Information

Investor glossary

Explanations of more than 50 securities market terms used on the site and in the Investor Account: OVDP, coupon, yield to maturity, spread, repo, ISIN, taxes and more.

Bonds

Accrued interest
The part of the next coupon accrued since the last payment date. When a bond is bought between payment dates, the buyer compensates the seller for accrued interest in the price.
Bond
A debt security: the issuer borrows money from the investor and undertakes to repay the face value at maturity and, as a rule, to pay coupons. Learn more →
Corporate bond
A debt security issued by a company. The issuer undertakes to pay coupons and repay the face value at maturity; the state does not guarantee these obligations. Learn more →
Coupon
A periodic interest payment on a bond. Most OVDP pay coupons twice a year. Learn more →
Debt restructuring
A change in debt terms agreed with creditors: maturities, coupons or face value. The restructuring of Ukraine’s OZDP was completed on 30 August 2024. Learn more →
Default
An issuer’s failure to meet its bond obligations — not paying a coupon or the face value on time.
Discount bond
A bond without coupons: it is bought below face value, and the investor’s income is the difference between the purchase price and the face value paid at maturity.
Duration
The weighted average time until all payments on a bond are received. The longer the duration, the more the bond price changes when market rates change.
Face value
The amount the issuer repays to the bondholder at maturity. Most hryvnia OVDP have a face value of UAH 1,000.
FX-denominated OVDP
OVDP denominated in US dollars or euros: the face value and coupons are paid in the currency of the issue. Learn more →
Issuer
An organization that issues securities: the state (for OVDP, the Ministry of Finance of Ukraine), a company or a bank.
Maturity
The date when the issuer pays the bondholder the face value and the last coupon. After that, the bond ceases to circulate.
Military bonds
OVDP placed by the Ministry of Finance to finance defense needs. They can be bought in the Investor Account or in the Diia app. Learn more →
Ministry of Finance auction
The primary placement of OVDP: the Ministry of Finance sells new bond issues to market participants through brokers. The auction schedule is in the events calendar. Learn more →
NBU key policy rate
The main interest rate of the National Bank of Ukraine. Deposit rates and OVDP yields depend on it; the dates of rate decisions are in the events calendar. Learn more →
OVDP
Domestic government bonds issued by the Ministry of Finance of Ukraine. Individuals’ income from OVDP is exempt from personal income tax and the military levy. Learn more →
OZDP (Eurobonds)
Ukraine’s external government bonds denominated in foreign currency. Through BTC Broker they can be bought and sold for hryvnia. Learn more →
Primary market
The placement of new securities by the issuer among investors. For OVDP, these are the Ministry of Finance auctions. Learn more →
Repo
A sale of securities with a simultaneous obligation to buy them back on a set date at a set price. In effect, placing or raising funds against securities as collateral. Learn more →
Secondary market
The buying and selling of already issued securities between investors — on an exchange, over the counter or in the Investor Account. Learn more →
Yield to maturity
The annual return on a bond bought at the current price and held to maturity, taking into account coupons and the difference between the purchase price and the face value. Learn more →

Stocks and funds

AMC
An asset management company — a licensed company that manages the assets of investment funds. Learn more →
Collective investment institution (CII)
An investment fund that pools investors’ money and invests it in assets, for example a unit or corporate investment fund. Learn more →
Dividends
Part of a joint-stock company’s profit paid to shareholders. For foreign stocks, BTC Broker as the tax agent credits dividends net of personal income tax and the military levy. Learn more →
Exchange-traded fund (ETF)
An investment fund whose shares trade on an exchange like ordinary stocks. Most ETFs track a stock index, a sector or a commodity. Learn more →
Investment certificate
A security of a unit investment fund that certifies the investor’s share in the fund. Learn more →
Market capitalization
The value of all of a company’s shares at the market price: the price of one share multiplied by the number of shares outstanding.
PrJSC
A private joint-stock company — a form of joint-stock company without a public offering of shares. BTC Broker carries out deals in PrJSC shares for individuals and legal entities. Learn more →
Stock (share)
A security that represents an ownership stake in a joint-stock company. It gives the right to part of the profit (dividends), a say in management and part of the assets if the company is liquidated. Learn more →
Stock index
A measure of the change in value of a basket of securities, such as the S&P 500 or NASDAQ-100. Many exchange-traded funds track indices. Learn more →
Ticker
A short exchange symbol of a security, for example AAPL for Apple stock. Learn more →

Market and participants

Broker
A licensed investment firm that executes securities transactions on behalf and in the interests of a client. Learn more →
Clearing and settlement
Determining the parties’ obligations under a trade and fulfilling them — the transfer of securities and money. Clearing of exchange trades in Ukraine is carried out by the Settlement Center.
Dealer
A market participant that buys and sells securities in its own name and for its own account.
ISIN
A 12-character international securities identification number. The first two letters are the country code: UA for Ukrainian securities, US for US securities.
Liquidity
The ability to buy or sell a security quickly at a price close to the market price. The higher the liquidity, the smaller the spread usually is.
Market maker
A market participant that continuously quotes buy and sell prices for a security and supports its liquidity. BTC Broker acts as a market maker in the Investor Account order book for “Penny Spread” issues. Learn more →
NSSMC
The National Securities and Stock Market Commission — Ukraine’s state capital markets regulator that licenses professional market participants. Learn more →
NSSMC license
A permit from the National Securities and Stock Market Commission for professional activity on capital markets: brokerage, dealer, depository and other activities. Learn more →
Order
An investor’s instruction to buy or sell a security at a specified price and quantity.
Over-the-counter market
Securities transactions concluded outside an exchange — directly between the parties or through brokers.
PFTS
A Ukrainian stock exchange (First Stock Trading System). Government and corporate bonds and shares of Ukrainian companies trade on it. Learn more →
Quote
The prices at which market participants are ready to buy or sell a security. In the Investor Account — the buy and sell prices for each issue. Learn more →
Spread
The difference between the buy price and the sell price of a security. The smaller it is, the less an investor loses when selling before maturity. Learn more →
Stock exchange
An organized market where participants trade securities under set rules, for example PFTS. Learn more →

Accounts, documents and taxes

Brokerage account
An investor’s cash account for settling trades: it is topped up by IBAN, used to pay for securities, and credited with sale proceeds, coupons and dividends. Learn more →
Depository institution
A professional market participant that opens and maintains clients’ securities accounts and records rights to securities. Learn more →
Diia.Sharing
A Diia app service for sharing copies of documents with companies. It lets clients open an account with BTC Broker remotely. Learn more →
Investor Account
BTC Broker’s web application for buying and selling securities online: quotes, orders, the securities account and reports. Learn more →
Military levy
A levy on individuals’ income — 5% (since 1 December 2024). Income from OVDP is exempt from it. Learn more →
Personal income tax
Personal income tax — 18%. Individuals’ income from OVDP is exempt from it, while deposit interest is taxed. Learn more →
QES
A qualified electronic signature. Legal entities use it to access the Investor Account and sign documents. Learn more →
Securities account
An account with a depository institution that records the owner’s rights to securities. Learn more →
Tax agent
A party that calculates, withholds and pays tax to the budget on the taxpayer’s behalf. BTC Broker is the tax agent for dividends on foreign securities. Learn more →