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Securities Investment

Securities Investment

Asset Management Service

In the scope of the portfolio management activity, every client should be aware that the setting of investment objectives associated to the management of their portfolio must be carefully weighed, assessing all the advantages and disadvantages of the portfolio composition limits to be defined, their adequacy to the financial capacity and to the risk tolerance of each client as well as to the risk inherent to the portfolios arising from the nature of the securities (stock, bonds, warrants, certificates, units, etc.), from price volatility, market liquidity, securities issuer’s financial capacity and solvability and from the type of market where securities are negotiated.

Particularly, every client should be aware that in case their portfolios may involve investment techniques that imply the usage of derived financial instruments (futures and options contracts, Forex forwards, spot and CFDs), such instruments afford a leveraged investment, and, consequently, a small variation in the price of underlying assets may result in significant profits or losses.

Furthermore, derived financial instruments are also subject to liquidity and market risks, under given conditions – namely in situations of greater volatility – may render impossible the closure of open positions or that such closure be only possible in less favourable conditions. Also, Golden Assets will inform every client that, in case his/her portfolios can include hedge fund investments, the latter use financial instruments that may increase losses of the investment, even in situations of market growth, and that the clients have no guarantee of capital preservation or profitability of their investment. As far as unregulated hedge funds are concerned, the investment in such type of financial instruments involves less investor protection, namely the absence of prudential supervision and potential risk monitoring, which, in case of adverse market evolution, may result in losses for the investor and for the markets in general.

Financial Advising Service.

In the scope of the consulting activity, investment decisions constitute a duty of the clients, and therefore they should duly weigh all advice and information supplied by Golden Assets ou Golden Broker, bearing in mind their financial situation, their risk tolerance and their investment objectives. Every client should also, to that purpose, weigh the risks associated to the investments, to the operations and to the securities advised.

Brokerage Service

In the scope of the brokerage services, the decisions of investment in securities and other financial instruments are taken by the clients, reason why they must be aware that Golden Broker will not be responsible for the losses that for themselves can result from the adverse evolution of prices.

With this in mind, customers should bear in mind that the decision to invest in securities and other financial instruments has a direct effect on their assets, requiring both ongoing monitoring and knowledge of the functioning of markets and securities therein. are traded.

As such, before deciding to invest their savings in securities they must evaluate their knowledge and their availability of time. If they are considered to be insufficient, investors should choose to leave this task to specialists.

Investment in securities should be carefully thought out, and their decisions should be duly weighed, conveniently assessing the advantages and disadvantages of investing in certain securities. For this purpose, customers should collect and analyze all relevant information, in particular that relating to issuers, the main characteristics of the securities and the markets available to invest, paying attention to the respective advantages and disadvantages. Before making any investment decisions, customers must set a profitability objective and a threshold of loss for a certain period of time.

The setting of objectives is important for the periodic revaluation of the investment made. Investment options should be appropriate to the financial capacity and risk appetite of clients. Clients should be aware that in order to avoid being exposed to the uncertain return of a single financial asset it is advisable to apply their savings to various financial assets. Diversification implies a lower risk. Each investment carries a risk associated with it.

By diversifying their investments, the risks can be mutually compensated and the portfolio or group of instruments tends to have a less fluctuating income. In view of the way in which markets, securities and financial instruments are traded, the investment must be carried out on a regular basis. There will be times when opportunities may be seized and others where the market will not be especially attractive for investments.

Investment in securities can provide gains and losses, and the inherent risk of such investment is linked to a number of factors that must be duly considered when making a decision to invest: for example, the nature of the securities (stocks, bonds, warrants, certificates, units, etc.), the volatility of their prices, the market liquidity, financial capacity and solvency of the issuer of the securities, the type of markets where the securities are traded.

if you intend to invest in futures or derivative financial instruments - such as futures, options, CFDs and Forex - you must bear in mind when making a decision that they are constructed on another asset - the underlying asset- which may be notional or real securities - indices, interest rates, currencies or other assets - provide a leveraged investment - since the initial investment - margins and premiums - is less than the value of the instrument that it intends negotiate - and may have a purely financial settlement or involve a delivery of the underlying asset if it holds open positions on the maturity / contract date. Particular attention should be paid to the risks associated with investing in forward and derivative financial instruments and the variables that influence their price, such as maturity, the volatility of the underlying asset, the price of the underlying asset at any time and , in the case of options contracts, their exercise price, as well as macroeconomic variables such as interest rates.

Derivative financial instruments are in particular subject to liquidity and market risks, which may result in certain situations - particularly in situations of increased volatility - not being able to close open positions or less favorable conditions, which increase the risk of losses associated with investing in these instruments. In sum, customers should be aware that the performance of transactions in financial instruments of the futures market and derivatives implies a constant monitoring and control of their position and that these instruments carry a high risk if they are not managed correctly, a loss as a result of price changes.

Clients should also duly weigh the adequacy of such operations and instruments to their financial situation, investment profile and risk appetite.