wikifolio certificates are exchange-traded financial products

wikifolio certificates are offered for trading on the Stuttgart Stock Exchange (EUWAX) and off-exchange via Lang & Schwarz. A large part of wikifolio certificates is also tradable at the BX Swiss in Swiss franc. and the trader receive no money of investors.

What exactly is a wikifolio certificate?

Lang & Schwarz seeks a complete hedging of the positions of the wikifolio certificates

When investors purchase a wikifolio certificate, they buy a product of the Lang & Schwarz Aktiengesellschaft, which accepts a risk position through this sale. According to the requirements of its own Lang & Schwarz Aktiengesellschaft risk management, this risk position is to be hedged within the prescribed limitation. 

All wikifolio certificates are collateralized

In order to limit losses from a possible insolvency, an issuing company can specifically collateralize its securities in the interest of its customers. For this purpose, the equivalent value of the investments in the collateralized securities is deposited in whole or in part with the selected custodians. The deposit is usually supervised by a trustee specifically appointed for this purpose. If the issuing company were to face economic difficulties, the trustee would access the deposited collateral and pay it to the creditors.

What does the collateralization of the wikifolio certificates mean?

No additional funding obligation

Investments made as part of wikifolio certificates are not subject to additional funding obligations. The risk of loss is restricted to the capital invested into the wikifolio certificate as well as the corresponding fees for the acquisition of the certificate.