BME Growth investors

Investors in companies traded in the BME Growth segment should be aware that they take a higher risk than investing in publicly listed companies since investing in small companies with expansion projects is usually associated with higher risk levels than that of investments in larger companies whose activity is more consolidated in their respective markets.

For this reason, investment in companies traded in the BME Growth segment must be accompanied by appropriate advice from an independent professional if the investor does not have the profile of a qualified investor for these types of securities.

The first decision a saver must make when deciding where to invest, is exactly how much risk they are prepared to take on, bearing in mind that the highest returns usually go hand in hand with the highest risk.

In order to be able to assess all investment opportunities on the alternative market, investors need to find out about the company they wish to invest in, what their forecasts are, future projections and possible risks. This way the investor can ascertain which securities portfolio fits their investment profile.

If we take into account the investor's profile at all times, we will be able to make the best, most logical and strategic decisions when establishing and managing an investment portfolio.

Diversification is an investor's ally, regardless of their profile. By having a diversified portfolio of financial products, our investment will be exposed to less risk.   

Investors must see that BME Growth is a market for growth companies with medium- to long-term business projects and often with higher growth forecasts than consolidated companies in each sector.

All companies listed on BME Growth provide detailed information on their business and forecasts in the Information Document they are required to submit. This Document is available to investors on BME Growth website. Investors are advised to read the Information Document carefully and in its entirety before making any investment decision on BME Growth securities.

BME Growth companies are smaller than those which are listed on the stock market and are looking to raise finance on the market for their growth projects. Various BME GRowth companies have successfully undergone significant growth processes and are now larger than those on the stock market. So that the size of the securities does not affect a minimum liquidity level on the market, BME Growth has liquidity providers.

Listed real-estate investment trusts (REITs)

One of the newest securities for investors in BME Growth has been the REITs. It is worth highlighting some of the characteristics of these real estate companies.

REITs are public limited companies whose corporate purpose consist of holding (i) urban assets for lease (via acquisition or development) or (ii) shares in the capital of other REITs or similar foreign entities or similar activity.

They are regulated in Law 11/2009 of 26 October which regulates Listed Investment Companies in the Real Estate Market

REITs will be taxed at a rate of zero percent on the profits obtained, provided the shareholders with an ownership interest equal to or greater than 5% in their share capital pay taxes on dividends distributed at a rate equal to or greater than 10%. There is a mandatory requirement for the distribution of the profit for the year, through the distribution of a dividend of at least 80% of the income obtained from leases.

Benefits for investors

-Greater possibility of diversifying portfolios with less investment. Investors through REITs have the opportunity to invest in a variety of real estate assets using different instruments and helping to diversify their investment portfolio.

-Possibility to access the professional property managers in each sector. Delegation of the management of real estate assets to REITs, thus facilitating investors' access to a professional management for the monitoring, trading and valuation of the portfolio's component assets.
-Tax benefits .The profits from REITs will not be subject to taxes, the shareholders will pay taxes on the dividends distributed.

-Easier liquidity than with real estate assets

By allowing these companies to be listed on BME Growth, shareholders are able to buy and sell securities quickly at market price, thus being able to dispose of the shares immediately and obtain immediate liquidity

BME Growth is open to all kinds of investors: private and institutional investors, residents and non-residents.

Who should I contact?

Investing in BME Growth companies is very straightforward. These securities are traded on the Spanish market's electronic platform. So, just as we can invest in Telefónica or Inditex on the stock market, we can invest in these securities.

The best way to invest in BME Growth securities is to contact a market member (BME Growth members), as they are specialist intermediaries with direct access to the Market.

Our usual intermediary can channel purchase and sale orders for securities listed on BME Growth. First you must open a securities account. This account will be used to administer the investor's securities portfolio (sales/purchases, subscriptions, dividends, GSM attendance, etc.). All cash movements associated with market trades will be carried out in this account.

When the investor signs the contract to open this account they must be made aware of the applicable fees and commissions and the services offered by the intermediary (type or orders, how these orders can be sent: internet, phone, etc).

How much does it cost?

The cost charged to the investor when buying/selling on BME Growth comprises the following three items:

1. Trading costs:The fees applied by brokers for the purchase and sale of securities of companies listed in BME Growth are the same as those applied in the stock market.
2. BME GRowth fees: these are the same as those applied on the stock market; the amount is proportional to the cash value of the transaction. A fee of €1.10 is applied for transactions under €300, rising to €13.40 for transactions over €140,000.
3. Settlement fees: These are also the same as those applied to transactions involving stock market listed securities. A fixed fee of 0.0026% on the cash value of each transaction, with a minimum of €0.10 and a maximum of €3.50

Trading

BME Growth securities are traded on the SIBE electronic platform.

Depending on their size and trading volume, securities can be traded on the continuous market or on the Fixing system. Under this modality, securities remain under auction during the entire session, with two closing periods, one in the morning (12:00) and another in the afternoon (16:00).

The trading modality is included on the information file available for each security on the website.

Prices

The market section on MaB website shows both the session and the historical prices.

It is also common practice for an intermediary to offer investors the possibility of checking session prices on their own website.

The main financial media also offer detailed market information online.

Financial information

Companies listed on BME Growth must disclose periodic financial information.

1. Half-yearly information: A half-yearly financial report equivalent to an interim financial statement of the entity subject to at least a limited review of its auditor, with a reference to the significant events occurring during the semester, within four months after the end of the first half of each exercise.
2. Annual information: audited annual financial statements released in the four months following the end of the annual reporting period along with the corresponding Directors' Report.

All of these reports are available on  BME Growth website, in each company's individual file and under: Listed companies/ Financial information.

Inside Information and other Relevant Information

Listed companies must immediately disclose any information that may affect the company's valuation and, therefore, may significantly impact its share price.

All informationa released by companies are published in the  BME Growth Daily Bulletin They can also be viewed on any mobile app which can read RSS, adding this URL: https://www.bmegrowth.es/ing/RSS/BoletinEE.ashx

Research

The Research section of our website offers investors a variety of research on BME Growth companies written by numerous professionals. These reports can be extremely useful for investors to check their information and make investment decisions.

My BME Growth portfolio

Investors can also access the My BME Growth portfolio tool on the MaB website where they can track the return on their investment, stock by stock or for the portfolio as a whole.