Securities transactions

LHV offers multiple opportunities for growing your funds. Use our product filter to choose the right one for you. LHV cannot, though, suggest you specific securities to invest in, as you have to make investment decisions on your own, taking into account your risk tolerance.

You can buy or sell stocks in the internet bank section “Investing” → “Buy-sell” → “Stocks and index funds”. You can enter orders for buying/selling stocks 24 hours a day.

Order details:

From account - select the bank account where you would like to execute the transaction.
Transaction - choose whether you would like to buy or sell the stock.
Symbol - abbreviated name of the share. Click on the loop icon to search for the abbreviated name.
Quantity- quantity of the shares you want to buy or sell.
Price - for a market order, place a checkmark in the Market box.
Limit - for a limit order, set the limit price and the duration of the order.
Stop-loss - for a stop order, set the stop price and the duration of the order.

See how different order types work.

In LHV it is possible to invest in shares traded on OMX, XETRA, NYSE, NASDAQ and other stock exchanges. We have created a database of all the shares traded by LHV. If you cannot find the share you are looking for in the database then please contact our brokers by calling 6 800 420 or sending an e-mail to info@lhv.ee. Search for traded shares

Pre-market trading begins with LHV mobile and internet bank at 14.00 and lasts until 16.30. In LHV Trader pre-market trading begins at 11.00 (generally US pre-market starts at 11:00 and regular trading at 16:30).

You can use only day limit orders on the pre-market. Pre-market orders will be active until the end of regular trading and after that they will be cancelled. Those orders will not participate in after-market trading.

Pre-market trading involves a higher risk than regular trading. Please read about additional risks.

When purchasing funds, you first need to know whether its units are traded on a stock exchange or not.

In the context of exchange-traded funds, it is simple: they are traded on the stock exchange as shares, and they are purchased and sold under the ‘Buy-sell’ subsection of the INVESTING menu on the LHV Internet Bank, and selection “Stocks and index funds”.

If you want to purchase or sell fund units that are not traded on the stock exchange, you have to select ‘Buy-sell’ from the INVESTING menu, and selection “Fund units”. The price of your fund transaction will be calculated by the management company on the evening of the day of the transaction, so the exact transaction price will only be entered on the next banking day.

Transactions in fund units are carried out in accordance with the fund’s prospectus, including the time limit for the transmission of orders (see FAQ question “When do securities transactions take place”).

Market orders are used when certainty of execution is a priority over price of execution. This order type does not allow any control over the price received and your order will receive a price once it is executed. The order will be executed in full and you can access it under Pending transactions. An order which is submitted less than one hour before the market close may be executed on the next trading day. Once the order is executed, it is visible under Securities transactions.

N.B. The execution of a market order differs slightly on Baltic exchanges. In order to execute the order, 10% more money is reserved and the largest possible amount will be executed at the best possible price. The remaining part of the order will be cancelled regardless of the fact that it would have been possible to continue the execution with a less favorable price.

N.B. To prevent orders from being fulfilled at unexpectedly high prices, purchase orders at market price can only be entered when the stock exchange is open and our system has current information on the market price of the security.

Stop Loss (maximum loss) is designed to limit an investor’s loss on a security position, once the set level is reached, the security will be sold. N.B. When the specified stop price is reached, the stop order is entered as a market order. This means the trade will be executed, but not necessarily at or near the stop price. A stop loss order can be used when trading US shares and options.

Stop-limit order works similarly to standard Stop Loss order, but instead of converting to market order once the stop price is reached, stop-limit becomes a regular limit order once the stop price is reached. You can enter stop-limit order if you fill out both limit price and stop price field when entering your order.

Limit orders are used when you wish to buy a security for less, or sell for more, than the market price. The order might, however, never be fully executed, if the market price does not match the limit order price. N.B. A buy limit order can only be below the market price and a sell limit order above the market price, otherwise the orders are executed at market price. If it has not been possible to execute the order during the set timeframe, the order will be automatically cancelled and the money will be transferred back to your account in the currency the order was supposed to be settled in.

A Baltic securities account is an account opened in the Estonian Securities Register for holding Baltic securities. You can view your Baltic securities account number by selecting INFO AND SETTINGS “Agreements” in the internet bank.

Please note that you will be able to execute delivery versus payment (DVP) transactions on the next business day after the Baltic securities account is opened. You can execute exchange trades and non-payment transactions as soon as the Baltic securities account is active.

