Commerzbank
Securities Company Information
About
The Commerzbank Securities Company
Commerzbank AG is one of Germany's largest banks.
Commerzbank
Securities is the trading division of Commerzbank AG.
They
currently offer more than 3000 warrants on a wide range of the world's
leading shares, stock market indices and industry sectors. These
warrants share the main features of most covered warrants issued
by other banks:
- They
are issued on the underlying asset's existing shares, which they
buy from the market.
- They
are exercisable either into the shares themselves (also known
as physical delivery) or a cash equivalent (also known as cash
exercise), dependent on the terms of the issue which are detailed
in the prospectus.
- The
company that you are investing in plays no part in the process.
- Holding
the warrant does not entitle you to voting rights in the company
or to receive dividends - unless you switch your warrant with
the underlying shares.
- Warrants
give you geared exposure to the company - and, if used in a certain
way, downside protection should the underlying share price itself
fall.
- As
with all covered warrants issued by banks, the investor is accepting
the credit risk of the issuing bank, so it is advisable to buy
only warrants issued by banks with good credit ratings, such as
Commerzbank AG.
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