Frequently Asked Questions

Investment Instruments

  1. Bonds

    A Bond is a debt security issued by the Greek State or banks which constitutes a form of public lending. The bond is a fixed-income security. At the issuance of the bond, its yield is known and is equal to the interest rate.

  2. Exchange Traded Funds

    The ETFs (Exchange Traded Funds) are mutual funds, the shares of which are traded in regulated markets (stock markets). In general, as investment products they are intended for the average investor, as they combine several advantages of both the mutual funds and the stocks.

  3. Stocks

    A Stock is one of equal shares to which the capital of a public company is divided. As a security, the stock bears the rights of the shareholder arising from his participation in the public company. These rights depend on the number of stocks held by the shareholder. Indicative rights that result from holding stocks is the percentage equal to the number of stocks held by the shareholder to the total number of company stocks, of the dividend on the distributed profits of the company, as well as the respective percentage of the company assets, in case of dissolution. It also bears the respective number of votes in the General Meeting of shareholders, unless the shareholder holds stocks without voting right.

    Stocks may be categorized into common stocks, preferred stocks and redeemed stocks, into registered and bearer stocks, into voting or non-voting stocks, into listed or non-listed stocks.

    The common stock is the most usual type of stock and includes all the basic rights of a shareholder, such as the right to participate in profits, in the issuance of new stocks, in the liquidation proceeds, as well as the right of vote at the General Meeting of the company and the right to participate in the company administration.

    The preferred stock simply offers a priority over the holders of common stocks as to the collection of the dividend and the collection of the liquidation proceeds in case of dissolution, but it usually does not include a right of vote and the right to participate in the company administration.

    It should be noted that after the simplification there are no stocks on paper for the companies listed in the Athens Stock Exchange. The stocks of the listed companies are intangible.

  4. Financial Instruments

    Financial instruments are the investment means in which someone may invest. Stocks, bonds, ETFS, convertible bonds, Treasury Bills of the Greek State, Bond Loans of firms / International Organisations / the Greek State and State Banks, Greek State Bonds.