Shares
Shares mean equity securities. Upon buying shares you become a co-owner of the company and acquire property (e.g. to receive dividends) and non-property (e.g. voting at general shareholder meeting) rights. According to the rights they grant shares are divided into ordinary and preference shares.
Why are investments in shares attractive?
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During the period of economic growth investments in shares can yield much higher earnings than investments in bonds or investment funds;
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Shares grant the right to vote at the general shareholder meeting and therefore, as a company shareholder, you can participate in the company’s management ;
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In the event of successful performance of the company, as its shareholder, you will be able to receive dividends if the company decides to pay them;
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By giving the shares owned as collateral you can conclude a repurchase transaction (REPO) and take out a short-term loan.
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What rights are conferred by ordinary and preference shares?
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Upon buying ordinary shares you will acquire the right to participate in company's management by voting at the general shareholder meeting and the right to receive dividends in the event the company operates with profits and takes a decision on paying dividends to its shareholders.
Upon buying preference shares you will have the right to receive fixed-rate dividends which are paid earlier than dividends on the ordinary shares.
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What are the risks of investment in shares?
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Investment in shares entails a risk of losing part or all of the funds. Most frequently losses are sustained due to reduced share value when the company’s operation is unsuccessful or company’s performance does not meet investor expectations. In the event of company’s bankruptcy the shareholders may lose all their investments. A decrease in share value may also result from an aggravated economic situation in the country in which the company operates or from changed tendencies on the share market. You can also incur losses due to insufficient liquidity of the shares as trading on a non-liquid market may result in additional costs. More information on share related risks is available here.
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What shares are offered by Ūkio bankas?
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Upon entering into the Agreement on the Provision of Investment Services you will be able to on Baltic stock exchanges online. Upon coming to the Bank’s Branch or Client Service Unit providing investment services you will be able to submit orders regarding the shares of Lithuanian and more than 30 foreign issuers.
