Through the Capital Markets Directorate, OTP Bank Romania’s clients can trade financial instruments on the spot market managed by the Bucharest Stock Exchange. Financial instruments traded through the OTP Bank Romania's Capital Markets Directorate are:

• stocks
• bonds
• government securities
• fund units
• rights
• structured products

Shares are financial instruments issued by companies. A share is one of a finite number of equal portions in the capital of a company. The income received from shares is called a dividend (the portion of distributed, non-reinvested profits that the owner is entitled to), and a person owning shares is called a shareholder. When you own shares in accompany, you are also entitled to apportion of the value of that company, in case of liquidation.

Shares can be voting or non-voting, meaning they either do or do not carry the right to vote in the general shareholders meetings (GMS) and on corporate policy. Usually, a common share gives the owner, the right to vote at the election of the board directors or when voting on other issues in GMS.

Generally, preferred shares do not confer the right to vote, but they have a priority right over the company's earnings and on the company’s assets, compared to a common share, related to a preferred share, dividends must be paid before common share dividends. In addition, in case of the company liquidation, preferential shareowners can exercise their preferential rights on assets, they have superior rights compared to common shareowners but lower compared to bond owners.

Bonds are debt securities, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at further date named maturity. A bond is simply a loan in the form of a security with different terminology: the bond issuer is equivalent to the borrower, the bondholder to the lender, and the coupon to the interest.

When you buy a bond, you are lending money to an issuer such as a municipality or corporation. In return for the loan, you will receive from the issuer a specified rate of interest during the entire life of the bond at the maturity of the bond the issuer will repay you its value. Bonds and shares are both transferable securities, but the major difference between the two is that shareholders are the owners of the company, whereas bondholders are lenders to the issuing company. Among the types of bonds you can choose from the Bucharest Stock Exchange, are: corporate, municipal and international.

Corporate bonds are bonds issued by a company. Municipal bonds are debt securities that cities, countries and other governmental entities issue to raise money for public purposes. International bonds are bonds issued in a country by a non-domestic entity. By the way of interest, bonds can be of two types: bonds with fixed interest and bonds with variable interest rate (usually reported to an index plus a fixed margin ex. ROBOR, EURIBOR etc.).

Bonds with fixed interest may have the interest rate equal with zero, this kind of bonds called discounted bonds. Discounted bonds sold at a lower price than its real value, the gain comes from the difference between the price and the price purchased.

The government securities are financial instruments that certify public debt, representing the state loans on different periods (short, medium or long), issued in the national currency or foreign currency. Through these instruments, the state contracts a loan to finance, different projects, the state budget deficit, public debt, to support payments balance or to strengthening the foreign exchange reserve.

Rights on shares (pre-emptive rights and allocation rights). Pre-emptive rights are financial instruments that give the shareholder the right to subscribe newly issued shares before the respective shares were offered for subscription to other shareholders or third parties. Pre-emptive rights are negotiable apart from the shares to which they entitle for subscription. Allocation rights are negotiable securities, issued on short term, certifying the right of the owner to receive a share at the moment of listing the shares of a company on the market.

Fund units are financial instruments issued by collective investments schemes (CIS), at a price established according to the net asset value of the respective fund. When fund units are not traded on the stock exchange, CIS's calculates the daily net unit asset value with the following formula: adding up the current market values of all financial instruments held by the CIS in its portfolio and adding any other earned income, cash earnings then subtracting the debts and the result (total net assets) is divided by the number of units in circulation. The net asset value per unit changes from day to day depending on the above formula parameters. In the case of fund units traded on the Bucharest Stock Exchange, the value of fund units is determined based on the market supply and demand.

Structured products are hybrid financial instruments that represent a financial obligation of an issuer (debt), which includes a derived component, which alters the profile risk and performance of the instrument. These financial instruments are based on an underlying asset, which may be another financial instrument, stock index or currency, interest rate, commodity, baskets or combinations of these instruments and any other asset, index or measurement unit. Product issuers can be banks, investment firms and other financial institutions covered by the authorization and regulation of the competent authorities from member or non member States.

Currently on the Bucharest Stock Exchange there are traded two types of structured products: index certificates and turbo certificates (long and short).

Index Certificates allow you to benefit from market fluctuations in both ways. Index certificates benefit from rising prices, while short Index Certificates from falling ones. Unlike Turbo Certificates, index certificates does not benefit from leverage, so the yield cannot be higher than the underlying asset.

Turbo Certificates allow you to benefit from market fluctuations in both ways. Turbo Long certificates benefit from rising prices, while Turbo Short certificates from falling ones. Each movement in the price of the underlying asset may lead to disproportionately high returns or high losses due to the leverage effect.

Previous performances of financial instruments are not a guarantee for future results. Transactions with financial instruments presents several risks, including: market prices fluctuations, uncertainty of dividend yields and / or profits, exchange fluctuations etc.. Capital invested is not guaranteed, the gains from investments are usually proportionate to the risk assumed.