Why Invest in Equities?
There is possibility of having capital gain in equity trading by means of short/long-term price changes.
Companies may decide to distribute dividend in their general meetings. In this case, investors become entitled to benefit from this dividend payment.
For individuals; capital gains of equity transactions are subject to 0% withholding tax. Capital gains for equities of Securities Investment Trusts ("SIT") are subject to withholding tax of 10%.
Equity dividends are subject to 15% withholding tax. SIT, Real Estate Investment Trust, Venture Capital Investment Trust equity dividends are subject to 0% withholding tax.
How to Invest in Equities?
Equity transactions are executed with the international service quality of HSBC and local expertise of HSBC Yatırım.
HSBC Bank A.Ş. works with HSBC Yatırım Menkul Değerler A.Ş. in scope of the service agreement of the Intermediation of order transmission underwritten between HSBC Bank A.Ş. and HSBC Yatırım Menkul Değerler A.Ş.
In order to execute Equity transactions, an investment account has to be opened within HSBC Yatırım Menkul Değerler A.Ş. Having an HSBC Bank A.Ş. account is a pre-requisation to open an investment account within HSBC Yatırım Menkul Değerler A.Ş.
Equities are registered and monitored in the account opened at CRA (Central Registry Agency) in dematerialized form.
Through HSBC Bank, customers can also benefit from public offerings in which HSBC Yatırım participates.
Through which channels can you trade?
You can trade equities through HSBC Internet Banking, HSBC Mobile Banking, HSBC Telephone Banking, Session Room and Equity and Futures Transaction Platforms (Ideal Data and Matriks Data).
Equity Trading Information
Trading Hours
| Call Phase (Order Collection) (Opening) |
9:40 – 9:55 |
| Price Determination & Matching |
9:55 (*)* |
| Trading |
10:00 – 18:00 |
| Margin Broadcast For Closing |
18:00 – 18:01 |
| Call Phase (Order Collection) (Closing) |
18:01 – 18:05 |
| Price Determination & Matching |
18:05 (*)* |
| Margin Broadcast |
18:07 – 18:08 |
| Trading |
18:08 – 18:10 |
(*)*: Indicates a time that may differ according to the completion of transactions.
Session Transactions
- Equity orders are delivered at any time of day; however, buy/sale transactions are executed at Borsa İstanbul A.S. equity market between 09:40- 18:10 on full business days. Orders collection is at 09:40-09:55, price determination and matching is at 09:55 and continuous trading are executed between 10:00 and 18:00. Equity trading transactions are executed on secondary market in Borsa İstanbul A.S.
- Buy/sell transactions are executed at Borsa İstanbul A.S. equity market between 09:40-12:40 on half business days. Equity buy/sell transactions are executed in secondary market at Borsa Istanbul A.S.
Commissions
A maximum of 0.2% (2 in a thousand) commission is charged for equity buy/sell transactions.
Fundamental Risks of Equity
Equity is compatible with the risk profile of customers who are willing to take “Very High Risk”. Products with “Very High Risk” risk profile have higher probability of price fluctuations since they involve higher investment risk. Equity may enable higher income yield compared to Low and Medium Risk level products. However, it also has higher probability of capital loss compared to Low and Medium Risk level products.
Market Risk: Due to the fluctuations within the price of equity, the portfolio value may decrease and because of that reason investor may experience a loss in capital. Investor may not get back the principal amount invested in equity. Equities involve risks arising from the financial structure of companies therefore, they are not guaranteed by HSBC Bank A.S. and/or HSBC Yatırım Menkul Değerler A.Ş.
Counterparty Risk: There is risk that counterparty brokerage firm does not fulfill its settlement obligation for equity transactions. “Clearing House” (Takasbank) acts as a buyer against the seller and acts as a seller against the buyer in order to minimize this risk. The investor may loss a part of or all of his principal amount invested in equity as a result of impairment in the company’s financial structure or bankruptcy.
Liquidity Risk: In secondary markets, there is risk for investors who cash out their investment products. Liquidity risk is the risk that investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value.
Country Risk: The economic, politic and social structure of a country (where the investment is made) in addition to interest rate and exchange rate policies may have impact on the price of the investment product. These risks which can be defined as local risks could be currency restrictions, transfer risks, moratorium, tax regulations etc. Moreover, there can be fluctuations in the price of the equity because of the global economic and politic effects.
Operational Risk: The risk that can be based on, directly or indirectly, the inadequate internal processes, people, systems and/or external agents. Investment process is being overseen by internal control and risk management. Additionally, this process is being audited by regulatory authorities.
Past performance of equity is not a reliable indicator of future performance. In equity trading the investor may loss a part of or all of his principal amount invested in equity as a result of impairment in the company’s financial structure or bankruptcy. Therefore, your risk profile and appetite should be suitable for this product.
Frequently Asked Questions
What is Equity?
Equity is a security issued by corporations which represents contribution to the company’s capital.
What are the Rights Provided by the Equity?
- Dividend Right
- Preferred Shares Right
- Right to Participate in the Liquidation Balance
- Right to Participate in Company Management
- Voting Right
- Right of Information Acquirement
How can I open an Equity account?
Equity transactions can be executed through an investment account to be opened in the HSBC Yatırım Menkul Değerler A.Ş. You can make your investment account opening requests via digital channels (Internet Banking and Mobile Banking), or you can send them through your branch. For detailed information.
Through which channels can I execute Equity Transactions?
You can trade your equities through HSBC Internet Banking, HSBC Mobile Banking, HSBC Telephone Banking, Session Room, Equity and Futures Transaction Platforms.
How can I see Equity price information? Can I see Equity depth information?
Equity prices can be viewed with a 15-minute delay from the Real Time Data screen in Internet Banking. If you have an existing investment account in the HSBC Yatırım Menkul Değerler A.Ş. you can instantly monitor the data within the scope of the Mixed Level 1 Data Package on the Internet Banking Real Time Data screen free of charge. If you want to monitor in-depth data from the same screen, you can get information about how to subscribe to Equity Level 1+ Data Package by contacting the branch to which your current account is linked.
What are the risks of trading Equities?
Market Risk: Due to the fluctuations within the price of equity, the portfolio value may decrease and because of that reason investor may experience a loss in capital. Investor may not get back the principal amount invested in equity. Equities involve risks arising from the financial structure of companies therefore, they are not guaranteed by HSBC Bank A.S. and/or HSBC Yatırım Menkul Değerler A.Ş.
Counterparty Risk: There is risk that counterparty brokerage firm does not fulfill its settlement obligation for equity transactions. “Clearing House” (Takasbank) acts as a buyer against the seller and acts as a seller against the buyer in order to minimize this risk. The investor may loss a part of or all of his principal amount invested in equity as a result of impairment in the company’s financial structure or bankruptcy.
Liquidity Risk: In secondary markets, there is risk for investors who cash out their investment products. Liquidity risk is the risk that investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value.
Country Risk: The economic, politic and social structure of a country (where the investment is made) in addition to interest rate and exchange rate policies may have impact on the price of the investment product. These risks which can be defined as local risks could be currency restrictions, transfer risks, moratorium, tax regulations etc. Moreover, there can be fluctuations in the price of the equity because of the global economic and politic effects.
Operational Risk: The risk that can be based on, directly or indirectly, the inadequate internal processes, people, systems and/or external agents. Investment process is being overseen by internal control and risk management. Additionally, this process is being audited by regulatory authorities.