2.2 -Patrimoine et environnement

• Funds of bonds carry a greater risk than money market funds.
• Shares represent a company's fraction of capital.
• Funds of bonds investments have higher risk, but high yield in short term.
• It is mandatory to close plan if withdrawal happens before the 4th anniversary of PEL.
• EURONEXT Paris SA manages the Paris stock exchange.
• It's possible to transform a PEL to a CEL.
• Since January 1, 2018, capital gains from the sale of shares are subject to a single flat-rate levy.

Minimum Holding Period for Term Deposit

• Minimum holding period for term deposit is 1 month.
• Since January 1, 2018, dividends received by a shareholder are subject to a flat-rate levy of 30% or taxed based on I'IR rate election.
• FCPI stands for Fonds Communs de Placement dans l'innovation (Common Innovation Investment Funds).
• A PEL has a minimum investment term of 4 years.
• The CAC 40 is a stock market index of 40 largest French companies on the Paris stock exchange.
• Net capital gains on disposals of securities are taxable from the first Euro.
• Government-regulated savings product example: Livret de développement durable et solidaire.
• The PER (Price Earning Ratio) corresponds to the capitalization rate of profits.
• For short-term investing, money market or bond funds are preferred.
• The tax applied to capital gains on bonds acquired after January 1, 2018 is a flat-rate levy of 30%, or taxation based on I'IR rate without reduction for holding period.
• EUROLIST is the regulated market that includes all listed companies on the Paris stock exchange.
• Savings placed in a Livret A account are entirely available.
• The option for taxation at the progressive income tax rate is comprehensive.
• Blue chip companies offer the most stability for portfolio diversification.
• The Livret Jeune account is closed by December 31 of the year of the holder's 25th birthday.
• Since January 1, 2018, the mandatory tax rate levied for income tax regarding dividends is 12.8%.
• The financial market consists of a primary and a secondary market.
• Generated interests on bank and super savings accounts are subject to social security contributions.
• Euronext Growth is the financial market for SMEs.
• A person who already holds a "Livret A" account can open a "LDDS" account.
• The maximum deposit on a "Livret A" account is €22,950.
• The volatility of a share measures the performance/risk ratio.
• An upgrade of a financial rating can influence the share price to rise.
• Dividends are subject to social security contributions at an overall rate of 17.2%.
• Credit rating agencies’ ratings are based on the financial strength and stability of companies.
• Savings placed in a "LDDS" account are fully available.
• Since January 1, 2018, dividends paid to a shareholder are subject to a single flat-rate levy of 30% or taxation based on I'IR rate.
• The examined criteria to open a LEP is the amount of income.
• The Autorité des Marchés Financiers (AMF) is a public body that supervises the financial markets.
• Since January 1, 2018, taxpayers who are taxed based on I'IR rate regime, can benefit from a 40% allowance.
• In the taxation of dividends paid since January 1, 2018, the flat tax rate is 12.8%.
• The tax rate on revenue applicable is 12,8%.
• The management of the assets in a portfolio can be "gestion libre".
• Collective investment involves the acquisition of shares in OPCVMs.
• To own a "Livret Jeune" the holder must be between 12 and 25 years old.
• The rating system ranges from A to D with intermediate deadlines.
• A low Price Earning Ratio implies a good value stock.
• From an economic point of view, wealth is composed of assets and liabilities.
• Savings are a part of income that is not consumed.
• Undertakings for Collective Investment in Transferable Securities (UCITS) are portfolios of marketable securities approved by the AMF.
• The particularity of the separation of property regime is independence of assets.
• The particularity of the universal community property regime is the merger of the assets of the two spouses.
• When no surviving spouse exists and a deceased leaves a father and a son, the son is the heir to 100% full ownership.
• Assessed base for the calculation of the annual pension is the average annual salary of the 25 highest-paid years.
• Historically, the French pension system (mandatory schemes) relies on a distribution mechanism.
• Income tax on individuals is generally calculated progressively.
• The contribution sociale généralisée applies to income from work. Taxes are due on both income and wealth.
• An "ordre" allows a family to determine the members who can receive the inheritance
• Gift tax exemption every 15 years to each of children is €100,000.
• When investing in bonds, the resale of the bond before maturity may result in the loss of capital.
• Shares give the investor ownership of the company.
• All UCIs are legally subject to the supervision of the AMF.
• The nominal value of a share is the fraction of the capital of a company.
• Since January 1, 2018, the flat tax rate on dividends is 12.8%.
• Since January 1, 2018, taxpayers who are taxed based on I'IR rate regime benefit from a 40% reduction.
• Since January 1, 2018, the mandatory tax rate levied for income tax regarding dividends is 12.8%.
• The financial market consists of a primary and a secondary market.
• The CAC 40 is a stock market index of the 40 largest French companies capitalization of the Paris stock exchange.
• The volatility of a share measures the performance/risk ratio.
• Credit rating agencies’ ratings are based on the financial strength and stability of companies.
• The diversification of a portfolio reduces the overall risk.
• Generated interests on bank and super savings accounts are subject to social security contributions.
• Minimum holding period for term deposit is 1 month.
• Securities delivering high return offer high dividends.
• For bonds, its value is very sensitive to interest rate movements.