Share products are a key offering for financial institutions, allowing clients to invest in the organization while benefiting from potential dividends. In this post, we will explore how to design a share product and the steps to implement it in a bank.
1. Understanding the Fundamentals
- Product Name: What will the share product be called?
- Total Number of Shares: How many shares will be issued, and how many will be available for clients?
- Unit Price of Shares: What will the price per share be?
- Dividends: What will the dividend distribution rate be, and how frequently will they be paid?
- Lock-in Period: Will there be a period during which the shares cannot be sold?
- Client Limit: What will be the maximum number of shares a client can purchase?
2. Example of a Share Product A typical share product example could involve issuing 10,000 shares at a unit price of €50. Clients can purchase up to 500 shares each, with an annual dividend of 5%.
3. Steps to Design a Share Product
In this article, we will guide you through the essential steps to create a shares product in Phenix Web, providing you with clear instructions and practical tips for each phase of the process.
Click here: https://saworks.azurewebsites.net/docs/bank-product/shares-products/how-to-create-a-shares-product/
4. Best Practices for Designing a Share Product
- Ensure the dividend distribution terms are clearly defined for clients.
- Offer dividend reinvestment options to encourage clients to hold onto their shares.
- Comply with legal and regulatory requirements to ensure transparency and the security of client investments.