FX trading online

Types of securities on the Bulgarian stock exchange

On the BSE can be found shares of public companies, government securities, and corporate and municipal bonds.

Stock/Shares

Common stock represents share in the ownership of a company. The shareholder is given the following rights:

-         voting right to participate in the decisions taken on the firm’s board meeting

-         priority to buy proportion of any new share issue

-         dividend right

-         in case of bankruptcy or liquidation, the right to recover proportional part of the firm’s assets just after the creditors are being paid off.

Advantages of the trade exchange

The investment in tradable securities has several advantages:

-         Public companies issue securities that are traded on the stock market and controlled by the governmental Financial Supervision Commission

-         public companies periodically issue financial and corporate information about their activities

-         the exchange holds trade sessions every workday

-         the exchange provides current information about the prices of the held transactions and the traded volumes of securities.

Corporate Bonds

Bonds are credit (loan) instruments with fixed income. During their time of being the holder receives set interest (usually two times per year) and at the maturity date is given their face value.

Government bonds are low-risk credit instruments since their payer is the state. Corporate bonds are used by firms to finance their business. They are riskier for the investor, but have higher profitability.