A safe place?

A stock market is a place where you can buy and sell certain goods, services, or assets. These do not have to be shares of companies, as there are also commodity, service or financial services exchanges. Investors can buy and sell assets such as:

• company shares,
• state bonds,
• corporate bonds,
• investment fund participation units,
• ETF participation units,
• other financial instruments, including derivatives such as futures.

The most common risks associated with the stock market are:

• market risk,
• liquidity risk,
• operational risk,
• unsystematic risk,
• counterparty risk,
• inflation risk,
• currency risk,
• legislative risk,
• price risk,
• interest rate risk.

In order to mitigate these risks as much as possible, you should first of all gather knowledge about investing, assess whether it is worth investing in a given asset and spend small amounts on it at the beginning. Then you will be able to take better care of your safety on the exchange.

Investment proposals – treasury bonds

Bonds are one of the most popular securities. They are a security of a creditor nature, which states that the issuer of the bond, i.e. the entity issuing the bond, has incurred a debt. The issuer must return the entire amount borrowed on the maturity date and pay interest to the bondholder.

Unlike shares, bonds are not shareholding, so their holder is not a co-owner, has no influence on the current operations and goals that the bond issuer wants to pursue in the future. Treasury bonds are the most popular type of bonds, and their issuer and guarantor is the state. An individual investor can redeem them in two ways: they can be bonds issued by banks or listed on the Catalyst market, purchased through brokerage accounts.

Investment proposals - commercial bonds

Commercial (corporate) bonds are debt securities issued by companies that allow you to raise capital for the development of the company. Investors receive interest for the funds they put in on a certain date. Compared to Treasury bonds, corporate bonds typically offer higher interest rates, but they also come with a higher risk. This is because a company may go bankrupt with a higher probability than the state, so investors expect additional profit.

Investment proposals – investment funds

An investment fund is a form of collective investment that is based on the investment of its participants' funds by a specialized financial institution. After making payments, they are converted into participation units, expressing the investors' share in the fund's assets. It is worth visiting Webinar Universe and choosing one of the training courses dedicated to these issues.

These include open-end investment funds (FIO), specialized open-end funds (SFIO) and closed-end funds (FIZ). One of the very important aspects of choosing an investment fund is the correct analysis of past performance. It cannot be the only determinant of success, but a comparison of the rates of return generated by the funds in different periods gives a broad picture of their stability.

Investment proposals - equity crowdfunding

Equity crowdfunding is a rapidly growing form of financing innovative projects and startups. In exchange for financial support, the investor receives shares in the company, most often shares. The fundraiser takes place on an online crowdfunding platform. A low entry threshold is characteristic of such investments, so anyone who believes in the project can support the creators in its implementation.

An entrepreneur who decides on equity crowdfunding should have a clearly defined issue goal for which he will raise funds, a specific amount that will ensure its implementation, and the percentage of shares that he intends to give back to investors.

Investment proposals – company shares

In a nutshell, a share is a security that represents ownership in a given company. Each person who comes into possession of shares becomes a co-owner in the company. Investing in shares is one of the most popular forms of investing money.

It is then necessary to open an investment account, i.e. to maintain a brokerage account. You need to carefully check the conditions that a given company offers, including transaction costs and commissions charged by the broker.

Investment Proposals - Investment Certificates & ETFs

An investment certificate is a security issued only by closed-ended, specialized closed-end or mixed investment funds. Their number is always fixed and can only change in the case of a new issue. Certificates issued by closed-end funds are always bearer securities, have a dematerialized form, are indivisible, represent the same property rights and are obligatorily introduced to public trading.

An ETF is an investment fund whose certificates are listed on the stock exchange, just like stocks. It can track the movements of stock indices - stocks, bonds, commodities or cryptocurrencies. They allow you to diversify your investment portfolio, which we often talk about in our online trainings.

Investment proposals – derivatives

Derivatives are a special type of financial instruments that are recommended rather to people with more experience. These are financial instruments listed on stock exchanges, the value of which depends on the value of the underlying instruments. The underlying instrument can be, for example, a share, bond, ETF, stock index, interest rate, exchange rate or inflation rate. Derivatives are financial instruments, but they are not securities. They are a kind of agreement between investors, they are property rights. They are used for three primary purposes, which include: hedging against risk, speculation, and arbitrage.

The world of investment offers a wide range of opportunities that can be tailored to different financial goals, risk levels, and investor preferences. Starting from potentially safe, through riskier but potentially more profitable, to modern investments. Each option has its own unique advantages and disadvantages. It is crucial that each investor carefully considers their goals, the time horizon of the investment, and the level of acceptable risk.