What are Equity instuments?
Equities are financial assets representing ownership in a company or entity. Unlike fixed-income instruments, their returns and the repayment of invested capital are not guaranteed, as their performance is tied to the issuer's financial results and market evolution. .
Classification of Equities products
Local Stocks
They represents a portion of a company's capital stock. By acquiring a particular stock, investors become owners of a portion of the issuing company.
CEDEARs
These depositary receipts represent shares of foreign companies and are traded locally in Argentina, providing investors with a way to access international equities without the need for direct trading in overseas markets.
Differences with Fixed Income instruments
They do not guarantee a fixed return; instead, their returns depend on the performance of the issuing company and broader market conditions.
They guarantee fixed interest payments and the repayment of principal upon maturity, depending on the terms of the issue.
Increased risk associated with fluctuation of the asset's value.
They tend to be less risky instruments since the return is fixed and the principal is generally repaid at maturity.
Shareholders have voting rights in important company decisions.
They do not confer ownership or voting rights in the company. Instead, they represent a loan to the issuer.
Equities have no maturity date; investors determine their holding period based on investment objectives.
They are generally medium- or long-term instruments.
FINANCIAL INSTRUMENTS
Equity Instruments
See intruments available on BYMA
BYMAEDUCA
Equity and Derivative Products
In this workshop, specialists explain Equity instruments.