Share / Stock

A share is a non-expiring security that embodies ownership.

The share has no expiration date securities, which has no repurchase or redemption date, but can be sold to other investors at any time. The share embodies an ownership relationship and is the majority of the shares common stock, this is the most common type of stock that virtually anyone can access. There is more besides preference shares, interest bearing share and convertible share also, but further on we will deal with the characteristics of the common stock.

The common stock share embodies an ownership relationship, moreover, each share has exactly the same share of ownership. The entire registered capital and listed on the stock nominal value quotient shows how many shares the company's ownership is divided between. Various rights and liabilities arise from the ownership relationship. The shareholder is entitled to participate in the company's general meeting, has the right to vote and can also share in the company's results. This share is dividend. 

The shareholder is responsible for the company's liabilities in that, in the event of the company's collapse, his share may be devalued to zero. Conversely, if the company performs well, the value of the stock increases, the shareholder exchange rate gain reaches However, it is important that bankruptcy proceedings obsession liquidation shareholders are the last to benefit from the remaining corporate assets, creditors, bondholders and suppliers all precede them. 

There are basically two ways to get shares in a company: initial public offering through or by trading the shares. Shares are traded in the stock exchange. And to access the stock exchange system, we need a brokerage firm or a bank.

An initial public offering public offering (IPO) generally refers to issuance of shares prior to initial public offering on the stock exchange. The IPO is therefore the process when a company decides to publicly sell its shares to be issued as part of a capital raise, i.e. a certain percentage of its ownership, to those who wish to invest. From the point of view of the company, the meaning of the transaction is that it exceeds the nominal value at exchange rate investors will be able to subscribe to the shares. The amount of this surcharge depends on the company's background, results, market position, expected operation and is specific to the specific business sector and country benchmarks is a function of   

On the part of the company, a brokerage firm or bank is needed for the technical handling of the issue and for the recruitment of customers. The company describes its results and plans to potential investors in an issue prospectus. This documentation auditor authenticated and finally approved by the stock exchange supervision. At the end of the process, the owners can buy the shares even before the start of stock exchange trading. 

In itself, the presence on the stock exchange can be an advantage for both the investor and the owner. From the investor's point of view, the operation of the company becomes public and more transparent. And from the company's point of view, it may become easier to raise funds later. Of course, a initial public offering also has many risks, since in the case of negative news concerning the company, the falling public price of the company's shares in itself shows the trouble.