A share is an equity security, in which the rights of its holder to receive dividends (part of the profit of a joint-stock company), participation in the management of the company and part of the property in the event of its liquidation are enshrined. The authorized capital of the joint-stock company consists of the sum of par values of shares.
Instructions
Step 1
In accordance with the legislation, a share is classified as equity securities. It is mass-produced, each share from the series is no different from the other. Moreover, each share issue must be registered in accordance with the established procedure. Usually, the shares have a non-documentary form, bearer shares are absent in Russian practice.
Step 2
Shares, like all securities invested in pooled capital, have a certain rate of return. But only a share gives its owner (shareholder) the right to vote, or the right to manage a joint-stock company. This is the only security related to the management of an organization.
Step 3
In accordance with the legislation, the owner of a security is endowed with the following rights: - to receive part of the profit of a joint-stock company (dividend), - to participate in the management of a joint-stock company, - to a share of property in the authorized capital, - to freely dispose of a share (sale, donation, exchange, etc. etc.), - for the acquisition of newly issued shares of the company, as well as other rights prescribed in the charter of the organization.
Step 4
Shares can be ordinary (common) and preferred. An ordinary share gives the right to vote at the general meeting of shareholders and other rights specified above. The preference share does not give the opportunity to manage the company, but its owner has the right to receive a fixed dividend and the preemptive right to part of the assets in the event of liquidation of the joint-stock company. However, in some cases, the owner of a preferred share obtains voting rights, for example, in a situation where the company does not fulfill its obligations to pay a specified dividend.
Step 5
As a rule, when buying shares, an investor pays attention not only to the dividend yield of the share, but also to the market price of the share. The greatest income can be generated by buying and selling shares on the stock market. In this case, the investor earns by changing their prices. However, unlike the right to a dividend, the right of the owner of a share as a property is not only an opportunity to receive income from transactions on the market, but also a loss from such transactions.