You can trade during regular trading hours. If exchanges are closed your order will be processed at the beginning of the next trading session. You can check trading hours here: www.worldtimezone.com

Good ’til cancelled order is valid for one quarter. In the beginning of each quarter all orders which have not been filled and are older than one quarter will be cancelled.

Currency is converted automatically at the moment a limit order is entered and when it expires or is cancelled, the money is repaid in the currency in which the order was entered, as it is not automatically converted back to the initial currency.

The money settles in the account in one to six days after you have sold the securities, depending on the exact fund or the market the securities are traded on. Detailed information can be found here. After the stated time has passed, the money can be transferred from the account. Before the settlement the money can only be used to buy new securities.

Fund manager	Transaction orders deadline	Transactions value date
East Capital Assets Management
Buy	T 8:00	T+3
Sale	T 8:00	T+3
JPMorgan Asset Management
Buy	From 01.04.2020, only the sale of fund shares is allowed
Sale	T 13:00	T+3
AS Trigon Funds
Trigon Dividend Fund
Buy	T 10:30	T+2
Sale	T 10:30	T+2
Trigon New Europe Fund
Buy	T 8:00	T+2
Sale	T 8:00	T+2
Swedbank Investeerimisfondid
Buy	T 15:00	T+1
Sale	T 15:00	T+3
Swedbank Robur Fonder AB (only Swedbank Savings Fund )
Buy	T 13:00	T+1
Sale	T 13:00	T+2
SEB Asset Management S.A
Buy	T 13:00 (starting from 06.01.2025: T 12:00)	T+2
Sale	T 13:00 (starting from 06.01.2025: T 12:00)	T+2
Avaron Asset Management
Buy	T 10:30	T+3
Sale	T 10:30	T+3
LHV Varahaldus
LHV World Equities Fund
Buy	T 15:00	T+1
Sale	T 15:00	T+3
LHV Euro Bond Fund
Buy	T 15:00	T+1
Sale	T 15:00	T+5

(1) T – transaction day. The abbreviations ‘T+1’, ‘T+2’, and ‘T+3’ refer to the settlement date of the transaction (in other words, the value date), which is one, two or three working days after the transaction date, respectively. Working days are calculated on the basis of the public holiday calendar of the country where the securities transaction took place. For example, the value date of a transaction in US shares made on Wednesday, 24 November, is Monday, 29 November, as Thanksgiving is celebrated in the US on 25 November. In comparison, the value date of a transaction on the same day (24 November) in Estonian shares is Friday, 26 November. NB! The days and dates are indicative.

Other securities deadlines	Value date
Stocks	T+2
- USA, Canada and Mexico	T+1
Bonds	T+2
- USA, Canada and Mexico	T+1
Options	T+1
Futures	T+1

Account position and balance are two different views of an account. The default account view is the account position.

The account position shows what will be in the account when the transactions have been finalised (settled). You can sell the shares in the position, but you have to wait for a real transaction to withdraw money from the account. If you have entered a stock order on day T, the real transaction will normally take place on day T+2 for stock exchange transactions.

The real settlement of transactions without and against payment takes place on the date included in the value date of the transaction (it is important to note that transactions without payment in foreign securities normally take place with a minimum time of T+5).

Your account balance shows the current state of your assets. Your account balance is particularly important when you want to perform transactions. In this case, you can see the actual receipt of money (or securities) into the account. As LHV is meeting the needs of its clients and allows them to perform a new securities transaction immediately after selling shares with the same money (otherwise they would have to wait for the settlement date before making the next securities transaction), it is more important to monitor the account position when trading.

When executing transactions, you can view them in the ASSETS AND LIABILITIES menu under ‘Pending transactions’ in the Internet Bank. Pending transactions can be cancelled by clicking on the ‘Cancel’ button at the end of the transaction line.

It is important to know if:

an outstanding securities order is not settled on the value date, the transactions will be cancelled on the working day following the value date by 17.00, at the latest, and an e-mail on the cancelled transaction will be sent to the person who gave the order.
a payment against a securities order is not settled on the value date, the order will be cancelled two working days after the value date indicated on the transaction order by 15.30, at the latest, and an e-mail on the cancelled transaction will be sent to the person who gave the order.

Settlement of fund transactions will always take place on working days, except for public holidays (including public holidays in the country where the fund is held). Transactions can only be cancelled before the deadline for transmission of the corresponding fund order. Once the deadline for the transmission of a fund order has arrived or passed, transactions can no longer be cancelled.

