it now!

Abbreviation of American Depositary Receipts. Stocks of companies from other parts of the world, issued and negotiated in the USA, backed by securities of the company circulating in its home country.

Situation in which an investor converts a stock owned in Chile or elsewhere in the world into an ADR. There is a conversion cost which depends on the ADR in question.

The objective of this type of fund management is to outperform the agreed benchmark. The investment portfolio, therefore, will not necessarily mirror the composition of the benchmark index.

An index that measures the volatility of a givenstock price.Calculatingthe Alpha index is an attempt to isolate the specific listed-price variation of a given stock from the variation of the security market it belongs to. A high alpha coefficient is a sign that the stockperforms well, regardless of what happens in the market in general.

This is the Stock Exchange with the third-highest trading volume in the U.S.It was acquired by the NYSE Euronext in 2008 and became the NYSE Amex Equities in 2009. It is located in downtown Manhattan and trades nearly 10% of all securities traded in the USA.

An operation by means of which it is possible to obtain profit, taking advantage of distortions in prices, without having to carry out a fundamental analysis.

Any of a company's goods and rights, including balances in banks, financial investments, product inventories, payments receivable from clients, vehicles, buildings, machinery, brand, etc.

Agreement between the Administrator representing the Fund and the respective Authorized Agent, establishing the terms and conditions for the creation and redemption of the Creation Units of the Fund.

Investors in conformity with the objective criteria established in the Bylawsof the It Now IPSAETFwho may create or redeem instrument shares.

Each Stock Broker that has executed an Authorized Agent Agreement and is duly authorized to create and redeem shares of this Fund.

Description of a company's equity situation, including all its assets, securities, rights, debts and other obligations. It is disclosed once a year.

The file determining the identification and the corresponding number of Index Stocks, Amounts in Cash, and other financial instruments permitted by the Fund, composing the Instrument Portfolio, as calculated by the Administrator and disclosed on a daily basis on its website (http://www.itau.cl/itnow) and on the Santiago Stock Exchange website (http://www.bolsadesantiago.com) (from now on called “Stock Exchange”) before the opening of the Stock Exchange trading session.

A market in decline or generally pessimistic.

A parameter used for comparison purposes to measure the performance of a stock, asset, or investment fund. The benchmark of a fund dedicated to domestic stocks, for example, could be the IPSA index.

Beta is an index that measures the percentage variation of an asset price in response to the percentage variation of an index or a benchmark portfolio. In the case of the Santiago Stock Exchange:the IPSA index: if a stock behaves exactly like the index, we say that the stock’sbeta=1 (beta equals one); if the stock price varies more than the index but in the same direction, we say the stock has a beta>1 (beta greater than one); and if the stock varies less than the index but in the same direction, the stock has a beta<1 (beta less than one).

A term used in the U.S. market to refer to large and traditional companies. Blue chips are stocks that enjoy high liquidity in the market and are well appreciated by investors.

A stockbroker is a regulated professional individualwho works as an intermediary between buyers and sellers of shares and other securities, generally in exchange for a commission.

An institution responsible for buying and selling stocks, actingas a “bridge” between an investor and the stock exchange.

Abbreviation for Contraparte Central de Liquidación de Valores(Central Counterparty for Settlement of Securities): agency in charge of clearing and settlement services, operating as a Central Counterparty for the equity and derivativesmarket, and as a Clearing House for the stock markets of fixed-income securities, financial intermediation and simultaneous operations.

Abbreviation of Consumer Price Index.The U.S. price index, published monthly, measuring the prices of goods bought by consumers. It is equivalent to the Chilean CPI, which is calculated on a monthly basis by the Instituto Nacional de Estadísticas (INE) [National Institute of Statistics].

This happens when investors converttheir ADRs into shares in Chile.

An increase in the company’s capital with the proceeds obtained from the issuance of new shares in the market.

The bank is an autonomous agency with constitutional status responsible for ensuring currency stability and the normal functioning of domestic and foreign payments. For this purpose, the Central Bank of Chile is empowered to regulate the supply of money and credit in circulation and international credit and foreign exchange operations. The Central Bank of Chile is also empowered to issue regulations governing monetary, credit, financial, and foreign exchange matters.

