Risk notice

Important

This information is neither investment advice nor an investment strategy or investment recommendation, but advertising. Investments in securities involve risks and, in addition to the returns, can lead to substantial losses of the capital invested. If the security is purchased in a currency other than the euro, additional exchange rate risks may arise.

Risk notice for stocks

Stocks are securities issued by companies to raise equity capital and which embody a share in the company. A shareholder is a co-owner of the company and shares in its economic success and failure – participating through profit distributions (dividends) and the price development of the stock.

There are different types of shares with different rights: ordinary shares (with voting rights), preference shares (without voting rights, but preferential treatment in distributions), bearer shares (easily transferable) and registered shares (entry in the share register required). Registered shares with restricted transferability require the company’s consent for transfer.

Shareholder rights include property rights (claim to dividends, subscription rights, bonus or correction shares) and administrative rights (participation in the general meeting, right to information, voting right).

Specific risks

Price risk: Stock prices are determined by supply and demand and cannot be systematically predicted. A negative price development can lead to the loss of the capital invested.

Insolvency risk: Since shareholders are only served after all other creditors in the event of insolvency, stocks are to be regarded as an asset class with relatively high risk.

Dividend risk: Future dividends cannot be predicted. With lower or absent profits, the dividend may be reduced or suspended.

Order placement risk: Buy or sell orders must clearly specify at least the investment, quantity, price and time frame. Incorrect orders can lead to losses.

Economic cycle risk: Fluctuations in general economic development can affect the value of issued securities.

Inflation risk: Devaluation of money can lead to a loss of assets – the real interest rate is decisive.

Credit risk: The risk that the economic situation of the issuer deteriorates and it can no longer meet its obligations.

Interest rate change risk: Rising interest rates can lead to declining stock prices, as future profits are discounted more heavily.

Information risk: Wrong decisions due to missing, incomplete or incorrect information.

Liquidity risk: If no tradable prices are available, the position may temporarily not be sold.

Psychology of market participants: In addition to objective factors, psychological factors play a role. Expectations of market participants can contribute to rising or falling prices or reinforce them.

Risk of loss and change of shareholder rights: Shareholder rights can be changed by corporate measures (mergers, spin-offs, changes of legal form). Majority shareholders can force the exit of minority shareholders within the framework of a “squeeze out”.

Risk of discontinuation of stock exchange listing: A revocation of the stock exchange admission (“delisting”) significantly impairs the liquidity of the investment without principally affecting shareholder rights.

We therefore point out that you should speak with your bank or your financial advisor before purchasing securities. The internet content has been carefully prepared to the best of our knowledge and belief. However, no guarantee can be given for the accuracy and completeness of the information. We or third parties assume no liability for the correctness, completeness and timeliness of the individual information.