The following products are available through Mercantil CIS:

American Depository Receipt – ADR:
A negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign stock listed on a foreign exchange. ADRs are denominated in U.S. dollars and trade on U.S. exchanges. The underlying security is held overseas on behalf of a U.S. financial institution. ADRs help to reduce the administration and duty costs on each transaction that would otherwise be levied.

Stock
A type of security that denotes ownership in a corporation and represents a claim on the corporation's net assets and earnings. There are two main types of stocks: common and preferred. Common stock usually entitles the owner the right to vote at shareholder meetings and to receive dividends that the company has declared. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders, and have priority in the event a company goes bankrupt and is liquidated. Stocks are also known as shares or equities.

Restricted stock
Also known as letter stock or restricted securities, refers to the stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award. Typically the conditions are satisfied over a period of time. However, those restrictions can also be based on some sort of performance condition.

Convertible Bond
A bond that can be converted into a predetermined amount of a company's shares at certain times during the bond’s life, usually at the discretion of the bondholder.

Corporate Bond
A debt security issued by a corporation, as opposed to those issued by the government. A corporate bond typically has a par value of $1,000, is taxable, has term maturity and is traded on a major exchange.

Municipal Bond
A debt security issued by a state, municipality, or county, in order to finance its capital expenditures. Municipal bonds are usually exempt from federal taxes and from most state, and local taxes if the holder lives where the bond has been issued.

Separate Account
A discretionarily managed investment account opened through a brokerage with an investment advisor in order to receive professional investment services in a portfolio of individual securities.

Treasury Bill (T-Bill)
A U.S. government debt security with a maturity that is less than one year. Treasury bills are issued through a competitive bidding process at a discount from par. This means they do not pay fixed interest payments like most bonds do.

Treasury Bond (T-Bond)
A marketable, fixed-interest U.S. Government debt security with maturity over 10 years. Treasury bonds are usually issued with a minimum denomination of $1,000.

Treasury Note
A marketable, U.S. government debt security with a fixed interest rate and maturity between one and 10 years. T-notes can be bought either directly from the U.S. government or through an intermediary. When buying from the government you can either put in a competitive or noncompetitive bid. With a competitive bid you can specify the yield you want; however, this does not mean your bid will be approved. A noncompetitive bid is one where you accept whatever yield is determined at auction.

Zero-Coupon Bond
A debt security that doesn't pay regular interest (coupons) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Open-Ended Fund
An investment company that continues to sell shares to investors, and will buy back shares when investors wish to sell. Open-end funds have no limit to the number of shares they can issue. The majority of mutual funds are open-ended. Units are bought and sold at their current NAV.

Closed-Ended Fund
An investment company that issues a fixed number of shares like any other corporation and usually does not redeem its shares. A publicly traded fund listed on stock exchanges or over the counter may trade above or below its net asset value.

Exchange-Traded Funds (ETFs)
Open-ended collective investment schemes, traded as shares on global stock exchanges. Typically, ETFs are passively managed investment vehicles trying to replicate a market index.

Structured Product
Originated as a securities combination of spot and derivative instruments, most structured products provide a final payout tied to the performance of an underlying asset as per a predefined formula. Structured Products can be designed with many different features as capital guarantees, leverage, profiting from bearish or bullish outcomes.

Hedge Funds
A variety of unregistered open-ended funds that usually follow an unconventional investment strategy, most of the time using short-selling and leverage, with a stated goal to produce absolute returns not tied to market indices. Hedge funds are marketed as diversifiers of traditional asset classes yet transparency and liquidity restrictions make them suitable for the larger and more sophisticated investors.

The following features are available with Mercantil CIS accounts:

Margin
Capacity to borrow money from the broker/dealer with the purpose of purchasing additional securities. A detailed margin agreement is always required and specific expertise on the part of the investor is generally required in so far as margin investing multiplies both gains and losses, and less capital is required to assume certain risks. Margin investing is also required to open short positions, as securities to be sold need to be borrowed.

Electronic Notification
Messages generated and forwarded electronically to advise a client of any account changes relating to activity confirmations and statements.

Real-time quotes
Real time quotes will typically display the current Best-Bid-Offer ("BBO" or "Inside Quote"), i.e. the lowest ask and highest bid available at the time for a given security, updated in real time.

Performance Reports
A periodic summary of all transactions and positions (long and short) as well as return and risk comparisons with relevant benchmarks for certain predefined periods of time.