A set of internal institutional procedures and policies aiming to set up a barrier to communication between different individuals or sectors of a single company, so as to assure compliance with current legislation on the segregation of the administration of third-party resources from the other activities of the institution.

Where the operations of the security markets are physically liquidated, in other words, where the custody and current accounts of sellers and purchasers of stocks are debited or credited.

Term signifying the products that make up the essential raw materials for the economy, such as metals, energy, food products, grains and livestock, with an international benchmark price.

A type of stock that gives its owner the right to vote in the company's stockholder meetings.

Adherence to a set of rules, instructions for internal control, and certificates of quality and professional ethics for banking and fund management activities.

A term used in the financial market to refer to interest that is added not only to the initial amountbut also to the interest accruing to the principal.

Comparison ofhow two different variables vary in time. A high degree of correlation between two variables shows that they tend to varyin similar fashion.

Pre-fixed rate paid periodically (at intervals of months or years) to those who hold certain types of securities.

Order issued by an Authorized Agent at the request of an Authorized Shareholder or submitted by the Shareholder directly to the Administrator, requesting the Fund to issue one or more Units in exchange for the delivery of one or more Instrument Portfolios.

The service of holding assets provided by an authorized institution. The custodian institution is responsible for informing itsclientswhat their positions are by sending custody balances on a daily basis. Asset yields, such as dividends and bonuses, must also be distributed and disclosedto clients by sending account statements.

Abbreviation forDepósito Central de Valores (Central Securities Depository), an organization whose mission is to provide companies trading in the domestic and international capital market with security custody, management, clearance and settlement services, in compliance with high security, transparency, efficiency and quality standards.

A trade that is executed and liquidated on the same day.

A decrease in the general level of prices of goods and services in an economy.The opposite of inflation.

A decrease in the value of an asset owing to usage, the action of time, technological obsolescence, or a reduction in the market price.

A financial instrument deriving from another asset to be settled at some future date.Its value and trading characteristics are linked to a predefined asset. This operation does not have to be settled financially at the closure of the trading session. Settlement is based on the price difference at a future date.

A loss of asset value. A term commonly used in the currency market.

The disclosure by a company of information that enables investors to make knowledgeable decisions.

When the price paid for asecurity (bond, stock or asset) is lower than its face value, listed price or benchmark price. It is the difference between the actual reduced purchasing price and the face value of a security.

An indicator created to measure the profitability of a company comparing its dividends withthe price of its stocks. It is a ratio of the dividend per share divided by the price per share. It can be used to estimate the expected profitability of a stock.

The profits of a companydistributed to its stockholders. In Chile, by law, the minimum fraction of the total net profit to be distributed in a financial year is 30%.

This index is representative of the American stock market. It is a price-weighted stock market index that considers the average stock quotations of the 30 most important companies in the stock exchange, 20 most outstanding railway companies and 15 largest utilities – representing the profitability of the most widely traded stocks on the NYSE (New York Stock Exchange) on a daily basis.

Weighted average of blue chips issued by 30 industrial companies.

A term used by specialists while analyzing the potential risk of a share or commodity, in other words, when the price of security will likely fall and how much it mightfall.

Measurement of the average period of time over which a security holder will receive the total payment.

Abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization, in other words the net profit of a company before deducting interest, depreciation due to the aging of its facilities, taxes and amortization of debts. In the opinion of many analysts, the EBITDA is the most reliable parameter for assessing the worth of a company, since it only takes into account revenues and expenditures.

Abbreviation for Exchange-Traded Funds.It can be described as a hybrid between a stock and a mutual fund because it has features of both. As mutual funds are, ETFs are made up of a diversified instrument portfolio. However, they are just like stocks operationally because they are traded in the stock exchange during the entire trading session.
ETFstrack the main market indexes and can be purchased and sold by a stock broker during the entire trading session. The objective of the ETF Administrator is to deliver returns equal tothe return of the index to investors.

