Frequently Asked Questions
Bonds
A bond (in Latin: obligation) is a debt security which confirms the bondholder’s right to get from the issuer the par value together with interest at a specific time.
The bonds issued by Evocabank will be listed on the Armenian Stock Exchange. You can buy or sell them at any time.
Bonds are more efficient and rewarding securities. They have a number of advantages. Income from bonds is exempt from income tax and non-resident income tax. In case of selling the bonds, you keep the accrued interest.
Bonds are also guaranteed.
Under the RA law On Guaranteeing Compensation of Bank Deposits of Individuals, funds raised from bond issuance are considered guaranteed bank deposits and thus they are also guaranteed by the Deposit Guarantee Fund.
To buy bonds, you need to:
Visit any Bank office, fill out the application for bonds purchase, enter the sum to the special account or do it online from anywhere in the world at any time.
Surely, you can.
Like deposits, bonds can serve as collateral for short-term loans.
The loan will be provided for the term no longer than the bond maturity: bond nominal interest rate +2%, specifically, for AMD bonds - 12%, USD bonds - 7.5% per annum.
Potential investors in bonds can get additional information on terms and other details of the electronic version of the bond prospectus (registered pursuant to decision of the CBA chairman #1/562A dated 07.10.2020) here.
A share is a security representing ownership interest in a company. When an investor purchases shares, s/he becomes a partial owner of the company and may benefit from share appreciation or profits distributed as dividends when the company is successful. The share value may fluctuate depending on market demand, company performance, and economic conditions.
A bond is a debt security. When purchasing a bond, you are actually lending money to a company or government for a set time-period, in return, the bond issuer will pay back the money with predictable interest.
An ETF (Exchange Traded Fund) is an investment fund that is traded on a stock exchange like a regular stock. It usually combines multiple assets into one instrument, such as shares, bonds, or a mix of these.
A share is linked to a single company and, as a rule, offers higher rate of return with higher risk exposure, though.
A bond is a more stable instrument and can provide predictable interest income.
An ETF allows investing in multiple assets through a single instrument, which often helps diversify risk.
Absolutely.
You need to log into the EvocaTOUCH app, go to the “Accounts” section, select “Brokerage Account,” and complete the process online in just a few steps.
The app provides access to shares, bonds, Eurobonds, and ETFs across USA, European, and Asian markets.
Absolutely. Most investors do exactly the same thing — combining shares, bonds, and ETFs in their portfolio to balance risk and potential rate of return.
Enter the company name or ticker in the search field of Trade section of EvocaINVEST, select the security and place a buy order directly inside the active window.
A limit order is executed only at your specified price or better. It helps control the execution price but may not be filled if the market does not reach your limit price.
A market order is executed at the best available market price at the time. It is usually faster but the final price may differ from expectations, especially in volatile conditions.
A ticker is an abbreviated code used to identify a security on an exchange. For example, Apple is identified as AAPL, Google as GOOGL.
A dividend is a portion of a company’s profit distributed to shareholders. Not all shares pay dividends, and dividend payments depend on the company’s policy.
Yes, you can. EvocaINVEST accepts orders 24/7. Orders placed outside of regular trading hours are queued and executed automatically when the market opens.
Diversification means spreading your investments across different instruments, sectors, or markets so that the decline in one asset has minimal impact on the overall portfolio.
You can place a sell order at any time. If the market is open and there is a matching offer, the order may be executed immediately or according to your order conditions.
It depends on the selected market and instrument. Different securities may be traded in different currencies, such as AMD, USD, or EURO.
Security prices may go up or down depending on market conditions. Before investing, you need to acknowledge that investments may bring about cash returns as well as losses.