You can transfer securities to your account in LHV Pank or from LHV Pank to another bank in three ways:

in the form of free-of-payment transfer;
in the form of delivery-versus-payment; or
in the form of changing the account manager (Baltic securities only).

The easiest way is to perform a free-of-payment transfer: initiate the order on the Internet Bank, where you enter the security (or its ISIN code), followed by the quantity and price at which you want to transfer the securities, and the transaction and value date. Next, select the account manager where you currently hold your securities, and then enter the name and your account number where you currently hold your securities. NB! In order to carry out a free-of-payment transfer, please be sure to forward the transfer order to your current account manager, i.e. bank. Both submitted orders should be presented with identical data.

For a free-of-payment transfer, it is important to know the following:

the transaction date can be up to 2 working days in the past;
the transaction date should be on or before the value date;
the earliest possible value date is the working day following the entry of the Baltic securities order;
it is only possible to move foreign securities between different account managers in such a way that the ownership of the securities does not change during the securities transfer (transaction between the same individual or between the same company);
in the context of a free-of-payment transfer order between different account managers, the earliest value date is 5 working days in the future (T+5) from the working day on which the order is submitted. The actual value date depends on the counterparty and may be delayed due to the complexity of the transaction;
in the context of foreign securities, it is necessary to include in the further information of the transaction the details of the account manager of the counterparty’s securities account (the external manager of the nominee account and the account number and the name of the credit institution where the bank’s nominee account is opened). To obtain the necessary information, please contact the counterparty’s bank. You will receive the LHV account manager details automatically after entering the counterparty’s details and clicking the ‘Preview’ button. Save them for later submission to the counterparty in the counterparty’s bank.

In order to do a delivery-versus-payment transfer with Baltic securities you can initiate the order on the Internet Bank, where you can fill in necessary information. To perform a delivery-versus-payment transfer with foreign securities, please submit a completed and signed order form to the bank (see how to submit a delivery-versus-payment (DVP) order).

If the transaction is carried out within LHV, see question 18 (how to perform a securities transfer if the accounts of the buyer and the seller are located in LHV Pank).

To change the account manager, please come to the office or contact our client support for more information. The entire Baltic portfolio, including Baltic securities, will be transferred when the account manager changes.

Transferring Baltic securities to your account at LHV Pank is free of charge. When transferring foreign securities or withdrawing securities from the account, you should also take into account the service fees established in the LHV price list.

A delivery-against-payment transfer can be made:

with the securities listed on the Baltic Stock Exchange or over-the-counter securities (e.g. shares in a limited liability company) registered with the Baltic Central Securities Depository. A prerequisite for the transaction is that both parties to the transaction have opened a Baltic securities account;
with foreign securities listed on a foreign stock exchange if the transaction takes place within LHV Pank. This means that the seller and the buyer are both clients of LHV Pank and have an account with LHV Pank.

NB! It is important to know that it is only possible to move foreign securities between different account managers in such a way that the ownership of the securities does not change during the securities transfer (transaction between the same individual or between the same company) and, therefore, it is not possible to perform a delivery-against-payment order between two account managers.

In order for a transaction to take place, both parties to the transaction should submit a sales or purchase transaction order against payment to their account manager (bank), respectively, and the details on both orders should match exactly, otherwise the transaction will not take place. In order to initiate a transfer with Baltic securities, you can do so in Internet Bank, where you enter the security (or its ISIN code), followed by the quantity and price at which you want to transfer the securities, and the transaction and value date. Next, add the counterparty details. For foreign securities delivery-versus-payment transaction, the order form to be submitted to LHV Pank can be found here.

Delivery-versus-payment transaction involving foreign securities between different account managers can occur if the custodian and/or the broker holding the securities permits such a transaction. Generally, foreign securities can be transferred between different account managers only if the ownership of the sercurities does not change during the transfer (the transaction takes place between the same private person or the same company).

Tips for completing the form

Fill in your own and the counterparty’s bank account details. In the event of Baltic securities, please also indicate the Baltic securities account numbers of both parties and the details of the account manager (BIC code).
In the ‘Transaction type and details’ section, select ‘Against payment’ as the transaction type and either ‘Purchase’ or ‘Sell’ depending on your side in the securities transaction.
Enter the details of the security to be transferred (name of the security, ISIN code, quantity and transaction price, currency, total amount, transaction date and value date).

