This type of translation requires expertise and experience in financial markets because there is a whole range of jargon, specific language, and terms that must be meticulously analyzed and translated accurately.
The translation of the financial statements, among other documents, including:
Offer to investors, after fulfilling the registration requirements of the Securities and Exchange Commission (SEC), the new securities, usually by an investment bank, a public offering price agreed between the issuer and investment banks. Public offerings are distinguished from a private placement of new securities, which are subject to different regulations of the SEC. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)
Formal written offer to sell securities that sets the plan of a commercial enterprise, or the facts about an existing one, the investor providing the information needed for decision making. Prospectuses are also published by mutual funds, describing the history, qualifications of directors, the fund’s objectives, financial statements and other essential data. A prospectus for a public offer must be filed with the Securities and Exchange Commission (SEC) and delivered to prospective purchasers of the offering. The prospectus contains financial information and a historical description of the company, its executives, operations, pending litigation (if any) and plans (including the use of proceeds from the issuance).
Before receiving a final copy of the prospectus, (statutory prospectus), investors can get a preliminary prospectus, commonly called red herring, because the warning in red ink on their status as provisional. This document is not complete in all details, although most of the main facts of the offer are usually included. The final prospectus is also called the offering circular.
The offerings of limited partnerships are also accompanied by a prospectus. Limited partnerships whose object are real estate, oil and gas, and equipment leasing and other types of limited partnerships are described in detail, and relevant information, the qualifications of the general partners and opinions for legal support are also addressed. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)
In systematic trading, more precisely in the context of commercial companies, is the contract, signed by the shareholders of a corporation on the sale of its shares, preference to acquire them, or exercise of voting rights. (Law 6.404/76, article 118).
Instrument of incorporating a company (Articles of Incorporation) (Castro, Marcílio Moreira de, 1981 – Dicionário de direito, economia e contabilidade).
Funds that invest in real estate projects (examples: commercial buildings, shopping malls, hospitals etc..). The return on invested capital is achieved through the distribution of earnings of the Fund (the rent paid for a shopping center, for example) or by the sale of their shares of the Fund. (http://www.bmfbovespa.com.br)
Contract entered into by a credit institution, banking house or another merchant to be used by the credited one or more times. The opening credits may be granted for the supply of goods or monies needed to fund a business. (Silva, De Plácido e, Vocabulário Jurídico, Rio de Janeiro, 2000, Ed. Forense)
Instruments that present key data that depict the performance of companies in different scenarios. The data is presented in a format to detail all activities within each institution. Management and Due Diligence Reports are a part of an efficient evaluation of the work done, as well as showing the planning strategies, labor policies and institutional indicators.
DOCUMENTS All documents and acts notarized and recorded in the leger of the notary or public office in accordance with applicable laws are considered Public Documents.
Public documents alone are considered authentic and full evidence when presented in original or certified copy, and when in copy, extracted or in published form, only if necessary, corrected in the presence of the interested parties themselves, this correction consisting of the original with the copy. (Silva, De Placido and Legal Vocabulary, Rio de Janeiro, 2000 Ed. Forense)
Comprises the distribution of any bonds, securities, or credits, which result from the intention to raise capital required for the establishment commercial or industrial businesses, for purposes of governing individual obligations.
In this way, issuance of securities covers the issue of shares, debentures, bonds, bills of exchange, or promissory notes, under which such securities are made and put into circulation.
In the bill of exchange, creation of draft shares also indicates the creation of checks and duplicate.
As for the promissory note, the technique, act of making it, as is known properly, issuance. (Silva, De Plácido e, Vocabulário Jurídico, Rio de Janeiro, 2000, Ed. Forense)
Debt security backed only by general credit of the borrower and documented by a contract is called an indenture. A bond debt without guaranty is a debenture. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)
Documents drawn up at the end of each fiscal year by the Board, based on the company’s bookkeeping and should clearly express the state of the company’s equity and the changes that occurred in that year. (Law 6.404/76, Section II, Article 176).
Annual report of the financial condition of a company, which must be distributed to shareholders in accordance with regulations of the Securities and Exchange Commission (SEC). Must include a description of the operations of the company, the balance sheet and income statements. The full annual report – called 10-K containing more detailed financial information, can be obtained upon request by the Secretary of the company. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)
SHEETS Financial reports, also called statements of financial position, showing the situation of assets, liabilities and equity on a specific date, usually at the close of a month. One way to analyze a company is to compare the mass of capital (assets) with the sources of capital (liability and equity). The asset is equal to liabilities amounting to equity and the balance sheet is the list of items that make up the two sides of the equation. Unlike a profit and loss (statement of profit and loss), which presents the results of operations during a certain period, the balance sheet shows the economic and financial situation of the company on a specific date. It is a snapshot, not a movie, and should be analyzed by comparison with other previous operating statements and balance sheets. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)
Statement signed by an independent auditor describing the scope of the inspection of the books and records of an organization. As financial reporting involves considerable degree of discretion, the auditors’ report provides greater security to creditors or investors. Depending on the extent of the audit and the auditor’s confidence in the veracity of the information, the opinion may be unrestricted or contain caveats. The opinions with caveats warrant closer examination. Also called auditor’s certificate. (Downes, John and Goodman, Jordan Eliott – Dictionary of Finance and Investment Terms – Nobel)