Glossary

Account Holder Clients Transaction: Securities transaction conducted by Securities Company for the insterest of its clients in accordance with the contract between Securities Company and the clients, which is made in accordance with paragraph 5 of Regulation No. V.D.3. and paragraph 4 of Regulation No. V.D.6.
Acquisition: A merger of two business entities by acquiring most of the other entities??? shares. In an acquisition, the two or more business entities are still legally existed and the entity holding the majority of the shares will be the parent company required to present a consolidated financial report. So principally, shares or asset from a company can be bought or taken over by other parties, companies or individually. (see also merger and consolidation)
Affiliation: Family relationship by marriage and descent to the second degree, horizontally or vertically. Relationship between a person and its employees, directors or commissioners. Relationship between a company and a person that directly or indirectly controls the company or controlled by the company. Relationship between a company and substantial shareholders.
Agio: Value added to capital resulting from the difference between selling price subtracted by par value of a shares issuance from portfolio and recorded in the account, which is also called AGIO.
Allotment: Allocation of the offered shares to its subscribers in the primary market if the number of shares subscribed exceeds the number of offered shares.
Allotment: An approved amount that can be allocated for each shares subscription form submitted by investors due to oversubscription the offered shares in the Primary Market resulting in all investors not receiving the full amount of their demands.
American Depository Receipt: Receipt for shares from a foreign companies listed in a stock exchange in the United States of America. For example, an investor from USA who purchases Telkom's shares will receive an ADR as opposed to the usual Telkom's shares in Indonesia. Basically, it aims to provide convenience to investors in that country. ADR is an abbreviation for American Depository Shares.
Annual Report: An official report on a listed company???s financial condition over a one year period. Several things are included in this report, such as Company???s Balance Sheet, Profit/Loss and Balance Sheet Cash Flow. This report must be reported to shareholders to be approved in the General Meeting of Shareholders (GMS) before being ratified as company???s official annual report.
Asset Backed Securities: Collective Investment Scheme Unit which portfolio consists of receivables from commercial securities, lease, conditional sale and purchase agreement, installment loan agreement, credit card bill, lending including mortgages or apartment, debt securities guaranteed by government, Credit Enhancement/cash flow, and equivalent financial asset. Thus, the Asset Backed Securities are not Mutual Funds as referred in the Article 1 number 27 of Capital Market Law No. 8 Year 1997.
Asset Backed Securities: Collective Investment Scheme Unit whose portfolio consists of receivables from commercial securities, lease, conditional sale and purchase agreement, installment loan agreement, credit card bill, lending including mortgages or apartment, debt securities guaranteed by government, Credit Enhancement/cash flow, and equivalent financial asset.
Audit Committee: A Committee established by the Board of Commissioners of the Listed Company which members are appointed and dismissed by the Board of Commissioners of the Listed Company to assist the BOC of Listed Company to perform examination or investigation that is considered necessary to the implementation of the functions of board of directors in managing the Listed Company.
Audited Financial Statements: Audited financial statements with accompanying audit opinion and is signed by a public accountant registered at Bapepam.
Auto Rejection: Automatic rejection by JATS for selling offer and/or purchase demand of securities which is inputted to JATS that exceeds the price limitation stipulated by the Stock Exchange.