Stock Investments

Stocks (also known as shares) represent ownership in a company’s equity. By owning stock, investors gain certain rights, including voting on key decisions, receiving dividends, and exercising other statutory rights.

Buying stock means purchasing a portion of a business. This typically involves more risk than investing in bonds, as stock values are directly influenced by the company’s performance and management decisions. However, stocks also offer higher potential returns, making them attractive to investors who are willing to accept greater risk.

When you buy stock in the company:

• You acquire partial ownership of the company and the right to receive the company's profits in the form of dividends
• You may obtain voting rights, allowing you to participate in company decision-making;

Investing in the stock of a promising company may generate positive returns over time.

Companies may issue different types and classes of stock, which determine the rights attached to the investment.

The main types of Stock

• Preferred stock generally does not grant voting rights at shareholders’ meetings but may provide higher or fixed dividends.
• Common stock represents the main type of stock issued by a company. It typically provides voting rights and the possibility of receiving dividends, if declared

Classes of the Stock

Stock may be divided into different classes of shares (e.g., Class A, Class B), which grant different rights.  For example, holders of Class A shares may have more voting rights than holders of Class B shares.

When assessing stock investments, it is important to distinguish between value and price:

• Stock value reflects the company’s underlying worth, based on its assets, liabilities, and expected future performance.
• Stock price is the amount at which the stock is bought or sold in the market and is influenced by investor expectations, market conditions, and economic trends.

Therefore, the value estimated by analysts may differ from the market price.

Before investing, you should determine how much money you are willing to invest based on your financial goals and resources.

It is also important to consider all applicable fees and charges, including those applied by Artea bankas.

Investing in stock involves risk.

Liquidity risk is an important factor. Liquidity refers to how easily stock can be converted into cash without significant loss. If liquidity is low, buying or selling stock may take longer and result in less favorable prices.

Investors should also regularly monitor their investments and ensure access to relevant information, such as stock prices, company performance, and financial results.

Stock investments carry a high level of risk. If a company becomes insolvent, investors may lose their entire investment. However, there is also potential for significant returns through Dividends and Capital growth (increase in stock price).

Key risks include: market risk, liquidity risk, capital loss risk, currency risk, credit risk, timing risk, legal and regulatory risk.

1. First of all, you have to sign a contract for the provision of investment services and open a securities account in any unit of Artea bankas.
2. Submit order to buy or sell shares:
   • By logging into securities trading platform: it is convenient to monitor and manage your securities portfolio;
   • Through financial brokers of Artea bankas.

The most convenient way is to fill this request form, and the required specialist will contact you.

For more information about these investment instruments, conditions and fees call +370 610 44447.

The information contained herein is only a presentational marketing message. It cannot be regarded as an offer to buy any financial instruments, to sell them and/or to conclude the transaction (s).

Please note that investing involves certain risks, so before making an investment decision, you have to take into account that, under certain circumstances, which are independent of will and action of Artea bankas AB, your investment value may drop. Artea bankas AB is not responsible for your decisions taken on the basis of the information contained herein.