Qarant Invest was established in August 2011. It has 7 staff members, 3 of whom are CFA candidates. It has a brokerage license and offers brokerage services on foreign financial markets. It signed memorandums with the American Alumni Association and Qafqaz University. It launched offline brokerage services and will launch its Qarant FX online trading platform in January 2012.

2. Short information about Qarant Invest
 Facts:
 1) was established on August, 2011;
 2) staff – 7 workers (3 CFA candidates);
 3) has brokerage license;
 4) offers trainings;
 5) offers brokerage services on foreign financial markets;
 6) on September, 2011 signed Memorandum with American Alumni
Association;
 7) on November, 2011 signed Memorandum with Qafqaz
University;
 8) already launched offline brokerage services;
 9) will launch Qarant FX online trading platform in January,
2012.
www.qarantinvest.az

3. Financial market – what’s that?
 Financial market is a mechanism that allows to
buy/sell financial instruments.
 Almost every person (and almost all types of
organizations) can become participant of the financial
market (domestic and foreign markets).
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4. Financial markets
Currency market Capital market Money market Derivative market
Equity market Short-term Futures market
FOREX debt obligation
Bond market Options market
market
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5. For what we need financial
markets?
 Financial markets give the next mentioned opportunities:
 1) opportunity of borrowing money from the market with
low interest rates through issue of debt obligations;
 2) opportunity of attraction money through initial public
offering (IPO);
 3) opportunity of risks lowering for existing financial
operations;
 4) opportunity of investing money in financial instruments
for getting future profit;
 5) etc.
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6. Participants of financial markets
List of participants:
1) banks;
2) investment funds;
3) pension funds;
4) insurance companies;
5) corporations;
6) brokerage companies;
7) individuals.
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7. What does financial instrument
mean?
 A financial instrument is a tradable Investor
asset of any kind, either; evidence of
an ownership interest in an entity;
or a contractual right to receive, or
deliver, cash or another financial Broker
instrument.
 Investors buy/sell financial
instruments through brokers.
Exchange
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8. History of trading methods
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9. Currency market
Currency market is very famous as a FOREX (foreign
exchange). Financial instruments available for trading
on this market are the currencies of different countries
(currency pairs).
The main financial instruments on the FOREX market
are:
1) EUR/USD
2) GBP/USD
3) USD/JPY
4) USD/CHF
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10. Main currency traders
Rank Name Market share
1 Deutsche Bank 15.64%
2 Barclays capital 10.75%
3 UBS AG 10.59%
4 Citi 8.88%
5 J.P.Morgan 6.43%
6 HSBC 6.26%
7 Royal Bank of Scotland 6.20%
8 Credit Suisse 4.80%
9 Goldman Sachs 4.13%
10 Morgan Stanley 3.64%
Other traders 22.68%
% of overall volume, May 2011
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11. Stock market
Basically stocks and bonds are traded on the equity
and bond markets accordingly.
Stock’s opportunities:
1) Voting right;
2) Opportunity of getting capital gain;
3) Stock represents a part of net assets of entity.
Bond’s opportunity:
1) Fixed income;
2) Privilege during bankruptcy.
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12. Stocks – short information
 Stock of a business entity represents the original
capital paid into or invested in the business by its
founders.
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13. Stocks – short information
 There are two main types of stocks: common and
preferred.
 Common stock:  Preferred stock:
 1) gives a voting right  1) does not give a voting right
 2) pays non-fixed dividends  2) pays fixed dividends
 3) can not be convertible  3) can be convertible
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14. Stocks – short information
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15. Stocks return examples
Company name January 2009 June 2011
Apple 85.88 335.67 +290.85%
Ford 2.30 13.79 +499.56%
J.P.Morgan 31.19 40.94 +31.26%
Caterpillar 44.91 105.15 +134.13%
McDonald’s 62.38 84.32 +35.17%
Figures in US dollars
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16. Resources for stock analysis
 There are some very interesting web-sites with
qualitative information about stocks.
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17. Bonds – short information
 In finance, a bond is a debt security, in which the
authorized issuer owes the holders a debt and,
depending on the terms of the bond, is obligated to
pay interest (the coupon) to use and/or to repay the
principal at a later date, termed maturity. A bond is a
formal contract to repay borrowed money with interest
at fixed intervals.
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18. Bonds – short information
Bonds
List of sub-types of bonds:
Fixed rate bonds
Floating rate bonds
Government bonds
Zero-coupon Corporate
Treasury bonds
Municipal bonds
etc.
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19. Bonds – short information
I want to invest 1000
USD in corporate
fixed rate bond We can offer You
5,00% 3-year bond
for 1000 USD
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20. Bonds – short information
Third year – 1000 + 50 USD (nominal and 5,00% of 1000 USD)
Second year – 50 USD (5,00% of 1000 USD)
First year – 50 USD (5,00% of 1000 USD)
1000 USD
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21. NYSE
 New-York Stock Exchange stock
Number of world’s largest
NYSE is thelistings --- 2317
exchange by in 1817. Currently
was founded market capitalization
(15,97 is located at 11
NYSE trillion dollars as of
December 2010)
Wall Street, New-York
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22. NASDAQ
 NASDAQ islistings --- 2872
Number of the world’s second
Stock Exchange
largest stock exchange by market
was founded in 1971
capitalization (4,93 trillion dollars
as of December 2010)
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23. Tokyo Stock Exchange
 Tokyo Stock Exchange2292 world’s
Number of listings --- is the
was foundedstock exchange by
third largest in 1878
market capitalization (3,82 trillion
dollars as of December 2010)
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24. LSE
 London Stock Exchange is the world’s
Number of listings --- 2966
fourth largest stock
was founded in 1801exchange by
market capitalization (3,61 trillion
dollars as of December 2010)
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25. Futures market
Types of futures contracts:
1) Futures for is a derivative financial instrument
Futures oil;
2) Futures for gas;
(contract) with future delivery.
3) Futures for currency;
4) Futures for interest rate; instruments of the
The main financial
5) Futures formarket are contract based on
futures wheat;
6) Futures for meat;
financial items and commodities.
7) Futures for gold;
8) Futures for silver;
9) Futures for stock indices;
10) etc.
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26. Futures – short information
 In finance, a futures contract is a standardized contract
between two parties to exchange a specified asset of
standardized quantity and quality for a price agreed today
with delivery occurring at a specified future date, the
delivery date.
 The contracts are traded on a futures exchange.
 In many cases, the underlying asset to a futures contract ,
may not be traditional commodities at all – that is, for
financial futures the underlying asset or item can be
currencies, securities or financial instruments and
intangible assets or referenced items such as stock indexes
and interest rates.
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27. Futures – short information
41 Sell
40
39
38
37
36
35 Buy
34
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28. Options – short information
 In finance, an option is a derivative financial instrument
that specifies a contract between two parties for a future
transaction on an asset at a reference price. The buyer of
the option gains the right, but not the obligation, to engage
in that transaction, while the seller incurs the
corresponding obligation to fulfill the transaction.
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29.  Thanks for Your attention