An investment company is a legal entity created as a joint-stock company that holds the respective license to operate and provides investment services defined by legislation. The investment companies provide main and representative investment services.
Main investment services are the following:
1. Acceptance and implementation of customer requests on operations performed with securities or derivatives;
2. Managing the portfolio of private investors;
3. Advising on investments;
4. Settlement and underwriting of securities without taking responsibilities;
5. Settlement and underwriting of securities with taking responsibilities;
6. Performing operations with securities or derivatives for its benefit as a member of central depository and stock exchange;
7. Margin trading.
Representative investment services are:
1. Managing the securities accounts of customers, as well as the operations on issuance of securities or derivatives with taking responsibilities;
2. Lending to investors as a credit or in other forms for signing deals on securities or derivatives;
3. Performing investment research and financial analysis on securities or derivatives;
4. Performing services as a signer of guarantee on issued bonds;
5. Foreign exchange trading regarding the implementation of main investment services (operations).
According to the Law of the Republic of Azerbaijan “On Securities Market”, the investment companies may become a member of the central depository, stock exchange and clearing organization.