Individual Clients Trading in Shares and ETFs

DSK Bank AD offers to its clients mediation in trading in shares, rights and compensatory instruments on the Bulgarian Stock Exchange – Sofia AD, participation in primary and secondary offers, trading offers and securities safekeeping.

DSK Bank AD offers to its clients intermediation in trading in shares and separately traded funds on the international markets in Europe, North America, Asia, Latin America, Africa and Australia. DSK Bank AD keeps foreign financial instruments in Clearstream. The Bank issues execution orders to the following counterparties: Canaccord Genuity Ltd., OTP Bank Nyrt. and Citigroup Global Markets Ltd.

Our clients can invest their free funds in shares of leading domestic and international companies in order to achieve higher returns.

The commissions and fees that the Bank applies are one of the most attractive on the market.

Exchange traded funds (ETF) are funds which purpose is to replicate the structure and movement of an index of stocks, bonds, exchange traded goods or a basket of assets.

Features of Exchange traded funds:

Replicate the structure and movement of an index;
Unlike mutual funds, exchange traded funds are traded as shares;
Exchange traded funds are generally more liquid than individual securities/assets in the index;
Save transaction costs for structuring such a portfolio;
Have significantly lower management costs than mutual funds;
Exchange traded funds do not guarantee accurate follow-up of the index, but the fund's management aims to achieve the closest possible result;
Enable investors to gain exposure, for example to different companies and commodities, by providing a relatively high degree of diversification.

Target market of the product

The shares and Exchange Traded Funds are financial instruments - products, which the Bank distributes. The table below sets out the criteria for determining for which client profile the products are compatible with or not.

	Positive	Negative
Type of clients	all types of clients: retail, professional and eligible counterparties
Clients’ knowledge and experience	- knowledge of capital markets and experience related to financial instruments trading. Knowledge about the movement and formation of the share and Exchange Traded fund prices; - understanding the risks associated with investing in shares and Exchange Traded funds; - knowledge about the issuer; - knowledge about the sector that the Exchange Traded fund tracks and its development trends; - understanding the process for concluding transactions in financial instruments	does not meet the indicated knowledge and experience requirements
Clients’ financial situation with a focus on the ability to bear losses	able to afford a loss up to 100% due to share and Exchange Traded fund price change during the investment
Clients’ risk tolerance and compatibility of the risk	high-risk profile, given the volatility of stocks and Exchange Traded funds and the possibility of losing the investment	is reluctant to bear the risks associated with an investment in shares and Exchange Traded funds
Clients’ objectives and needs	demand for higher returns compared to investment in fixed income instruments as a result of an increase in the price of purchased shares and Exchange Traded funds and the dividend yield

What are exchange traded funds suitable for:

For structuring geographical exposures - BRICS countries (Brazil, Russia, India, China, South Africa), Asia, Latin America, etc. For structuring exposure to a specific sector – industry, technology, consumer goods, etc.;
For structuring exposure to exchange traded goods - oil, gold, gas, etc.;
For structuring macro strategies based on the change of fundamental factors – interest rates, profitability, volatility, economic growth.

Risk – investments in exchange traded funds are exposed to market risk or risk of negative change in the price of the fund due to economic or investment-specific factors.