Investment tools
Currency
Shares
Ordinary shares
Preference shares
Cumulative
Non-cumulative
the most common type 🔥
one vote for each share ✅
Redeemable
no liquidation preference 🚫
paid dividends after preference shareholders 🏁
proportionate ownership of a company 👥
Irredeemable
Non-convertible
Participating
Convertible
Non-participating
paid dividends before ordinary shareholders 🏁
no voting rights ⚠
liquidation preference ⭐
additional benefit of participating in profits 🍾
can be converted into an ordinary equity share
at some agreed terms
at some agreed conditions
dividendes
are accumulated
are paid before anything paid to equity shareholders
if company does not pay dividend in current year, claim of preference shareholder is lost to that extent
maturity date on which date the company will repay the capital amount to the preference shareholders
Advantages
Disadvantages
Dividends
High risk
Fluctuation in market price
Possible bankruptcy of the issuing company
Too many issuers (too hard to make a choice)
Opportunity to make money on the price difference
Part in the company
How to choose
Macroanalysis
Fundamental analysis
Cyclicity
Processability
Field of activity
Assessment of dividend stability
Market capitalization
Valuation of the company
Financial health
Company efficiency
DSI
Payout
indicator of stability of dividend payments
share of profit that the company directs to dividends
Market cap
capitalization of the company, this is the cost of one share multiplied by their number on the stock exchange.
P/E
P/B
ratio of the share price to the company's net profit per share
ratio of the company's value to its balance sheet
Debt/ Eq
Quick ratio
the ratio of borrowed funds to equity
term liquidity ratio
Net profit margin
ROE
net profitability, the ratio of net profit to revenue
return on equity
Exchange-traded funds
.
Features
Exchange-traded funds (ETFs) are a type of index funds that track a basket of securities.
ETF prices can trade at a premium or at a loss to the net asset value (NAV) of the fund.
ETFs are traded in the markets during regular hours just like stocks are.
ETFs do not involve actual ownership of securities.
ETF trading occurs in-kind, meaning they cannot be redeemed for cash.
Disadvantages
Actively managed ETFs have higher fees
Single-industry-focused ETFs limit diversification
Lack of liquidity hinders transactions
Advantages
Access to many stocks across various industries
Low expense ratios and fewer broker commissions
Risk management through diversification
ETFs exist that focus on targeted industries
Types
Passive and Active ETFs
Bond ETFs
Stock ETFs
Industry/Sector ETFs
Commodity ETFs
Currency ETFs
Inverse ETFs
Leveraged ETFs
Bond ETFs are used to provide regular income to investors. Their income distribution depends on the performance of underlying bonds.
Passive ETFs aim to replicate the performance of a broader index—either a diversified index. Actively managed ETFs typically do not target an index of securities.
Most common international currencies
euro
yuan
dollar
Stock (equity) ETFs comprise a basket of stocks to track a single industry or sector.
Advantages
Industry or sector ETFs are funds that focus on a specific sector or industry.
Commodity ETFs invest in commodities, including crude oil or gold.
Bonds
Currency ETFs are pooled investment vehicles that track the performance of currency pairs, consisting of domestic and foreign currencies
convenience
low risk of losing money in exchange operations
simplified investment
Disadvantages
Inverse ETFs attempt to earn gains from stock declines by shorting stocks.
Advantages
Disadvantages
A leveraged ETF seeks to return some multiples on the return of the underlying investments.
Exposure to crises
complicated regulation of prices of goods on markets in different countries
redistribution of production
How to Buy ETFs
types of currency
Find an Investing Platform
Research ETFs
Guaranteed income
Consider a Trading Strategy
Higher return compared to deposits
Opportunity to invest for any period
Online Brokers vs. Traditional Brokers
Accrual of interest income for each day of ownership
degree of currency stability
hard
soft
scope of application
payment price
When selling before maturity, accrued interest income is not lost
bills and cheques
bonds, stocks etc.
investments
What to Look for in an ETF
Subject to volatility
Risk of depreciation
Dependence on inflation and the Central Bank rate
Degree of global use
international
key
reserve
Volume
Expenses
dominating
Performance
Holdings
convertibility
Commissions
freely convertible
partially convertible
non-convertible
blocked
Types
By maturity
By type of issuer
By type of income
By denomination currency
State
Regional and municipal
Corporate
Short-term
Medium-term
Long-term
Coupon
Discount
Variable coupon
Ruble
Currency
What to look for when choosing bonds?
Current yield shows
Yield to maturity
The maturity date
Accumulated coupon
The coupon value
Nominal
Amortisation
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