Our Glossary
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| Open-end Mutual Fund | A unit for collective investment, which consists of a set of assets acquired by the sale of share certificates. The investment company issues an unlimited number of share certificates which their owner – the shareholder, may anytime sell back to the investment company at market price corresponding to the share in the assets in the fund. |
| Open-end Mutual Fund | A fund that issues an unlimited number of share certificates based on investors’ demand. The investment certificate price depends on the net asset value attributable to the particular number of shares. The investment company is obliged to repurchase share certificates at the shareholder’s request. Accordingly, the shareholders need not sell their share certificates at the capital market (stock exchange). |
| Operational Risk | The risk of loss in the event of human error, fraud or deficiencies of information systems. |
| Options and Warrants | A derivative financial instrument, security or future contract that represents an option, but not the obligation to buy or sell – to buy (Call Option) or sell (Put Option) – a certain underlying asset at an agreed future time at an agreed price. They are OTC or stock exchange derivatives. This instrument has a dual use – for speculation and for hedging. |
| OTC (Over-the-Counter) Financial Derivatives | Financial derivatives not admitted to trading on a regulated market (stock exchange). They are governed by the legislation of the respective countries and usually are subject to regulation. These are high-risk investment instruments of derivative type (see Risks) that include additional credit risk (issuer risk). |