ABAMEC – Associação Brasileira dos Analistas do Mercado de Capitais (Brazilian Association of Capital Market Analysts). Founded in 1970, ABAMEC is a non-profit, civil association that brings together capital market analysts and related groups. The association fosters social and cultural activities aimed to further the integration, education, and specialization of members.

ABRADEE – Associação Brasileira de Distribuidores de Energia Elétrica (Brazilian Association of Electrical Energy Distributors).

ABRASCA – Associação Brasileira de Companhias Abertas (Brazilian Association of Publicly Held Corporations). Founded in September 1971, ABRASCA is a nationwide, non-profit, civil entity, whose legal status is distinct from that of its members: legally registered and publicly held corporations.

American Depositary Receipt – Receipt, issued and traded in the USA, backed by shares of companies in other countries.

ANEEL – Agência Nacional de Energia Elétrica (National Agency of Electrical Energy). Autarchy set up under a special regime to regulate and inspect the production, transmission, distribution, and sale of electrical power. ANEEL’s function is to ensure the quality of services provided, the equal treatment of users, and the reasonableness of tariffs charged, while preserving the economic and financial viability of the industry.

ASMAE – Administradora de Serviços do Mercado Atacadista de Energia Elétrica (Administrator of the Wholesale Electrical Energy Market). A private company that acts as the Administrative Agent of Market Services and provides administrative, technical, and legal services within the scope of MAE.

Average Price – Average price of a share recorded during a stock exchange’s trading day.


Benefits – Dividends, bonus issues, and subscription rights that a company distributes to its shareholders.

Bonus Issue – Shares distributed to shareholders at no cost as a result of a capital increase arising from the incorporation of reserves or profits.

BOVESPA – Bolsa de Valores de São Paulo (São Paulo Stock Exchange).


Capital Increase – Incorporation of new funds or reserves into a company’s capital.

Closing Price – Last price of a share recorded at the end of a stock exchange’s trading day.

CNPE – Conselho Nacional de Política Energética (National Council for Energy Policy). Body that advises the President of Republic regarding the formulation of energy polices and guidelines designed to ensure that national energy resources are used in Brazil in accordance with relevant legislation.

Consumer Council – Set up by holders of public service concessions to distribute electrical power, the function of the Council is to orient, analyze, and evaluate matters associated with supply, tariffs, and the adequacy of service provided to end consumers. Council members are representatives of residential, commercial, industrial, rural, public- sector and, optionally, other users.

Comissão de Valores Mobiliários (CVM) – (Securities Commission). Federal body that oversees and inspects the stock market by issuing appropriate norms and regulations.

Common Stock (ON) – Shares that give the holder the right to vote at Shareholders’ Meetings.

Custodian Bank – Institution within Brazil authorized by Comissão de Valores Mobiliários (Securities Commission), to provide custodian services specifically associated with the issue of American Depositary Receipts.


Debenture – Security representing a loan contracted by a publicly held corporation, via a public or private offering, that is guaranteed by the assets of the company, and whose redemption has priority over almost all other debts.

Depositary Bank – Also known as the Issuer Bank. In the USA, this institution issues the corresponding American Depositary Receipts based upon the securities in custody inside Brazil.

Dividend – Cash distributed to shareholders in proportion to the quantity of shares possessed that arise from profits generated by a company during a particular period. Corporate Law indicates that the company must distribute a minimum dividend equal to 25% of the net profit verified during each accounting year.


Earnings per Share – A company’s net profit in a particular period divided by the total number of outstanding shares.

Extraordinary General Meeting (AGE) – Meeting of company shareholders of an extraordinary nature, where matters not considered in the Ordinary General Meeting are resolved. A number of meetings of this type may be convened during one year.


Fiscal Council – Monitors the financial position of a company and the actions of its directors, verifying the fulfillment of their legal and statutory obligations. The Council is made up of a minimum of three, and a maximum of five effective members and substitute members who are not linked to the company.

Free Consumers – Consumers who, in line with Law 9074 of July 1995, and ANEEL’s Resolution 264 of August 13, 1998, may opt to purchase electrical power from any distributor or seller, freely negotiating the price and duration of the supply, in accordance with legislation and specific regulations.



Holding Company – Company whose principal activity is its participation via shareholdings in one or more other companies.