When specifying the transaction date and value date, please note the following restrictions:

the transaction date can be up to 2 working days in the past;
the transaction date should be on or before the value date;
the earliest possible value date is the working day following the day on which the order is entered;
please leave point 2 (‘To be completed in case of a limit order’) of the order form blank, add a digital signature to the order, and send the form to the following email address: info@lhv.ee.

On the value date, if both the seller and the buyer of the securities have submitted their transaction orders on time and the details match, the bank will transfer funds from the buyer’s current account to the seller’s current account and securities from the seller’s account to the buyer’s account.

You should also take into account the service fees, which are listed in the LHV price list.

You can transfer securities purchased for the wrong account to the correct account by means of a free-of-payment transfer (see how to perform a securities transfer if the buyer and seller accounts are held with LHV Pank?).

Please note that if you use the investment account system to declare securities income and, as a result of an incorrectly entered transaction, the securities were credited to your ordinary current account instead of your investment account, you should declare your current account as an investment account from the date of the acquisition of the securities until the date of the transfer of the securities when you file your next income tax return. More information is available on our homepage.

Within the bank, it is possible to carry out securities transactions between different persons with securities listed on the Baltic Stock Exchange, OTC securities registered in the Baltic Securities Register (e.g. shares in a limited liability company) or foreign securities.

There are two ways to transfer securities within a bank:

free-of-payment (FOP) transfer, i.e. the securities are transferred from the seller’s account to the buyer’s account, with no real movement of funds between the accounts;
delivery-versus-payment (DVP) transfer, i.e. securities are exchanged for funds, i.e. securities are transferred from the seller’s account to the buyer’s account and funds are transferred from the buyer’s account to the seller’s account.

In order to carry out a free-of-payment or delivery-versus-payment transfer, both parties to the transaction (i.e. both the buyer and the seller) need to select the GROWING FUNDS → ‘Instrument transfer’ view and select „Free of payment“ or „Delivery versus payment“ tab on the Internet Bank and complete the securities transfer order with the following information.

Content of the transaction:

purchase or sales – the party from whose account the securities are withdrawn chooses ‘Sell’ and the other party who receives the securities chooses ‘Purchase’;
name of the security to be transferred (ISIN code in the context of foreign securities);
quantity and price of the securities (the price indicated in the order will be reflected in your account statements and in the LHV Tax Report as the purchase or sales price of the securities, no funds will actually move on the basis of this price);
the transaction date can be up to 2 working days in the past;
the transaction date should be on or before the value date;
the earliest possible value date is the working day following the entry of the order in the context of an intra-bank transaction with LHV. Details of the counterparty:
account manager: AS LHV Pank
name of the counterparty: the buyer indicates the name of the seller and the seller indicates the name of the buyer;
IBAN to or from which the securities are to be transferred. The Baltic securities also require the Baltic securities account number, which can be found on the order page or in the Internet Bank view INFORMATION AND SETTINGS → “Agreements”.

NB! The orders of both parties should be identical (i.e. quantity, price, transaction and value date, etc.).

To perform a delivery-versus-payment transfer with foreign securities, both parties to the transaction (i.e. both the buyer and the seller) have to submit a completed and signed order form (see how to submit a delivery-versus-payment (DVP) order).

The maximum amount depends on the market value of the collateral held in your account and the general limits determined by LHV Bank. At the moment, you can borrow up to 100,000 (one hundred thousand) euros, or its equivalent in a foreign currency, through our internet bank without LHV Bank’s additional approval.

The value of the collateral is calculated by multiplying the market value of securities and currency held in your account by the collateral rate. View the list here.

The sufficiency of the collateral can be observed under Summary statement at ASSETS AND LIABILITIES.

Margin is repaid automatically. Every amount received in your account reduces the amount of margin used whilst margin always remains available to you to the extent of the available own funds. If you used the margin in one currency and transferred another currency to your account, you have to convert the currency yourself in order to repay the margin, as there is no automatic conversion. You have to pay interest only for the days when you used the margin.

Interest is withdrawn from your account on the 5th day of every month.

You can buy or sell bonds in the internet bank section “Investing” → “Buy-sell” → “Bonds”. Choose the desired bond from the drop-down menu, enter the amount, price and the duration of the order.

When entering the price it is important to note that clean price is used. Clean price means that in the transaction the accrued interest is added to it and the final market price is the sum of the clean price and the accrued interest.

Clean price + accrued interest = dirty price

Clean price is the price of a bond without the accrued interest.
Dirty price is the price of a bond with the accrued interest.
Accrued interest is the interest accumulated in the period since the bond’s last interest payment.

