Securitized option in a specific underlying, usually a stock index or an individual stock, and with a term of three to six years. The investor has the option of repayment of the capital invested plus a corresponding return on a certain date. The prerequisite for repayment is that the underlying instrument must be at or above its value at the time the certificate is issued. It is therefore perfectly sufficient for the price of the underlying to move sideways in order to generate a profit. – If there is no premature repayment during the term because the underlying shows a negative performance on each reference date, there is still an opportunity to repay the capital invested at the end of the term. As security, most express certificates offer a buffer (cushion), namely a certain range within which the price of the underlying asset can fall until the investor suffers any loss at all. – In detail, there are – as with other certificates – very many special contractual arrangements, which ultimately determine the relationship between profit and risk of the respective security. Particularly worth mentioning are easy-express certificates, which usually have a maturity of only two years, and bonus-express certificates, which mix components of the bonus certificate with the express certificate in different ways. – See airbag certificate, bonus certificate, discount certificate, guarantee certificate, leverage certificate, index certificate, outperformance certificate, participation certificate, quanto, sprint certificate, twin-win certificate, certificate.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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