IBOVESPA – Indicator of the average return of a theoretical portfolio constituted by the most representatively traded shares on the São Paulo Stock Exchange. The Ibovespa index is revised every 4 months, and serves as an indicator of market behavior. Its composition approximates, to as much an extent as possible, the real configuration of operations realized on the Bovespa spot market.

IEX – Index of Electrical Energy – Sector index measuring the return of shares of generating and distribution companies and of electrical power holding companies.

IBRI Instituto Brasileiro de Relações com Investidores (Brazilian Institute of Relations with Investors). Founded in1997, the IBRI is an association of professionals directly or indirectly linked to Investor Relations activities, whose interests cover finance, marketing, and communication between companies and shareholders, as well as market analysts, institutional investors, other market participants, and members of Brazilian and international financial communities.

IBX Brazil Index – Price index measuring the return of a theoretical portfolio made up of 100 shares selected from BOVESPA’s most traded stocks.

Installed Capacity – The potential production of a particular economic sector. If an industry is working at 79.04% of its capacity, it has 20.96% of idle capacity.

Interest on Own Capital – A way of distributing results to shareholders, instituted by Law 9249/95, which allows a company to include, as part of the value of dividends due to shareholders, interest, denominated the return on own capital, paid or credited. The interest provides a fiscal benefit, as it is deducted when a company’s taxable profit is calculated.





MAE – Mercado Atacadista de Energia (Wholesale Energy Market). The function of the market is to establish an environment for all electrical power transactions between producers, distributors, and major consumers.

Majority Shareholder – Shareholder possessing a controlling amount of shares in a corporation.

Maximum Price – Maximum price of a share recorded during a stock exchange’s trading day.

Minimum Price – Minimum price of a share recorded during a stock exchange’s trading day.

Mixed Economy Company – Company controlled by Municipalities, States, or the Union. Such companies require legislative authorization for their constitution and operation.

MME – Ministério de Minas e Energia (Ministry of Mines and Energy).

MRE – Mecanismo de Realocação de Energia (Energy Relocation Mechanism). Mechanism directed at achieving full utilization of national production capacity that involves energy transfer between generators.


Net Asset Value or Book Value of Share – Stockholders’ Equity shown on the balance sheet divided by the total number of outstanding shares.

NYSE – New York Stock Exchange.


ONS – Operador Nacional de Sistemas Elétricos (National Operator of Electrical Systems). A private company authorized to coordinate and control generating and transmission operations within interconnected electrical power systems

Opening Price – Initial price of a share recorded at the beginning of a stock exchange’s trading day.

Ordinary General Meeting (AGO) – Meeting of company shareholders that must, obligatorily, be convened during the first four months following the end of the accounting year. At the meeting, shareholders examine, discuss, and vote on financial statements, deliberate over the destination of the year’s net profit and the distribution of dividends, and, when necessary, elect directors and members of the Fiscal Council.


PCH – Pequena Central Hidrelétrica (Small Hydroelectric Power Station). Hydroelectric power station whose capacity does not exceed 30 MW.

Preferred Stock (PN) – Shares that give the holder priority in receiving dividends, and, in the event of the company’s closing, in receiving reimbursement of capital. These shares do not confer the right to vote at Shareholders’ Meetings.

Publicly Held Company – A company whose capital is divided into shares. The responsibility of the partners or shareholders is limited to the issue price of the shares subscribed or otherwise acquired.

Publicly Quoted or Open Capital Company – Company whose shares are registered with the Comissão de Valores Mobiliários (CVM), and can be traded on the Stock Exchange or in the over-the-counter market.


Quotation – Price of securities, shares, foreign currency, or commodities.



SEC – (Security and Exchange Commission). The U.S. federal agency authorized to issue capital market regulations and oversee fulfillment of the provisions established by the laws governing the USA’s capital markets. The SEC issues regulations regarding the publishing of information about securities offered for public sale, and is responsible for organizing the sale of these same securities.

Share – Security representing part of the capital of a company or publicly held corporation.

Shareholder – Person or company possessing shares in a publicly held corporation.

Share listed on the stock exchange – Share traded on the stock exchange.

Stock Exchange – Non-profit, civil association through which securities are traded. The entity’s principal objectives are: to maintain a location or electronic trading system adequate for the buying and selling of securities; to ensure that trading is carried out in accordance with high ethical standards; and to divulge prompt, detailed information on operations realized.

Subscription – The operation by which a company offers new shares on the market in order to obtain investment funds.








Last Update April 6, 2020