When submitting the order, first the clean price is reserved on the account along with the transaction fee. When the order is executed, then the dirty price, which includes the accrued interest and transaction fee, is entered for the order.

Participation in the shareholder meeting is possible if is supported by our sub-custody. The cost of participation is 10 EUR, as set out in our price list.

Information and voting details for companies listed on European stock exchanges can be found from the ‘Investing’ → ‘Corporate actions’ section of the internet bank.

We don’t notify clients about shareholder meetings for companies listed on U.S. stock exchanges. If you wish to participate in a shareholder meeting of a company listed in the U.S., please send an e-mail to info@lhv.ee. Having received the application, we will check whether it is possible for you to participate in the shareholder meeting, and, given that our sub-custody permits it, will send you over the necessary information and resources to vote.

We notify our clients of corporate actions only when the company is officially registered in the European Union. For US, and other region’s companies’ corporate actions we will not notify our clients. If you wish to take part in the corporate actions of US or other regions, send us an email at info@lhv.ee.

To start investing in your child’s account, a parent will have to conclude an investment services agreement in the name of the child. To do so, log into the internet bank and select Child Account view under your name at the top right. Then, select Information and settings → Agreements and conclude an investment services agreement. If you would like to purchase securities that are being traded on the Baltic stock exchanges for your child’s account, then you will also need to open a free Baltic securities account.

First steps in the field of investing

If you have conducted securities transactions on behalf of your child and earned investment income, the Tax and Customs Board (MTA) wishes to know about it.

The MTA’s website includes an overview on who is required to file an income declaration.

Here is a practical guide on how to obtain the data you need from the internet bank so you can file a declaration.

Ordinary system – a tax report can be requested by a child or their parent, by logging in to the LHV internet bank and selecting the child’s role. The tax report will open in the section “Assets and Liabilities” → “Tax report”. After checking the data, copy it to the corresponding tables in the child’s income tax return in the e-MTA and submit the return there. In the case of the ordinary system, a tax return may also be filed if you have incurred a loss on sale of securities and you would like to carry it forward to the next year to offset future income accruals.

Investment account system – an investment account report can be forwarded to the Tax and Customs Board by a child or their parent, if the parent logs in to the LHV internet bank with the child’s ID card or password.

The child’s parent can create a password for the child if they log in to the LHV internet bank, switch to the child’s account and select the option “Information and Settings” → “Password management”. If you do not see this option, contact LHV customer support to set up these privileges. The child’s username can be found under “Information and settings” → “Data”.

The investment account report can be forwarded to the Tax and Customs Board from the “Assets and Liabilities” → “Investment Account Report” section of the internet bank. If everything is correct, submit the report by clicking on the button “Saada EMTA-sse”. Then continue completing the income tax return in the e-MTA and confirm it there.

If the child has an ID-card, they can submit the income tax return in the e-MTA themselves. If the child does not have an ID-card, then the parent can submit the income tax return on behalf of the child by logging in to his/her own e-MTA and selecting the child’s role.

The declaration can be corrected later, for up to three years. Do bear in mind that if a tax liability arises for you during that time, interest will be charged on the amount retroactively.

The Tax and Customs Board has also prepared a set of instructions for declaring income.

From time to time, we update the funds and securities in the Growth account selection. The reason behind this might be, for example, the fact that we are no longer able to buy the given fund or a significantly better fund has entered the market, which is more profitable for our customers. In this case, we will notify customers of the change and allow them to update the funds selected for their Growth Account. If for some reason, you have not updated the funds, we will distribute the money invested in your Growth Account proportionately between the remaining funds. For example: if you previously had 50% invested in the AB Fund and 50% in the XY Fund in the Growth account, after the disappearance of the AB Fund, we will invest 100% in the XY Fund.

The settlement of securities transactions means the finalisation of securities transactions. The settlement period of a securities transaction is the time between the transaction date (the month, day and year when the order is executed on the market) and the value date on which the transaction is deemed to be final. When buying or selling securities, both the buyer and the seller must fulfil their obligations to complete the transaction on the value date. During the settlement period, the buyer has to pay for the securities, and the seller has to deliver the securities. On the last day of the settlement period, the value date of the transaction, the buyer becomes the owner of the securities.

