In fact, the opportunity for investment largely depends directly on the status of the investor. This, of course, is not about financial status, but about career. Thus, military personnel have some restrictions in the use of investment instruments, but this does not mean at all that they cannot engage in investment activities. So, you can always find a workaround in the form various possibilities both at the official level and beyond. Below I will talk about whether military personnel can be invested and what opportunities they have in the way of their own enrichment.
Can military personnel invest: an introduction
I’ll go ahead and say right away that military personnel can invest. I recently talked about how to invest as an individual. And in fact, in the vast majority of these methods are suitable for military personnel.
On the other hand, there are certain restrictions or investment restrictions for military personnel that are associated with their position. So, there is even legislation that prohibits military personnel from engaging in any additional wage activities other than teaching creativity and science. Thus, they cannot engage in any business activity, or help others in business.
But, no one forbids military personnel to buy and sell securities, receive dividends and thus earn on investment activities. Here it is worth noting right away that, in a broad sense, investing in securities is a way to manage your funds, and not engage in investment activities.
At the same time, military personnel are prohibited from participating in the meeting of shareholders, since they are prohibited from participating in the organization of commercial enterprises. In addition, military personnel should not have any conflicts of interest. In addition, I would like to add that high-ranking military personnel are prohibited from taking advantage of foreign earning opportunities, because they may have important data.
Violation of a number of rules by a soldier can lead to his dismissal. Therefore, even when buying securities, it is worth considering whose they are. Therefore, military personnel can buy and sell, for example, securities of Russian companies, but you should avoid participating in foreign ones. How to avoid this, I will tell below.
Delving into the details
The thing is that when choosing securities, they have a special code, which helps to determine which country this or that security belongs to. It is also worth noting that the security prefix determines its legal issue, which means that even if a security is traded in Russia, this does not mean at all that it is Russian-made. So, the prefix of Russian securities is RU, but if you see a different prefix, this means that the paper is a foreign issue.
It should be understood that foreign securities are also available on the Central Moscow Exchange. Such securities are called ETFs and there are two types of such securities, namely FinEx and ITI Fund. In the case of FinEx, the prefix is IE, which is the code for Ireland. ITI Fund are Luxenburg notes and have the prefix LU. Therefore, some military personnel will not be able to buy such securities due to a number of restrictions.
In addition, there are mutual funds on the exchanges, but you can also determine their ownership using prefixes that are identical to those described above, so this will not be difficult.
As we can see, a number of opportunities are open for military personnel, and the restrictions themselves depend, first of all, on the position of the military. After all, the higher the rank, the more restrictions there will be. In this article, I talked about whether military personnel can invest, as well as what opportunities are open to such investors. As for securities, you should immediately pay attention to the country of issue, because otherwise there may be certain consequences, and I described above how to determine this.
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