Shares – Explanatory Note

Concorde Investments Ireland Ltd (“CII”) is authorised to offer investment services in transferable securities. This permits CII to offer clients access to investment opportunities in its range of Shares.

Before entering into any transactions with us, we advise you to carefully read CII’s Risk Disclosure Statement which can be found on our website The Risk Disclosure Statement provides you with information that will allow you to understand the nature and risk of the investment service we are providing you with and of the specific type of financial instrument that is being offered thus allowing you to take investment decisions on an informed basis. You will also be provided with a copy of our Risk Disclosure Statement together with our Terms of Business at the outset of your relationship with CII.

Below is information on Shares which aims to help you understand the product. CII offers its investment services in certain Shares traded on various stock markets. We advise you to read this document before you consider investments in this type of financial instrument. If you have any questions on the content of this document or in relation to your investments you are asked to contact your investment advisor at CII.

Warning: The value of your investment may go down as well as up and you may get back less than you invest.

What are Shares? – Definition

A share is a unit of equity ownership of the issuing company. As a result shares (the terms stocks or equities are commonly used interchangeably with shares) represent a portion of the value of a company. When a company issues shares, it divides its share capital into equal units which are offered for investors to purchase. When you buy those shares you buy units of ownership in the company.

Owning Shares in a company entitles you to participate in the company’s residual profits if any are declared, in the form of dividends. Shareholders may also enjoy capital gains if the value of the company rises. However, they can lose money if the value of the company falls.

The denominated value of a share is its face value, and the total of the face value of the issued shares represent the total capital of a company. A company might have for example €100 million total capital divided into 100 million shares, each share representing €1 with a million shares equal to 1% ownership in the company. It is important to understand that the total capital in the example may not reflect the total market value of those shares. If the company is currently worth €300 million and it has issued 100 million shares as in the example, each share is currently worth €3. This valuation is assigned to the company by the Stock Exchange where shares are being traded and company valuations are generally determined.

Stock Exchanges – The venues where shares are being traded
A stock exchange is a marketplace where investors can buy and sell securities, bonds and other financial instruments. The stock exchange is a regulated marketplace for the trading of listed shares. To be able to trade a share on a certain stock exchange, the security must be listed there. Each exchange has its own regulations and requirements that a company must meet before its shares are listed. These requirements might include minimum requirements for measures like annual income, number of shares outstanding, audited accounts, etc. A share might also be listed on multiple exchanges. This is commonly known as dual or multiple listing. This is driven by the company’s decision issuing the shares. Most stock exchanges also have main and other markets too. The main market usually lists the larger instruments and is generally seen as a more liquid marketplace and also stricter regulations. The other market on the other hand promotes listing with lower cost and often lower market liquidity.

A primary market is where companies issue new shares on a stock exchange to investors; this normally happens through an initial public offering (IPO), where prospective investors can buy the shares. Once the initial sale is completed, further trading is conducted through the stock Exchange on what is referred to as the secondary market. Investors can buy or sell from or to other investors on the stock exchange without the involvement of the issuing company that issued and sold the shares the first time. The daily trading on the stock market determines the value of the entire company.

Where can I find information on the risks associated with shares?
There are risks involved in investments in Shares. Share prices and equity markets can be volatile. Please refer to our Risk Disclosure Statement for details on these risks which can be found on Alternatively, please contact your investment advisor if you have any questions on the content of this document or in relation to associated risks. The overall stock market may fall, or the Share that you invest in may underperform and can decrease in value in relative, but also in absolute terms. The value of your investment may go down as well as up. Past performance is no indication of future performance. This statement is also applicable to bond investments and includes investments into government bonds with high credit quality.

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