Depending on the securities transaction, LHV Bank performs the following operations to settle the transaction:

in the case of a purchase of securities (stock exchange transaction and/or delivery versus payment securities transaction), LHV Bank transfers the securities indicated in the order to the client’s securities account and deducts the purchase amount from the client’s current account;
in the case of a sale of securities (stock exchange transaction and/or delivery versus payment securities transaction), LHV Bank deducts the securities specified in the order from the client’s securities account and transfers the money received from the sale of securities to the client’s current account;
in the case of a purchase of fund units, LHV Bank deducts the amount of money required for the investment from the client’s current account and transfers the fund units to the client’s securities account;
in the case of sale of fund units, LHV Bank transfers the money received from the sale of fund units to the client’s current account and deducts the sold fund units from the client’s securities account;
in the case of a free of payment securities transfer, LHV Bank deducts the securities to be transferred from the client’s securities account and transfers them to the account indicated in the client’s order, based on the acceptance order of the counterparty to the transfer;
when executing an order to accept securities received by a client, LHV Bank transfers the securities received on the basis of the order to the client’s securities account.

Please read more about the settlement of securities transactions from Information on investment services available on our homepage.

Partial settlement is a situation where a transaction cannot be fully settled because the full quantity of securities needed to settle the transaction is not available in the seller’s account. Therefore, any transaction settled for less than the full amount is considered to be a partial settlement of a securities transaction.

The main reason for partial settlement is a situation where the seller of securities does not have enough securities to be sold on its account to transfer to the buyer’s securities account at the value date. To ensure that the value date of the entire securities transaction is not delayed, partial settlement is used with certain custodians and on certain markets, thereby ensuring the transfer of securities in the seller’s account to the buyer’s securities account.

Typically, transactions made with stocks and bonds are settled on the second business day after the execution of the transaction order. If the transaction has not been settled by that time, it means that the seller does not have enough securities by the value date. Consequently, the settlement of the entire transaction may be delayed until all the securities being sold are available.

As of 01.01.2023, the European Union Regulation (the so-called PRIIPs Regulation) entered into force, according to which only investment funds with a PRIIP-compliant key information document (KID) can be sold to investors. If the purchase of a fund is restricted in the Internet Bank, then to our knowledge the fund manager has not prepared the necessary KID document yet. As a general rule, fund managers should prepare the necessary documents by the end of January 2023, and as soon as they do, the restrictions on purchases will disappear.

You can conveniently close your Growth Account yourself in the Internet or Mobile banking. The prerequisite is that you have sold the securities in the Growth Account and the money has been transferred to your current account.

However, sometimes closing the Growth Account is not absolutely necessary, and there are other options for receiving the money or temporarily suspending the service.

If you want to temporarily stop investing, select “Stop automatic investments” in the Growth Account settings and confirm your choice. This will prevent accidental reinvestments from microinvestments, dividends, or standing orders.
If you use an LHV bank card and have activated micro-investing, please turn off this service. To do this, remove the “tick” from the option “I use micro-investing and contribute with every card payment” and confirm the change. This will prevent money from accumulating in the Growth Account again.
If you wish, you can also withdraw money partially by selling a suitable portion of the securities in the Growth Account. In the event of a sale, a service fee will apply according to the price list. You don’t pay an administration fee for an empty Growth Account.

If you are still sure that you want to terminate the Growth Account agreement, you can do so in the Growth Account settings view in the Internet or Mobile banking. You can sell securities in the Growth Account by selecting Money Growth → Purchase and Sale → Shares and Index Funds from the Internet banking menu or Investments → Money Growth → Stock → Sell from the Mobile app menu. Please note that when selling, a separate sales fee applies to each fund according to the price list. The income from the sale of securities will automatically be credited to your current account.

If you need assistance with selling securities, please contact our brokers at (+372) 680 0420.

A U.S. person is defined as:

a U.S. citizen,
a legal entity incorporated in the United States, or
a U.S. tax resident (individual).

An individual is considered a U.S. tax resident if they:

hold a Green Card, or
have been present in the United States for at least 31 days during the current year and a total of 183 days over the past three years (known as the Substantial Presence Test). For more details, please refer to the U.S. Internal Revenue Service (IRS) website.

Certain visa holders (e.g. students, athletes, diplomats, NATO employees) may be subject to exceptions that prevent them from being classified as U.S. tax residents, even if they have spent extended periods in the U.S. For more information, see how a foreign individual may qualify as a U.S. tax resident.

Unfortunately, LHV is unable to offer investment services in Finnish shares to Finnish persons. This restriction is based on Finnish legislation, which states that a Finnish citizen, tax resident, or entity registered in Finland:

may only hold shares in Finnish-registered companies in their own name and on a personal securities account, and
may not use the nominee account system*.

