What is a Bonus Certificate?

BonusIn Certificates the bonus is the percentage value that defines the minimum repayment at maturity of the Certificate, if the underlying asset is below the Barrier Level in the planned Valuation Dates. Certificates are derivative financial instruments belonging to the category of Conditionally Capital Protected CertificatesCapital protected Certificates are financial instruments that offer the opportunity to invest upward or downward on the underlying financial assets ensuring investor protection at maturity of all or part of the issue price of the Certificate. The level of protection is established in the issue phase.. They can be used to invest in underlying financial assetsThe real or financial asset on which the price of another financial instrument is derived. such as sharesTitle document showing the minimum stake of a shareholder in the share capital of a company that entitles the holder or the Shareholder, to receive a part of the profits eventually distributed by the company and which can confer the right to vote at the shareholders meetings. There are different types of shareholdings depending on the company incorporation and these can be: ordinary, preference or savings., a stock index, a currencyThe currency is the money the value of a security is expressed in. The term Currency is used to mean the currency in circulation in a given country and which can be taken as a Reference Currency for securities issued in that country. In the banking terms, currency represents the day interest on a certain sum begins to accrue., a commodityThe term commodity essentially indicates a basic good such as, for example, metals, minerals, agriculture and livestock and other physical assets, on which investors can trade through the use of derivatives. or an interest rateThe interest rate measures the cost of a financing transaction and represents the compensation paid to the bank for the loan of a certain amount of money. It is expressed as a percentage and with reference to the year.. The peculiarity of this type of tool is the ability to provide the investor a returnThe Return on investment is the change in total percentage of the value of a financial instrument at a given time frame. at maturityExpiry or Maturity is the date a financial instrument ceases to exist or matures. through the payment of a premiumIn option contracts, the premium is the amount of money that a buyer pays the seller to have the right to buy or sell an Underlying asset at or by a future date at a predetermined price. Relating to Bonus Certificates the premium is represented by the Bonus and is paid to the investor if the value of the Underlying, (if it is a European-style certificate or continuous basis if an American-style certificate), at maturity does not reach the Barrier Level., the BonusIn Certificates the bonus is the percentage value that defines the minimum repayment at maturity of the Certificate, if the underlying asset is below the Barrier Level in the planned Valuation Dates., even in event of a moderate fall of the underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. asset. For this type of CertificateCertificates are securitized instrument derivatives linked to the performance of an Underlying, whether, for example, shares, a stock index, a currency, a commodity or an interest rate. Certificate are traded, in Italy, both on the SeDeX as well as on the EuroTL X multilateral trading facilities of the Italian Exchange., usually, the capital protectionThe term protection means the minimum percentage of invested capital that is returned at maturity. at maturityExpiry or Maturity is the date a financial instrument ceases to exist or matures. is conditional on the underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. asset reaching a specified price, called the Barrier LevelThe Barrier Level in a Certificate is the point at which the investor loses the capital protection of the certificate..