Stocks

Compact knowledge at a glance

Stocks

Compact knowledge at a glance

Investing in stocks involves purchasing ownership in a company, typically in the form of a share of its capital stock. This investment strategy is suitable for medium to long-term investment and has the potential for higher returns compared to conventional investment methods. However, with these higher returns comes higher risk.

Investing in stocks

As a stockholder, you become a co-owner of the corporation and are entitled to a portion of the profits if the company performs well. However, if the company's market value decreases, the value of your shares will also decrease. The capital provided by shareholders is used by the company to achieve its economic goals and is considered part of the company's equity.

The price of a share is determined by the stock exchange's supply and demand, and represents the current market valuation of the company, also known as market capitalization. The profit or loss on a stock investment is closely linked to the market value, economic performance, and company prospects. Investing in a single stock can be risky, so an alternative is to invest in the        s Aktien Plan or equity funds, which allows you to spread your risk by investing in numerous companies simultaneously.

Shareholders may also participate in the decisions of the corporation at the annual general meeting. As co-owners, they can vote on important issues and receive a profit distribution, known as a dividend, if the company is successful. The dividend amount depends on the company's financial situation and may be omitted entirely. Shareholders can buy or sell their shares on the stock exchange.

Product features at a glance

  • Wide range of shares from different sectors and regions
  • Prospect of regular dividends
  • Chance to earn high yields
  • Purchase and sale possible at any time with George
  • The price of shares can fluctuate significantly
  • Dividends may not be paid
  • Capital loss (up to total loss) is possible
  • Exchange rate risk with shares in foreign currencies

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