*Usually, a securities account is opened in the name of an individual or company. A nominee account operates differently: securities are held in a pooled account owned by a bank or investment service provider. In this setup, the bank or provider acts as a nominee and keeps internal records of which securities belong to which clients. In simple terms, your name does not appear in the central securities register; only the name of the nominee (e.g. the bank) is visible. Your securities are still legally yours but are held together with other clients’ securities in a single account.

The purpose of this Finnish regulation is to ensure fair taxation and transparency of investments. More detailed information can be found in the guidelines published by the Finnish Tax Administration (VERO).

Definitions

A share represents an investor’s ownership in a corporation. The owner of the share (a shareholder) is entitled to a proportion of the corporation’s distributable profits in the form of dividends.

A bond represents a loan made by an investor to the bonds’ issuer (typically a corporation). The owner of the bond receives regular interest payments from the issuer until the bond matures, at which point the principal of the bond is repaid to the investor in full.

Developed countries are, in general, countries with a mature economy and moderate growth potential (e.g., USA, Japan, Sweden, Switzerland).

Developing countries are, in general, countries with higher growth prospects, but with a less stable economy (e.g., China, India, Russia, Brazil).

After you log-in to the internet bank, LHV’s alternative investments service will display the most recent status for your alternative investment accounts. Unfortunately, it is not possible to display historical data on investments. Service is available to all LHV Pank clients.

We display different indicators for each connected account, depending on the platform. Below is a more detailed description of the background information for each platform.

Quantity shows the number of units in the given investment. Purchase Price shows the historic average acquisition cost per unit. Calculation follows the first in, first out (FIFO) method, i.e. the first units purchased are sold as a matter of priority. Realized Income column is not in use in the case of Coinbase. Market Price shows the last available market price per unit based on Coinbase data. Change shows the amount of profit as a percentage of the acquisition price.

Profit shows the difference in Market Value from the Purchase Price, in euros. Market Value displays the entire position’s value in euros (i.e. quantity x market price). EUR row displays the available cash balance in the Coinbase platform.

In the consolidated view we display the 9 largest Crowdestate loans with ‘Funded’, rest of the loans are consolidated together in the ‘Other positions’ row. Available cash shows your cash balance on the Crowdestate investment account, which can be immediately used or withdrawn.

Quantity shows the number of loan agreements. Purchase Price shows the total cash amount invested into the loan agreement, not taking into account repayments. Realized Income shows all payments made from the loan agreement, for example, interest, interest on arrears, and principal payments. Market Price shows the principal balance of the loan agreement. Change shows the amount of profit as a percentage of the purchase price. Profit shows the difference between the sum of market value and realized income over the purchase price, in euros. Market Value displays the entire position’s value in euros (i.e. quantity x market price).

In the consolidated view we display only loans with ‘Confirmed’ status on EstateGuru platform. Up to 9 individual investments are displayed in detail. If you have more than 9 different loans, we display the 9 largest investments in terms of market value and the remaining loans are consolidated together in the ‘Other positions’ row. In the platform, on the ‘Available cash’ row, you will see the cash balance in euros, after the reservations have been deducted.

Quantity shows the number of loan agreements, each unique loan has a quantity of 1. Purchase Price shows the initial investments into specific loan agreement, not taking into account repayments. Realized Income shows all payments made from instruments, for example, interest, interest on arrears, and principal payments. Market Price shows the last available principal balance in the EstateGuru platform. The Purchase Price, Realized Income and Market Price express the value per one loan. Change shows the amount of profit as a percentage of the acquisition price. Profit shows the difference between the sum of market value and realized income over the purchase price, in euros. Market Value displays the entire position’s value in euros (i.e. quantity x market price).

In the consolidated view we display your 9 largest Funderbeam investments individually and the rest of your investments are consolidated together in the ‘Other positions’ row. Available cash shows your cash balance in euros, without considering potential reservations.

Quantity shows the number of units in the given instrument. Purchase Price shows the weighted average acquisition cost per unit. Market Price shows the last Funderbeam trade price per unit. Purchase Price and Market Price are shown in the original currency of the instrument, e.g. GBP, EUR etc.Realized Income column is not in use.Change shows the amount of profit as a percentage of the acquisition price.Profit shows the difference between market value and the acquisition price. Market Value shows the value of the entire position. Profit and Market Value are always shown in euros.

