Introduction > Stocks and trading > Derivatives > Investment Certificates

Investment Certificates

Investment certificates are financial instruments whereby the price of the certificate depends on the development in the price of the underlying asset. From a legal perspective, investment certificates are debt issues that are not connected to any right to any dividends, company management or share in the remaining assets following liquidation of a company as opposed to common stock. Follow certificate prices on the PSE online at www.akcie.cz.

Investment certificates are issued by large banking houses, and is more likely to occur abroad. An important role in this case is played by the creditworthiness or rating of the banking institution that issues these certificates. The issuer is also a specialist that is continuously present on the exchange for bids and offers to ensure sufficient liquidity. Interested parties in the exchange can buy (debt subscription) or sell these investment certificates at any time (until the maturity date). The issuer is obliged to purchase them back and at the same time has the right to use the funds invested by the investor.

The underlying asset can include stock indexes, shares, commodities, currencies and more. The price of an investment certificate is derived from its underlying asset.