DEFINITION AND CHARACTERISTICS
A share is a title deed issued by a limited company that gives the holder a share in its capital. Shareholders are therefore involved in the company’s development.
- They can vote at general meetings of shareholders, which means that, within the limits of their share of the capital, they are involved in decision-making.
- They are also entitled to a share of the profits distributed in the form of dividends.
The shares of a listed company may be freely sold on the stock exchange.
Share prices are influenced by many factors:
- the company’s performance
- the future potential of the market in which it operates
- the economic and political environment
- the appreciation of financial market participants
- A shareholder receives remuneration in the form of a dividend paid annually, half-yearly or quarterly.
- The investor may realise a capital gain in the event of positive company performance and a rise in the share price.
- A shareholder with voting rights may actively participate in the decisions taken at general meetings.
- In principle, the total return potential of a share, consisting of a dividend and a capital gain, is higher than that of a bond.
- A shareholder is exposed to the risk of share price fluctuations.
- Investment in shares does not provide a stable and/or guaranteed income; income varies according to company performance and its dividend policy.
Our Private Banking advisors, either at the Bank's headquarters or at its branches, are available to provide guidance on the most appropriate solutions for your objectives and requirements.
Where to find us
There are Raiffeisen branches all over Luxembourg to make things easy for you. Find a branch or distributor wherever you may be!
We are here to answer your questions and can put you in contact with the right people depending on your requirements.