Expected
yield per annum
27-29%
  • Minimal Investment amount 4800 USD
  • Expiration date: 23.01.2019
  • Capital Protection: 75%

Microsoft is a multinational IT giant specializing in the production of software for various types of platforms (personal computers, mobile phones, game consoles, etc.). It is one of the largest public companies in the world with market capitalization of $ 728.4 billion and 124 thousand employees.*

Underlying Assets MICROSOFT
Currency USD
Expected yield, % per annum 27-29%
Volume of investments 4800 USD
Term of placement of the deposit up to 23.01.2019
Protection of capital 75%
Participation Rate 0.8
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • Unlike its main competitors, Microsoft has demonstrated consistent growth throughout its history, without sharp drops of stock prices, even at times of global crisis or when the company's management was changing.
  • Unsurpassed Market Position. Since mid-nineties, Windows operating systems are the most used by personal computer owners. Even though Apple and its IOS pushed Windows a bit as a percentage of the OS used, 13.23% compared to 82.74% for personal computers, the difference still remains huge.
  • Multi-profile. The company's management is closely following the current trends, but even though it lost the battle for the hearts of smartphone owners, it has demonstrated incredible persistence in the computer games segment over the past few years. One of the divisions is XBox, which produces one of the most popular gaming consoles, and there appeared rumors not so long ago that it intends to acquire the world's largest game developer, the company EA.

 

Analysis:

At the moment, the company's shares are traded near the historic high and are aimed at testing the psychological level of $100 per share. If the price breaks this level and fixes above it, we expect a growth dynamic similar to the previous six-month period, at a rate of 15.7%.

 

 

This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.

The product is dedicated specifically for conservative investors, where they can  define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.

*according to the information from the company's website.

  • Product with capital protection
  • Minimal Investment amount 4800 USD

How the product works

Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.

Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.

The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.

The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.

If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.

The parameters of the products are indicative and may vary depending on the market situation.

 

Examples:

1. The price of the underlying security moves in the direction chosen by the investor.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 75% (Capital protection level) + 0.8 (participation rate) * 60% (price change) = 123%

2. The underlying security’s price moves in the opposite direction and finished below the Capital protection level.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 75% (Capital protection level) = 75%

Attention!

The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.

Note:

The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.

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