be removed with a diversification of investment.

Technical Analysis.It is the name applied to a set of techniques that try to predict stock prices from their historical dimension, taking into account the behavior of certain quantities such as stock trading volume, contributions from recent sessions, changes in price during longer periods, capitalization, etc.. Technical analysis relies on the construction of graphs showing the historical evolution of stock prices, but also in analytical techniques that can predict stock market fluctuations. It is also called chartist analysis or graph, although technical analysis is broader because it now incorporates mathematical models and econometric statistics going beyond pure graph theory.

Technical Drop.Technical dip is a fall in the prices of a security as a short term dip during a long term rally. This descent is due to purely internal motivations of the market such as profit-taking sales or short sell positions, etc.

Theoretical value of Subscription Right.It is theoretically the value of a subscription right, it is obtained by dividing the value of the last quote of share, less the nominal value, by the number of rights required to subscribe a share plus one unit, where VT = Theoretical value of subscription rights; C '= last quote of the share with right; NV = nominal value of the stock; r = ratio of right.

Titularization.Operation in which the entity transform a non negotiable asset, usually a loan, into a security able to be negotiable in the secondary market and, therefore, can be purchased directly by investors.

To future.Refers to securities, it means a sales contract in which, even though its price is agreed at the time of delivery of the securities, it is not carried out until a later, prior agreed date.

Tobin's Q.The economist James Tobin proposed this indicator in 1969. It is calculated by dividing the market value of the assets of the company by the estimated replacement cost. The market value of assets is made up by: the market value of the shares plus all debt securities issued by the company. The denominator of this ratio, which is the estimated replacement cost includes all assets of the company calculated at replacement value.

Total Risk.The overall risk of a title is constituted by the sum of non-diversifiable systematic risk and diversifiable risk.

Trading sessions or SIBE sessions.This refers to meetings held at the Stock Exchange by members pursuant to the provisions of article 1 of the Regulations of Stock Exchange SIBE.

Transaction deadline with benefit- F.L.T.B. .Deadline set by the issuing entity to determine the correspondence of the respective benefit. A profit is understood as any "Cash Dividend", "Dividend in Shares" or "Subscription Rights" issued by the issuing company. At the end of the FLTB procedures are taken for "Adjustment of Stock Price" in the stock market.

Unsecured.Unsecured credit has no specific guarantees that support its recovery, but it is guaranteed only by the debtor's assets.

Update.Calculation procedure to obtain on the current date, financial equivalence in terms of interest rates, discount, inflation, depreciation, etc.., of a value or series of securities with future maturities. It consist at present assessment of future cash flows containing a value.

Usufruct of Shares.It is a right inherent on stocks and allows the beneficial owner to obtain the benefits derived from ownership of shares, dividends and other rights of economic content.

Valorization of the stock.It is the difference between the selling and buying price of a stock, that is, the increase of its commercial value during the time of its possession.

Value.Price of a good and is defined in market exchanges, according to the marginal utility for those demanding it and profit maximization to those offering it.

Value of Issuance.Total authorized amount of the securities to be offered in the market. The number of securities is multiplied by the subscription price.

Value of the Investment Unit (VUI).Is the price or value of the stock from a mutual fund. This is calculated daily by dividing the net asset by the number of outstanding shares.

Variable Income Securities.Stocks are generally named as such because the dividend income that is distributed to holders is dependent on the results or circumstances of the issuing company and therefore can not be determined in advance at the close of the fiscal year.

Variable Income Securities or Equities.Stocks are generally named as such because the dividend income that is distributed to holders is dependent on the results or circumstances of the issuing company and therefore can not be determined in advance at the close of the fiscal year.

Volatility.Correlation between changes in the prices of a security and those from the general stock market index. It is a statistical concept that allows assessing the exposure of a security to price fluctuations greater to those from the rest of the market. A high volatility indicates a greater risk with regard to the total market. Volatility is measured by the variance of a series of historical quotes, noting the standard deviation regarding the market index of a given sector of values. To analyze this volatility the beta coefficient is commonly used.

Wheel out loud.Brokers' meeting at a marked hall, suitable for conducting negotiations for buying and selling dollars at a free and open market. Its duration is determined by the regulations of the respective institution. At the Caracas Stock Exchange wheels out loud were performed daily until February 1992.

Zero Coupon Bonds.Bearer securities issued by the Central Bank of Venezuela, with the aim of regulating the excess liquidity in the money market. These are non-interest bearing bonds, the yield is obtained by placing them at a discount. This instrument of monetary policy was replaced by Titles of Monetary Stabilization, which in turn were issued between June 1995 and October 1999. Currently, the Central Bank of Venezuela, specifically from the month of May 2001 has introduced the use of REPO in order to contribute to the implementation of monetary policy, reducing the liquidity levels.