Stock Investing Zone

You have capital as investment available, as an investor, the diversification of capital is very important. Magdeburg, 11.06.2013 – the distribution of capital to different types of investment and financial products also known as diversification. In the foreground is diminishing the risk of investment in its entirety, what is to be achieved through the distribution of capital to different financial products. Anyone looking for an investment that offers adequate returns and tax advantages, is well advised with a profit participation certificate. The tax effect arises, that the already accrued in the respective price of the certificate of pleasure are included. This method increases the price of a licence of pleasure during a period of interest and falls on the day of the distribution of interest to the accrued interest amount of. Interest rates are here treated as gains: the investor holds his participation for more than 12 months, he can make tax-free income. Generally, an investor with the purchase of a licence of pleasure win the right to participate in the success of a company.

Of the structure and how it works here Participation certificates are a mix of stocks and bonds. Almost all certificates offer a fixed annual interest rate and are therefore comparable to a bond. Whether this interest however is paid depends on the profit of the company. A positive balance sheet result is generated in a year, also no interest payment. For this, but almost all certificates with a payment claim are equipped, i.e. when in the following years, the company achieved positive results, the offbeat interest payments will be made up.

Almost all certificates are issued by banks, so they are very secure in terms of interest payments. Nevertheless, you should place as investors here only on the pleasures of companies with good credit ratings. The risk increased slightly compared to a bond of participation certificates will be rewarded in return with a yield advantage of 1% to 1.5%. Profit participation certificates are a subspecies of the participation certificates. The difference between participation and non-voting is that a profit participation certificate is represented, while profit participation rights unverbrieft remains. The MCM investor Management AG has many years of experience in the business with profit participation rights. Their investors benefit from the MCM investor Management AG acquires real estate projects, which no longer correspond to the market conditions for different reasons. Here it is, for example, listed real estate, which are in need of renovation. These are then optimized according to requirements and sold again. Investors as enjoying legal employer participates in the business success of the company. Certificates offer realistic chance for everyone involved, if fair,”, according to the Magdeburg House. Profit participation rights in real estate companies are in fact secured with property assets and thus provide a higher security as a beneficiary of a manufacturing or service company. As admixture to the diversification of a profitable portfolio participation certificates are a highly recommended resources so, as long as care is taken in their selection on the creditworthiness of the issuing company.