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Organisations and the financial system
Organisations and the financial system

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P

Premium

The difference between the price paid by a shareholder for a share and the share's nominal value, that is, the excess above the nominal value.


Privatisation

Privatisation is the process of transferring the ownership of a company or industry from the public to the private sector.


Prospectus

A prospectus is a formal document that details a financial security, such as stocks and bonds, intended for public offering. The aim of the prospectus is to help investors make more informed investment decisions.


R

Rate of interest

The cost of borrowing money over a period of time.


S

Start-up company

A start-up company, often simply referred to a 'start-up', is a company in the early stages of its operations. The classification is mainly used to identify companies operating in innovative sectors characterised by high growth potential, but also high risk.



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