What you get when you invest

• Ownership: Equity investments provide investors with ownership stakes in a company, giving them a share in the company's assets and profits.
• Risk and return: Equity investments are considered to have higher risk than other types of investments but, at the same time, have the potential for higher returns.
• Voting rights: Equity investors may have the right to vote on important company decisions, such as electing board members, approving mergers or acquisitions, and issuing new shares.
• Capital gains: Equity investors may benefit from capital gains, which occur when the value of their shares increases over time.
• Dividends: Equity investors may receive dividends, which are payments made by the company to its shareholders.
• Dilution: Equity investors may experience dilution, which occurs when the company issues new shares, reducing their percentage of ownership.
• Long-term horizon: Equity investments are often viewed as long-term investments, as it can take time for these companies to grow to a point where they can pay back their investors.

• Fixed income: Debt investments provide investors with a fixed rate of return in the form of interest payments. These interest payments can also be variable, usually in the form of a spread over a base rate, like Euribor.
• Lower risk: They are typically considered as having a lower risk than equity investments, as debt investors have a priority claim on the company’s assets and cash flows compared to equityholders.
• Maturity: Debt investments usually have a fixed maturity date, after which the principal amount is repaid to the investor.
• Risk of default: Debt investments carry the risk of default, which occurs when the company cannot repay the principal or interest payments to its investors.
• Limited influence: Debt investors have limited influence over the company’s operations and decision-making, as they do not have equity ownership or voting rights.

Convertible securities combine equity and debt investment features, as they offer a fixed income until converted into common shares, which can provide the potential for capital appreciation.

• Equity and Debt: Convertible securities have equity and debt investment characteristics, as they can be converted into common stock at a future date.
• Conversion rate: Convertible shares have a conversion rate, specifying the number of shares the investor will receive upon conversion.
• Fixed income: Convertible products often offer a fixed rate of return as dividends (preferred stock) or interest payments (bond) until they are converted into common stock.
• Upside potential: They can offer investors the potential to participate in the upside of a company’s growth while still receiving a fixed rate of return.
• Risk and return: The risk and return profile of convertible securities depends on the specific terms of the investment, including, among others, the conversion rate, dividend rate, and maturity date.
• Flexibility: Convertible shares offer flexibility to both the company and the investor, as they can provide a bridge between equity and debt financing and can be structured in various ways to meet the needs of both parties.