Yield per share. To obtain this ratio,the profits of the company are divided by the number of outstandingshares. It is widely used as an indicator of the company’s profitability.

Expansion or contraction of the economic activity over a given period of time.

Sale of merchandise or services in other countries.

The percentage of any single asset value in the net equity of the fund. If an investment fund has a net equityof $100 million, for example, and has $15 million in stocks of company X, the fund’s exposure to company X is 15% ($15 million/$100 million).

The way in which financial resources are transferred between savers and investors.

Statements of the main accounts of a company, as reported on the balance sheet, income statement, statement of changes in financial position, changes in net equity and explanatory notes.

The set of measures brought in by the government to control its revenues and expenditures.

The 12-month period during which the financial budget of a company must be executed. At the end of the fiscal year, a balance sheet must be prepared to describe the activities of the company.

A contract signed by two parties, in which one of them commits to buy and the other to sell a given asset for a given price, at a given date. The contract is usually between two financial institutions and is not normally traded on stock exchanges.

A type of detailed analysis performed to support the decision to buy or sell a stock, based on the characteristics and prospectsof the market in which the company issuing the security operates.

Obtaining resources from third parties for a specific purpose.

Abbreviation ofGross Domestic Product. It is the sum of all goods and services produced in a country inone year.

An instrument that aims at protecting financial operations against the risk of large price variations in a given asset. A hedging strategy consists of making a given investmentwith the specific objective of reducing or eliminating the risk of another investment or operation.

A holding company is a company whose main activity is to hold shares in other companies.

Initial Public Offering. This is when a company sells stocks issued by itself to the marketfor the first time. The issuing prices of stocks are very low but rise quickly throughout the first day of the IPO.

Índice de PreciosSelectivo de Acciones(Stock Selective Price Index) of the Santiago Stock Exchange.

The exact basket of instruments and Amount in Cash a Shareholder must invest to acquire Units (creation Instrument Portfolio) or that the Shareholder will receive in case of redeeming Units (redemption Instrument Portfolio), in conformity withthe Bylaws of the Fund. The Instrument Portfolio will be made up of Index stocks, Amounts in Cash and other financial instruments, pursuant to the investment policy of the Fund. The composition of the Fund portfolio will follow the rules set forth in Title F of the Fund’sBylaws.

Any kind of capital expenditure made to obtain a higher value than that of the expenditure in the future.

Equity integrated by pooling resources of individuals and companies to invest in securities and assets permitted by law, managed by a publicly held company at the risk of the investors. The investments are expressed in non-redeemable shares. The investment funds and the companies managing them are supervised by the Securities and Insurance Exchange Supervising Authority and are governed by the provisions laid down by law and its bylaws and by the legal standards and regulations that apply to publicly held companies, as well as pursuant to the terms set forth in the bylaws of each fund.

The time horizon needed to obtain a better financial return. When purchasing stocks, for example, analysts recommend having a long-term investment horizon.

A group of assets that belongs to an investor, either an individual or a legal entity. These assets may be stocks, funds, public bonds, debentures, real estate investments, and so on.

This is the transfer of custody of stocks from the owner to a lessee in exchange for a fee and margin deposits. The Lessee will get the return of the stock during the period of lease, while the lessorwill receive the interest rate (on the margin deposits).

Leverage is the use of third-party resources to increase the potential profitability of a company or operation in the financial market, consequently elevating the level of risk in the company’s operation.

This is the balance-sheet item, for people or corporations, showing their entire debt, in other words, the sum owed to thirdparties, in the form of the book value of the equity of the company's owners.

The position taken by investors when they are betting on a price increase of a given asset.

An expression used to refer to a long period of time, but without a specific duration.

Investors use this totell the stock broker the quantity and characteristics of the securities they want to buy or sell.

Market value (or Market Cap) is a company's value on the stock exchange, in other words, how much an investor would spend to buy all the company's shares at the current market quotation. To obtain this value, the number of each asset type of the company is multiplied by its respective quotation.

