The strike price of a share bond is an important value that is determined as a percentage of the share price even before the bond is issued (issue). This percentage indicates how high the strike price will be at the share price when the share bond is issued. For example, if the strike price is set at 90% of the share price and the price of the stock is €100 at the time it is set, the strike price will be €90. However, this price is not fixed as an absolute figure before the issue, as it depends on the current share price when printed. Only shortly before the bond is issued, is the strike price determined as an absolute value and then also displayed in our app.

Regardless of the development of the share price, you will receive monthly interest paid to your NAO account. The exact date can be found accordingly in the product information in the app.

In short, apart from the early sale fee, you will not incur any additional costs when buying a share bond with NAO and the interest rate shown in our app represents the interest rate after deducting all costs.
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When you buy a share bond with NAO, there are no entry fees for you as a customer. Account management or deposit fees are also not charged. The cost of the product is already included in the interest rate that you receive as a customer. This is done through a so-called sales commission, which NAO receives from the issuers of the share bonds. This means that if you receive an interest rate of 10% on your investment, for example, this has already taken into account that NAO will receive a sales commission of between 1 and 1.5% directly from the issuer. As a customer, you will therefore not be asked to pay separately, as all costs are already included in the product costs. So when you invest 1,000 euros, you invest exactly that amount without any further costs being deducted from your account or reducing your investment amount. The only exception is the early sale of a share bond, which involves a fee of 10 euros.

Stock price above strike price: If the share price is above the strike price at the end of the term, you get back the full investment amount in the form of money.
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Stock price below strike price: If the price is below the strike price, your repayment will be made in the form of shares. The number of shares is calculated by dividing your investment amount by the strike price. For example, with an investment of 1,000 euros and a strike price of 90 euros per share, you would receive 11 shares and 10 euros as cash settlement.

Scale and meaning: The risk level is given on a standardized scale of 1 to 7. This scale is used to make the risk of different financial products comparable. This scale is not set by NAO, but by the banks themselves. In doing so, they follow a standardized procedure for determining the risk indicator. A low risk level (1) indicates a very low risk, while a high risk level (7) indicates a very high risk.
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Calculation basis: Think of the overall risk indicator as a type of traffic light that shows you how risky a particular investment is. This indicator is based on three main types of risks:
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Market risk: How much can the value of the investment fluctuate? If the value fluctuates significantly, the risk is higher.

‍Credit risk: Is there a risk that the company offering the financial product will become insolvent and unable to meet its obligations?

‍Liquidity risk: How easily can you convert the investment back into money? If it is difficult to sell the investment quickly, the risk is higher.
Risks are often presented on a scale of 1 to 7, with 1 representing a very low risk and 7 representing a very high risk.

Comparative value: For a better understanding, the risk level can be compared with known indices. A broadly diversified global stock index, for example, has a risk level of 4. This level is classified as medium risk. A high-risk leverage product, for example, has risk level 7.