Trading with Securities

• Related Products

Characteristics of Trading with shares:

Share

• a security which is linked to the right of the shareholder as a partner to participate in management of a company, its profit and the liquidation balance in the event of expiry of the company

C-client

• buys and sells securities traded on the Prague Stock Exchange or on international markets
• submits trading instructions by telephone directly to the salesman, from whom he/she can gain up-to-date information about the situation on the pertinent market before submitting a binding instruction
• can determine the limit price subject to which the transaction is to take place
• is informed by e-mail or in the agreed manner of each transaction concluded
• receives a statement from his/her portfolio account once per month with a detailed description of the status of funds and securities; the statement also includes a summary of all movements which have occurred in sub-accounts for securities and money
• does not pay KB any fee for submission of instructions for purchase or sale of shares and for management of the portfolio
• pays the bank a fee for management of securities in his/her portfolio
• in terms of management, Komerční banka ensures crediting of dividends to the c-client's portfolio account and other capital operations free of charge
• dividends paid out in a foreign currency are also credited to the portfolio account in foreign currency

Risks

There are a number of risks tied to trading on the capital markets that can jeopardise the investment:

• company risk:
  • the buyer becomes a co-owner of the company; participates in its development and in its profits and losses
  • all risks are usually projected into the market value and this is why income from such an investment is difficult to predict
  • in an extreme case, the company could go bankrupt and the buyer lose his/her whole investment
• price risk:
  • prices of shares may undergo unpredictable development causing a risk of loss
  • the price increases and decreases in medium-term and long-term cycles with no possibility of determining the length of these cycles
  • general market risk, relating to market moods, political situation in the world or the situation on the financial markets
  • this risk must be differentiated from the specific risk relating only to a single company
  • both risks, jointly or separately, affect share prices
• risk of dividend payout:
  • the dividend for a share depends especially on the revenues of the issuing company and on its dividend policy and development plan
  • in the event of low profits, dividend incomes may be decreased or need not be paid out at all
• currency risk:
  • investment into foreign currency shares is also related to a currency risk
  • the investment may show a loss in the CZK equivalent despite a growth in the market prices of shares

Benefits of trading with shares on the PSE:

• A client can submit trading instructions in a simple manner.
• Komerční banka does not charge any fees for submitting an instruction to buy or sell shares or for maintaining a portfolio account.
• If a client pays more than CZK 10,000 for bank commission in the current year, Komerční banka will manage his/her portfolio free of charge.
• Dividends paid out in foreign currency are credited to the client in foreign currency as well.
• At KB, you get a strong partner that has a team of traders available.

Trading with shares on the PSE allows you to:

• appreciate your available funds advantageously on the Prague Stock Exchange
• enjoy high returns in case of favourable developments on the market

How to obtain information about trading with shares?

• contact your relationship manager
• call the toll-free KB Info line at 800 521 521

Related Products

• Trading with Debentures
• Warrant Trading
• Trading on the Capital Markets
• Individual Asset Management
• Custody