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AGENT – Any person performing Pension Funds’ marketing activities and Membership Contracts conclusion.


AGENCY FOR SUPERVISION OF FULLY FUNDED PENSION INSURANCE – A State Agency supervising the operations of Companies and Pension Funds, and regulating the fully funded pension insurance.


SHARE – Any ownership security representing an indivisible and ideal part of the share equity of either a joint stock company or a limited partnership. Shares may be ordinary or preference shares.


STOCK BROKER – An intermediary executing orders to either buy or sell securities on behalf of clients or on his/her own behalf.


BROKERAGE FEE – The fee that a brokerage house charges its clients for any purchase and sale transaction executed.


SECOND PILLAR – The fully funded mandatory component of the three-pillar system that operates on the principle of asset capitalization, which means that the employee shall accumulate savings in advance of his/her retirement, on his/her own personal, i.e. individual account at a Pension Fund from the Second Pension Pillar, and then use such savings to finance part of his/her pension. Assets paid to the Fund shall be invested according to strict legal regulations in order to protect Fund Members’ assets.


GUARANTEE – A guarantee from the state (the State Budget of the RM) amounting to 80% of the loss of Mandatory Pension Funds’ assets incurred as a result of fraud, theft or embezzlement.


DIVERSIFICATION – An asset management technique ensuring a variety of portfolio financial instruments in order to spread risk.


VOLUNTARY MEMBER – All pension insured persons employed before 1 January 2003, who have signed a contract to join a Mandatory Fully Funded Pension Fund under the Second Pension Pillar.


VOLUNTARY INDIVIDUAL ACCOUNT – A personal account of a person who has acquired a membership status by signing an individual Membership Contract  in a selected Third Pillar Voluntary Pension Fund, where member’s own funds are collected and capitalized (the paid-up part of the voluntary pension contribution reduced by any fees and increased by the yield after investment.


LONG-TERM SECURITY – Any security with a maturity of one calendar year or longer starting from the date of its issuance.


MATURITY – The rest of the period within which any debt financing instrument shall be paid (executed).


TREASURY BILL – A short-term debt security issued by the Republic of Macedonia.


GOVERNMENT SECURITIES – Government securities (GSs) are risk-free securities which, on behalf of the Government of the Republic of Macedonia, are issued by the RM Ministry of Finance.


ISSUER – Any legal entity that develops, registers and sells financial instruments to finance its projects.


MANDATORY MEMBER – All insured persons who were first employed after 1 January 2003, and must be members of any Mandatory Fully Funded Pension Fund under the Second Pension Pillar.


LAW ON MANDATORY FULLY FUNDED PENSION INSURANCE – The Law on Mandatory Fully Funded Pension Insurance regulates the mandatory fully funded pension insurance and entities involved therein.


REPLACEMENT RATE – The ratio between the insured person’s pension and his/her salaries.


INVESTOR – Any natural or legal person owning any capital that is invested in capital market financial instruments.


INVESTMENT COMPANY – Any Asset Management Company, whose sole subject of operation is the establishment and management of Funds on its own behalf and on behalf of Open-end Funds’ share-owners in the name and on behalf of Closed-end Funds’ shareholders.


INVESTMENT PORTFOLIO – A group of financial instruments held by one investor.


INDIVIDUAL ACCOUNT – Any member’s personal account opened after joining the Second Pillar Mandatory Pension Fund selected, where member’s personal funds are collected and capitalized (the paid-in part of the contribution reduced by any fees and increased by the yield after investment).