In this blog post, Herfurtner Law Firm would like to give you an insight into the world of securities transactions and show you how to understand them and avoid the risks involved.

Whether you are an experienced investor or a novice in the field of capital investments, it is important that you know and understand the mechanisms and opportunities of securities transactions.

By thoroughly analysing the market, companies and the general economic situation, you can make informed decisions and diversify your portfolio. But at the same time, every investment in securities also involves certain risks that need to be understood and avoided.

Herfurtner Law Firm is here to assist you every step of the way and is ready to share its experience with you.

Topic overview

What are securities transactions?

Securities transactions are financial transactions in which securities, such as stocks, bonds, mutual funds or exchange-traded funds (ETFs), are bought, sold or traded. Securities are a form of investment in which investors acquire a financial interest in a company or debtor.

Securities transactions can be conducted through a bank or broker. The decision on which securities to buy, sell or hold is usually based on a thorough analysis of the market, the companies and the general economic situation.

It is important to note that securities transactions involve a certain degree of risk, as the performance of securities is influenced by many factors, such as political, economic or corporate developments. It is therefore advisable to be carefully aware of the associated risks and opportunities before any securities transaction and to weigh them up with regard to one’s own investment strategy and personal risk profile.

Herfurtner Law Firm can assist in reviewing securities transactions and assessing the risks involved, ensuring that its clients make informed and responsible decisions.

Risks in securities investments: What should be considered?

There are a number of risks to consider when investing in securities. These risks can result in the investor’s capital losing value and one may also suffer a total loss.

To assist investors in their investment decisions, one should be aware of the following risks and take them into account when planning investments:

  • Price risk: the value of the investment may fluctuate due to market changes.
  • Interest rate risk: An investment product always involves a risk that the expected returns will not be achieved in full or at all.
  • Inflation risk: There is a risk that inflation will exceed the returns on the investment, resulting in a real loss of capital.
  • Liquidity risk: Investors cannot always quickly sell their securities or convert them into cash.
  • Issuer risk: Investors should always check the creditworthiness of the issuer, as there may be a total loss if the issuer becomes insolvent.

“It is imperative that investors have a basic understanding of the risks associated with securities investments to ensure proper risk management. Understanding the risks is the first step in creating a portfolio that is appropriate for the investor.”

Securities transactions: it is important that investors assess each risk individually in order to develop a portfolio strategy that meets their investment objectives.

Investment goals and risk profile: how do you determine your investment strategy?

When you decide to invest your money, you must first determine your investment objectives and risk profile. Investment strategies are how you invest your money to achieve your goals. Investing involves risk. You need to know how much risk you are willing to take to achieve your goals.

In determining your investment goals, you must first consider why you are investing.

  • Do you want to buy a house?
  • Finance an education?
  • Or simply save for your retirement in the long term?

These questions will help you determine your most important financial goals in the area of securities transactions.

Once you know your goals, you need to decide what level of risk you want to carry. The higher the risk, the higher the returns can be. If you take a higher level of risk, you must also expect to lose more money. If you want to keep the risk low, the returns will probably be lower.

Once you have determined your investment goals and risk profile, you can determine the investment strategy that best suits you. Possible investments can include shares, bonds, investment funds, real estate or even precious metals. If you are unsure whether an investment is right for you, you can also consult a financial advisor who can help you determine your investment strategy.

Investing is a very personal decision. A good place to start is to be clear about your investment goals and risk profile. This information will help you decide which investments best suit you and your financial situation.

Securities transactions: Never invest more than you can afford and regularly review your investments to make sure they are still in line with your goals.

Checking the broker: How do you find a trustworthy provider?

When it comes to finding a suitable broker, it is important to take the time to choose a trustworthy provider. The broker should be reputable, safe and customer-oriented. Here are some tips that can help you find a trustworthy broker:

  1. Educate yourself before trading: read reviews, ratings and comments from other traders to get an idea of the quality of the broker’s services.
  2. Understand the risks: Before choosing a broker, understand the risks involved in trading. It is important to learn about the different trading instruments and risks involved in trading.
  3. Compare different providers: Compare different brokers to ensure you find the best broker for your needs. Compare the services offered, fees, commissions and other factors.
  4. Check the regulation: Make sure that the broker you choose is regulated by a regulatory body. This is important to ensure that the broker complies with all applicable laws and regulations.
  5. Test the customer service: Test the broker’s customer service by contacting them and asking questions. Check how fast and efficient the broker’s customer service is.

These are just some of the most important factors you should consider when choosing a trustworthy broker. If you follow the above tips, you will be able to find a trustworthy and reliable broker that will help you achieve your trading goals.

Independent advice: Why is an objective opinion important?

An objective opinion is essential for many decisions in life. Especially for important decisions such as choosing the right financial products, objective, independent advice should be sought.

An objective opinion is the best option in most cases because it does not have financial interests or other vested interests that could affect the advice. Instead, the client’s needs and goals are taken into account to find an informed and sustainable solution.

Here are some reasons why an objective opinion is important:

  • Independence: an objective opinion is not influenced by any particular company. An advisor who is objective can come to a good decision for the client without any financial interest involved.
  • Experience: An objective advisor has experience in the financial industry and can therefore make an informed decision.
  • Competence: An objective advisor can make a decision based on his or her experience and competence.
  • Client satisfaction: An objective advisor can focus on the client’s needs and thus make a decision that leads to the client’s satisfaction.

