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	• Macroeconomic data • Daily and periodically reports • Shares • Bonds • Investment units • Prospects • General business terms

Education

Trading procedure

How to sell shares?

Come to the broker with identification document (ID card, passport or drivers´ license),
Broker informs you about trading procedure,
Conclude contract with broker in regards of selling shares,
Broker opens you proprietary and commercial account for securities at CDA,
Broker enters selling order into stock exchange system in accordance with your instructions,
In telephone contact with broker inform in regards of realization of your order,
Money is paid in your account on fourth working day from realization day of your order for selling shares.

How to purchase shares?

Come to the broker with identification document (ID card, passport or drivers´ license),
Broker informs you about trading procedure,
Decide which shares and at what price you want to purchase,
Conclude contract with broker in regards of purchase shares,
Broker opens you proprietary and commercial account for securities at CDA,
Pay advance payment in our gyro-account,
Submit payment notice confirming money in our gyro-account,
Broker execute order, i.e. enters it into stock exchange system,
Broker informs you about realization of your stock purchase order,
Purchased shares are attributed to your securities account in Central Register within three working days from date of realization of stock purchase order.

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Terms

Capital market	Wide term used for description of diverse aspects of financial market. It usually refers to invested money (or capital), editors, clients who use it and regulatory agencies. Institutions of capital markets include investment banks, stock exchanges and dealer houses, papers´ register, payment turnover and regulatory institutions.
Securities market	Narrower term than capital market referring to markets with trading with shares, bonds and other papers, as well as institutions which perform trading.
Stock exchange	Institution which represents organized securities market. It is market where securities are purchased and sold. Stock exchange itself does not buy up securities, yet it is place of meeting between sellers and buyers, wit predetermined rules and time, trading of securities takes place. Business of securities market in Montenegro performs Montenegro Stock Excange, established in 1994 and New securities stock exchange of Montenegro (NEX Montenegro stock exchange) established in 2001.
Central Depositary Agency (CDA)	Central Deposit Agency (CDA) is market institutions with role of central register and securities depository. Likewise, it performs electronic transfers of securities between sellers and buyers. Owner of securities has an account of securities at Central Depositary Agency and such qualification is obtained by registering securities with that agency. Certificate from this register is solely and exclusive proof proprietary rights over securities.
Broker	Mediator in business of trading with securities in behalf and account of its clients on market. In order of purchase or selling securities on stock exchange, you must turn to one of licensed brokering houses and give order for purchase, i.e. selling.
Dealer	Mediator who trades with securities in his/hers behalf and his/hers account.
Order for purchase/selling	Order which client – buyer or client – seller gives to his/hers broker to perform purchase, i.e. selling of concrete security.
Securities	Securities are written documents or identifications which contain certain proprietary rights.
Share	Security which represent proof about certain share in corporate capital, i.e. stock company. Owning certain number of shares gives proprietary right over certain share in enterprise which respectively corresponds to number of shares.
Bond	Bonds are debtor securities, which obligate its editor to pay bearer of paper, summary amount of principal and corresponding interest, on certain date. Investments in bonds usually carry less risk than investment in shares.
Investment fund units	In case you invested the voucher in some of privatization funds during privatization process, you became owner of investment units of such fund. These are, same as shares, proprietary securities. It can be freely trade with them on stock exchange and their price changes every day under influence of offer and demand.
Nominal share price	Price determined by editor on issuing date, based on business of the enterprise.
Market share price	Price formed on the stock exchange by direct contract of offer and demand
Capital profit	Difference between purchasing price and market price of selling afterwards.
Dividend	Part of stock company profit paid to share holders. Payment can be made in money or shares.
Portfolio	Set of different securities owned by physical or legal entity. Portfolio may include shares, bonds and investment fund units.
Investment funds	Diversified portfolios of securities governed by investment managers. The most frequent types are closed and opened funds. Shares – investment units of closed funds are traded with on stock exchange, but they cannot buy up their investment units. Opened funds can, up to request of the owner, buy up personal investment units.
Stock exchange indexes	Stock exchange indexes are ponder or non-ponder average values of VP. They could represent market in whole or individual segments (various industrial domains, different securities, etc.). By their movement, indexes should reflect current performances on the market, i.e. prevailing movement trend for securities on certain market

FAQ

What is the difference between voucher and share?
In process of mass voucher privatization, every mature citizens of Montenegro received the voucher he/she could invest in one or several stock companies on territory of Montenegro or in some of privatization funds. By investing vouchers in some enterprise, citizens automatically became owners of certain number of shares, i.e. part of such enterprise and on these grounds, obtained certain proprietary rights in relation to this company. It is important to highlight that not all invested vouchers had the same number of shares. Number of obtained shares has varied, depending on percentage of share capital aside for privatization in each of the enterprises and number of citizens who invested their vouchers in those companies. Share is type of security, while voucher is package of shares.

What happens with vouchers which are not used (invested) in process of mass voucher privatization?
Voucher owners who didn't use their right to invest in some enterprise in process of mass voucher privatization cannot use this right afterwards.

Why all invested vouchers do not have the same value today?
The reason lies in interesting of certain companies and investor's expectations. If the company realizes better business results or it is better renown, demand for its shares will increase and therefore their price as well. Considering that all vouchers are not invested in the same enterprise, similar they cannot have the same value.

What affects change of share prices?

Ratio of offer and demand for company or fund shares,
Value of the company,
Profit,
General market ambience, economic happenings, news regarding companies, interest rates, rumors, etc.

What to do in case that certificate of proprietary over certain shares, obtained after mass voucher privatization is lost?
Loss of such certificate does not mean that you have lost proprietary rights based on owning of certain securities. You can continue their realization, which means that you can freely dispose with your shares, including possibility of selling in any time. If you want to obtain similar certificate once again, you must turn to Central Depository Agency (CDA).

How can I know where all my shares are and how many I have?
Information of this kind can be obtained in Central Depositary Agency (CDA) which represents registrar (cadastre) of securities. CDA, in electronic form, keep receipts of securities from all its owners, i.e. data in regards of what shares do you own and their quantity.

What happens in case when owner of shares dies?
Heredity procedure is realized, and his/hers successor receives all proprietary rights on ground of subject security.


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