Stock market and bonds

1. Stock market and bonds MirekKysely MA2N0228

2. STOCK MARKET • The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. • This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market.

3. BONDS MARKET • The environment in which the issuance and trading of debt securities occurs. The bond market primarily includes government-issued securities and corporate debt securities, and facilitates the transfer of capital from savers to the issuers or organizations requiring capital for government projects, business expansions and ongoing operations. • Most trading in the bond market occurs over-the-counter, through organized electronic trading networks, and is composed of the primary market (through which debt securities are issued and sold by borrowers to lenders) and the secondary market (through which investors buy and sell previously issued debt securities amongst themselves). Although the stock market often commands more media attention, the bond market is actually many times bigger and is vital to the ongoing operation of the public and private sector.

4. STOCKS vs. BONDS • Stocks are only issued in corporations. Bonds can be issued by corporations or government entities. • Stocks pay dividends which are not guaranteed. Bonds pay interest which is guaranteed, unless the company or government entity goes bankrupt. • In the case of bankruptcy, bonds generally provide more safety than stocks.

5. ORCO • Orco Property Group is an investor, developer and asset manager in the Central European real estate and hospitality market.Operating in Central Europe since 1991, Orco currently manages circa EUR 1.7 Billion worth of assets. • OrcoProperty Group, based in Luxembourg, is a public company listed on the Paris Stock Exchange Euronext and on the Prague and Warsaw Stock Exchanges.

6. ORCO • Sale of one share of ORCO company just for a 52.25 CZK knocked their price by 4.5 percent downand for several tens of minutes decreased market capitalization of the company about 265 million CZK. It's illegal and what happened? • It is not certainly nothing illegal, it's simply a matter of supply and demand in the market. When the stock market less liquid, and small trades can cause large fluctuations. It is common worldwide.

7. Boiler room: Scam when investing in stocks • https://www.youtube.com/watch?v=KwTBf99X3PI • In business, the term boiler room refers to an outbound call centre selling questionable investments by telephone. It typically refers to a room where salesmen work using unfair, dishonest sales tactics, sometimes selling penny stock, private placements or committing outright stock fraud. The term carries a negative connotation, and is often used to imply high-pressure sales tactics and, sometimes, poor working conditions.

8. Prague Stock Exchange • people are not interested • very few large companies with attractive growth potential • probable end of the Prague Stock Exchange will be in 5 years if they will not unite with the Vienna and Warsaw

9. Thank you FOR your attention