Trading Stocks

If you wish to become a co-owner of an enterprise, SEB banka offers you shares in that company. By becoming a shareholder, you will have the right to

• participate in the governance of the company
• by voting in shareholders' meetings
• receive a specific share of the company's earnings - as dividends and additional share issues

With the assistance of SEB banka you may purchase shares both in Latvian and foreign enterprises

Important!

There is a close connection between the developments in the world economy and the stock market. In a growing economy companies achieve good earnings and the stock market flourishes, testifying to the financial expansion of businesses. If, however, the economy is doing badly, affecting the earnings of companies, the stock market will trend lower. The stock prices are very volatile, because they react promptly to any news concerning the earning prospects of companies, to changes in consumer and business expectations, consumption indices, use of credit, etc.

In the long range stocks have shown the best returns compared with other investment vehicles. For example, in the U.S. stock market, the world's largest, the return on the stocks has averaged 14% annually since World War II. The market has, of course, experienced deep reverses, but it always has recovered and reached new heights. For those reasons, the stock market is a comparatively risky investment vehicle. Shares fluctuate sharply in price.

possible for share prices to rise or fall within 10% in one day. That is why stocks are more fit for investors who can afford to tie up their funds for a long term and are ready to face higher risk.