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
They do not guarantee a fixed return, it depends on the performance of the issuing company and 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 participation in the company or voting rights. They represent a loan to the issuer.
They are not subject to any time limit, each person decides how long he/she wants to keep the instrument, depending on the 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 products.