An objective opinion is therefore important for many decisions in life. By consulting an objective advisor, the client can be sure that they are making an informed, sustainable decision that fits their needs.

Securities transactions Transparency: What should be disclosed about costs and remuneration?

To create more transparency and trust in a company, it is important that information about costs and remuneration is disclosed. This information should be clear, prominent and easily accessible to ensure a high level of clarity and understanding.

A company can disclose the following information to ensure a high level of transparency:

  1. A clear listing of the costs that are passed on to customers, including any fees, taxes, shipping and delivery costs.
  2. A detailed description of the company’s compensation structure. This should include all types of compensation, including salaries, bonuses, awards and commissions.
  3. Information on any shareholder remuneration, including dividend payments and share options.
  4. A list of costs paid to third parties, including taxes, consultancy and legal fees.

“Transparency is a must when it comes to building trust in a company. When companies disclose costs and compensation, customers and investors can be assured that their money is being invested in a fair and open company.” – Warren Buffett.

Regulation and certification: how to check the seriousness of the provider?

Now follow some factors to check the seriousness of securities providers.

Regulation and certification: How do you check the seriousness of the provider?

It is important to know a provider you can trust. Therefore, it is important to check the seriousness of the provider. This can be done through regulation and certification.


Regulation is the first step to check the seriousness of a provider. Most providers are regulated by a government financial regulator. These keep an eye on the provider’s financial activities to make sure they comply with laws, regulations and standards. Depending on the country and type of provider, these regulators may vary.


Certification is the second step in verifying the seriousness of a provider of securities transactions. Certifications allow providers to prove that they meet certain standards and satisfy the requirements of their clients. Some of the most well-known certifications are those from ISO, PCI and SOC. These certifications help to verify the integrity and security of providers.

In today’s digital world, it is more important than ever that a provider can be trusted. Regulation and certification can help ensure that you know the provider is reputable and serves customers in a safe and fair manner. This protects both clients and companies from fraud and unwanted activity.

Securities business: Why is it important to diversify the portfolio?

Why is diversification important? Good portfolio diversification is an important part of a successful long-term investment strategy. Diversification means that the portfolio is spread over several assets in order to minimise risk.

In other words, it means that an investor invests in several assets instead of putting his money into a single security.

There are several reasons why it is important to diversify the portfolio:

  1. Reducing risk: diversification allows investors to minimise risk by not investing in just one investment. By putting their money in different investments, investors can spread the risk across multiple asset classes.
  2. Stable returns: Through diversification, investors can stabilise their returns by investing their assets in different asset classes. A well-diversified portfolio can help spread returns across different industries, currencies and asset classes, resulting in a more stable return.
  3. Maximising returns: Good diversification allows investors to earn more returns by investing in different asset classes. By investing in different asset classes, investors can create a portfolio that offers them a higher return than a single security.
  4. Increase in knowledge: Diversification makes an investor more informed about various market trends and developments. He can learn more about different asset classes and develop a better understanding of the market.

It is therefore important for investors to diversify their portfolio to minimise risk, stabilise returns and generate more returns. By investing in different asset classes, an investor will learn more about the market and develop a better understanding of different market trends.

Why should one be well informed about the products?

When buying products, it is important to be thoroughly informed. This is not only about finding the best product for your needs, but also about making sure you make the best decision possible. There are many reasons why you should be well informed about products.

* Firstly, you can only make an informed decision if you are clear about the individual products. One must not only be informed about the features of the products, but also about their advantages and disadvantages. This way, one can find the best possible product for oneself.

* Secondly, one can save a lot of money by researching about products. By researching for the best prices and deals, one can ensure that one gets the best value for money.

* Thirdly, one can protect themselves from rogue sellers by doing research on products. By researching customer reviews and testimonials, one can ensure that one does not fall for rogue sellers.

It is therefore important to research the products thoroughly before buying to make the best possible decision. By doing thorough research, you can ensure that you get the best product at the best price and protect yourself from rogue sellers.

How can we help you with your securities transactions?

The Herfurtner law firm offers its clients comprehensive advice in banking and capital market law. Our aim is to provide you as an investor with the best possible legal security in your securities transactions.Our aim is to provide you as an investor with the best possible legal security in your securities transactions.

Our service portfolio consists of the following areas:

  1. Legal advice and representation in capital investments and securities transactions.
  2. Review of terms and conditions and contracts with banks.
  3. Assistance with financing, bonds and funds.
  4. Advice on capital market products and derivatives.
  5. As well as advice on M&A transactions and asset management.
  6. We also advise and represent clients who have suffered financial damage as a result of dubious securities transactions.

We are committed to ensuring that you as an investor can act efficiently and successfully on the capital market. We also support you in cases of dubious financial transactions in enforcing your claims for damages.

“Our legal advice can help you to recognise and avoid dubious securities transactions,” says lawyer Wolfgang Herfurtner, managing director of the Herfurtner law firm.

If you would like further information on our services relating to advice on securities transactions, please do not hesitate to contact us. Our lawyers will be happy to assist you in word and deed.