Investing in the stock market
These securities generally consist of shares or bonds (which can be grouped together in the form of SICAVs, UCITS or FCPs) but also less prevalent securities such as Bons, Warrants, Trackers …
The securities account can also be referred to as the “financial instruments account” or the “ordinary securities account” (as opposed to the PEA).
Caution, investing in the stock market requires knowledge and acceptance of the particular risks associated with it. Before investing in this market, it may be useful to discuss this with your bank advisor, a wealth manager, or to obtain information from relevant organizations. Moreover, since the taxation of transferable securities changes regularly, a regular point in its portfolio by a professional is certainly a good patrimonial approach.
The securities account can be managed directly on the Internet by its holder: from banks specializing in on-line brokerage or from traditional institutions. Scholarship orders can also be placed on the telephone or in the branch with its customer manager.
The objective of this account is to diversify its assets and possibly to obtain better returns than those offered by more traditional accounts such as savings books.
Characteristics of the Securities Account
The securities account is linked to a current account (or deposit account) which makes it possible to carry out the buying and selling transactions by debiting or crediting the amount of these transactions. This current account can be specially dedicated to the operation of the securities account or be the one you use for everyday common operations.
The custody account is generally presented in the same form as a current account, namely:
Individual account: only one person owns the account and it alone can carry out the operations,
Joint Account: two persons are holders and each can carry out the operations independently of the other,
Indivis Account: An undivided account assumes that all account holders (at least 2) must give their approval for an operation to be carried out; The undivided account is often used in an estate where the heirs receive the account of a parent.
Securities accounts may also be held in bare ownership or usufruct (generally as a result of a succession or a gift).
It is also possible to give a power of attorney to a third party to carry out operations as is done on the books and current account.
A person can own as many securities accounts as he or she wants in as many financial institutions offering them. There is no minimum age to subscribe and there is no ceiling that hinders investment (unlike the PEA).
There are two different tax systems: Taxation relating to the sale of transferable securities (capital gains) and that applicable to income from shares or bonds (income from transferable securities).