Professional client is an LHV client who meets at least two conditions as follows:

Has completed 10 security transactions in an significant amount (at least 32,000 euros) per quarter during last 12 months.
Security portfolio value exceeds 500,000 euros
Is working or has been working at least one year in the financial sector positions that requires knowledge about security trading.

In order to qualify to the status of professional client send filled and signed form to maaklerid@lhv.ee. If evaluation against the conditions is successful a client has full access (purchase and sales transactions) to US-registered ETF-s. Professional client also has a wider access to complex bonds and REITs.

Similar ETF-s from European exchanges can still be traded without being a professional client. You can find an overview from the following links: https://www.justetf.com/ or https://www.xetra.com/xetra-en/instruments/etfs-etps/products.

A Baltic securities account is an account opened with the Estonian Central Securities Depository for holding and trading Baltic securities.

Receivables from securities include dividend and interest payments that have been declared but have not been paid out yet. If ‘Account position’ is selected from the ‘Options’ menu in the top right corner of the LHV Internet bank, then such receivables are included in your summary statement. This amount can be withdrawn from the account and used for the purchase of new securities only after the payment has been received.

Corporate actions

Ex-Dividend Date

When dividends are declared, the Ex-Dividend Date is set. From that date, the person who acquired the shares is no longer entitled to receive dividends for the relevant financial year. In the context of Ex-Dividend Date transactions, the seller, not the buyer, receives the dividends. As the Ex-Dividend Date approaches, the share price rises. On the Ex-Dividend Date, the share price decreases.

Example: Notice from Tallinna Kaubamaja: ‘As a result of the above, Tallinna Kaubamaja Grupp AS announces that the date of the change of the rights attached to the securities (Ex-Date) is 31 March 2022. From that date, the person who acquired the shares will not be entitled to receive dividends for the financial year 2021. The dividend will be paid to shareholders on 6 April 2022 by transfer to the shareholder’s bank account.’

Record Date

The declaration of dividends sets the Record Date for the list of shareholders. On that date, the list of shareholders entitled to receive dividends is fixed. The Record Date means that, as of that date, the acquired shares have been settled in the shareholder’s account and the shareholder has been entered in the share register.

Dividends are paid on the basis of the Record Date of the list, which means that dividends are paid on the basis of the holders (shareholders) of the company’s shares entered in the share register on a given date.

Example: Notice from Tallinna Kaubamaja: ‘The list of shareholders entitled to receive dividends will be fixed on 1 April 2022 as at the close of business on the Nasdaq CSD Estonian settlement system. The dividend will be paid to shareholders on 6 April 2022 by transfer to the shareholder’s bank account.’

Payment Date

The Payment Date is the date on which the declared dividends are scheduled to be paid to eligible investors.

However, in most cases this cannot be done. Income tax on dividend payments is always withheld under the laws of the payer’s country of residence and regardless of whether or not the investment account system was used for declaration. If you have received dividends on foreign shares to your investment account on which income tax has not been withheld (e.g. in case of Latvian shares or Growth Account fund units), you can defer the tax liability (see declaring dividends on foreign shares in the investment account system).

The standard rate of withheld tax on dividends is the national tax rate at the time of share registration.

When a company creates a new independent company by selling or distributing new shares in its existing company, this is called a spin-off action.

Within a spin-off action, the company divests part of its core business and distributes shares in the new company to existing shareholders as at a date specified by the company. The company determines the date on which the new shares will be issued to the shareholders, but the new shares will be reflected on the account at the moment the new shares are received by LHV Pank from the account manager, i.e. the counterparty.

We can offer our clients the possibility to vote at shareholder meetings if our account manager allows it. The price list for voting at the shareholders’ meeting can be found in the LHV Pank price list.

The information on meetings and voting materials for listed companies in the EU Member States, including Iceland, Liechtenstein, and Norway, can be found in the GROWING FUNDS section → ‘Corporate actions’.

We do not inform clients about meetings of listed companies in other countries. If you would like to vote at a shareholders’ meeting of one of these companies, please send your request to info@lhv.ee. If our account manager mediates your participation, we will send you the voting materials.

For each voluntary corporate action (in case the information is sent to the bank), the shareholders of LHV Pank, who are also its clients, will be informed and redirected to the Internet Bank menu item GROWING FUNDS → ‘Corporate actions’. The conditions of participation and the options are established with the action.

To take part in a corporate action, all a shareholder has to do is make a request. If there is a desire to select the ‘Default’ option in a corporate action, the shareholder does not have to do anything and the ‘Default’ option specified in the action is applied.

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