A stockholder that does not hold control of the company.

The set of mechanisms used by the Central Bank to control the money supply in a country, of which the major instrument is the interest rate.

A credit security issued by a bank and backed by mortgages granted by the institution. In general, a mortgage note pays a benchmark rate plus an interest rate, which may be negotiated depending on investment time and volume. The advantage of these notes is that they are exempted from any income tax.

A Mutual Fund is created by pooling resources of various shareholders and investing the total equity of the fund in a diversified instrument portfolio. The type and diversity of the instruments invested in by the fund are establishedby the investment policy defined in the bylaws of each fund, which is a public document registered in the Securities and Insurance Exchange Supervising Authority that the shareholder should be familiar with while investing in the fund.
These savings and investment instruments make it possible to access various global markets, different economic sectors, currencies, countries and regions. Mutual funds allow shareholders to take advantage of investment opportunities that would unlikely be available by investing individually.

Stock exchange of the United States, set up in 1971 and trading over five thousand securities of American companies, exclusively from the technology, IT and internet industries.

The difference between a country's exports and imports.

Stock exchange located at 11 Wall Street, New York. The oldest (founded in 1792) and largest stock exchange in the U.S.It is run by a management board, presidedover by a chairman and made up of 20 other people who represent the public at large and the members of the stock exchange.

The term used by the Central Bank of Chile to refer to the average of all the exchange rates reached in the operations of the previous business day between banks and companies, which is publishedby the Central Bank of Chile.

The right to purchase or sell a given asset until a predefined date, at a pre-established price. The purchasers of the option may exercise their right or not by the final deadline. The only disbursement to purchase the option is the premium, which is usually low compared with the price of the asset. There are options for a wide range of assets, such as stocks, currencies, interests and even Brady bonds (trading securities).

The market in which stocks and other securities are traded over the phone or using a computer network, rather than in a Stock-Exchange trading session.

Under this management model, fund resources are invested to achieve the same return as the benchmark. Therefore, the investment portfolio should try to mirror the composition of the benchmark index.

The set of shares, securities and contracts that make up an investment fund, and the percentage of each of these assets in the total equity of the fund.It may also be called investment portfolio.

A type of stock that gives its owner preference in receiving dividends to be distributed by the company's controller.

When the price paid for a security or asset is higher than its market value. The difference between the two values is called the premium.

Price over Net Equity. This indicator represents the equity value per share and is calculated dividing the company's market value by its net equity, or the quotation of the share by itsbook value (BV). A P/BV ratio of 80% indicates that the company is worth 80% of the value of its net equity; a company with a P/BV ratio of 140% has a market value 40% higher than its net equity. Smaller P/BVs indicate companies with depreciated quotations.

The result obtained by dividing the market value of a company by its net profit. It shows the number of years a company would take to generate net profits worth as much as investors would pay for their stocks, if the company were to maintain its present profitability.

A company that does not trade securities in the equity market.

The price variation, in percentage terms, of any asset, such as an investment fund, a security or a stock.

A company that can issue stocks and marketable securities on the market. A company may be publicly held and yet not be listed on the Stock Exchange.

Institutional investors, banks, insurance companies, security brokers, fund administrators, stock brokers, security dealers and financial institutions.
Qualified investors also include:
Individuals, companies and entities, Chilean or foreign, having financial investments worth not less than 20,000 UF (Unidad de Fomento, a Chilean unit of account) that may be offered publicly in Chile or abroad.
Individuals, companies and entities, Chilean or foreign, having financial investments worth more than 4,000 UF that may be offered publicly in Chile or abroad and that comply with certain requirements established by the Securities and Insurance Exchange Supervising Authority.
Qualified investors may operate in specially established markets and offerings and issuances targeted at them.

The established price atwhich assets are traded on the market.

Abbreviation of Reunión de Política Monetaria (Monetary Policy Meeting) of the Central Bank of Chile, in which the level of the interest rate is defined to guide the course of the economy.

An agency that specializes in rating the quality and risk of different investment securities.

