Discount Certificates: An Alternative to Stock Investments

Discount Certificates An Alternative to Stock Investments

Executive Summary

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF FIGURES

LIST OF TABLES

1 Introduction

2 The Discount Certificate

2.1 Definition and General Information

2.2 Markets for Discount Certificates

3 Differentiation of Discount Certificates and stocks

3.1 Opportunities and risks

3.2 Evaluation

4 Behavior of Discount Certificates in Differen tMarket Scenarios

4.1 Assumptions

4.2 Five Market Scenarios

4.2.1 The Growth Scenario

4.2.2 The Moderate Growth Scenarios

4.2.3 The Stagnation Scenario

4.2.4 The Moderate Decline Scenarios

4.2.5 The Decline Scenario

4.3 Special considerations when investing in discount certificates

4.4 Evaluation and Critical Review

5 Strategies for investing into Discount Certificates

5.1 Classic Strategies

5.2 Unconventional Strategies

5.2.1 The short maturity strategy

5.2.2 The low volatility strategy

6 Conclusion

REFERENCE LIST