Order issued by an Authorized Agent by request of an Authorized Shareholder or submitted by the Shareholder directly to the Administrator,requesting the Fund to deliver one or more Instrument Portfolios in exchange for the delivery of one or more Units.

Situation in which the company's controller buys back stocks from minority stockholders. Repurchasing usually occurs above the market-traded price of the stock (premium), producing gains for minority stockholders.

When a security issued by an institution matures, the institution may pay the holders of the security by issuing another security with the same characteristics but with a new maturity date.

An index on the American stock exchange representing the 500 largest companies in the United States, calculated by financial-services provider and ratings agency, Standard & Poor’s.

Abbreviation of Superintendencia de Valores y Seguros (the Securities and Insurance Exchange Supervising Authority), an autonomous Institution with legal status and its own net equity, that works with the Chile Government through the Ministry of Finance. The objective of the SVS is to further supervise the activities and entities that trade in the securities and insurance markets of Chile.

The major Stock Exchange in Chile, in which markets trade stocks, fixed-income instruments, financial intermediation, futures, and investment fund shares, among other securities.

A Federal Agency set up in 1934 by the American Congress to regulate the stock market and securities industry.

Stock.Security that gives the right to a fraction of the equity of a company.

The price of a unit of the fund. To invest in a mutual or investment fund, fund shares must be purchased. The share price will vary according to the appreciation or depreciation of the bonds and securities of the fund. By multiplying the number of shares by the share price, investors may calculate the present value of their initial investment.

The index used by financial market professionals tocalculate the correlation between the risk and profitability of a given investment. This index assesses if the rate of return of the portfolio is consistent with its riskor if the risk is too high. The higher the rate of return and the lower the risk, the higher the Sharpe index will be.

The position taken by investors when they are betting on the decline ofan asset price.

An expression used to define a brief period of time, without anyspecificduration.

Term used in the financial market to refer to interest that is added only to the initial amountof a loan or investment.

A short-term bet aiming to obtain profits on the financial market.

When the company subdivides its stocks in order to increase its liquidity. Stockholders then hold more stocks, but at lower value.

The difference between the prices quoted for an immediate sale (offer) and an immediate purchase (bid) of an asset. Therefore, the spread may be considered the profit of a financial transaction. In credit operations, the spread is the difference between the rate paid by the bank for deposits and the rate it charges to clients for loans.

A type of security that signifies ownership in a corporation and represents the smallest unit of the capital of the company issuing the stocks. When an investor buys stocks in a company, he becomes a co-owner of that company and is called a stockholder. There are two basic types of stocks: common or preferred.

A right granted by the company to its stockholders to purchase new stocks to increase capital, at determined prices and terms (when a company wants to increase its capital, it allows its stockholders to purchase new stock).

A term used in the market to designate an exchange operation. It is an exchange of rates that occurs when two market agents hold securities that yield different rates of return, and both want the financial value of their security to yield the rate of the other agent's security. They, therefore, sign a contract with a defined maturity date, by which the security of one agent will yield the rate of return of the security of the other agent, and vice-versa.

This measure is the standard deviation of the daily differences between the return of Fund shares and that of the Index.

Session where registered securities are traded on a stock exchange or commodities exchange, directly in the trading room and/or by the electronic trading system of the Santiago Stock Exchange.

Minimum amount of Fund shares set and disclosed by the Administrator that the Authorized Shareholder may create or redeem using instruments, pursuant to the terms of a Creation Order or a Redemption Order of shares, duly submitted by an Authorized Agent or submitted directly to the Administrator, in the terms set forth in the Bylaws. The Unit set for creating shares may differ from the one defined to settle redemptions.

The fluctuation of an asset. If the price of an asset fluctuates widely, with abrupt variations in a short period of time, the asset is said to be highly volatile. It is expressed as a percentage.

The name of the financial district in New York where the United States Stock Exchange, the New York Stock Exchange and a large number of stock brokers operate.

Yield per share is the result of dividing the company's profits by the number of stocks. It is commonly used as an indicator of the profitability of a company.