Shares in the modern sense came into Russian reality in the 80s of the last century. This is a market economy mechanism that allows individuals to participate in the management of enterprises of almost all forms of ownership.
Instructions
Step 1
In fact, shares are designed to attract private capital into the turnover of enterprises, therefore, when companies need extra-leveraged funds or are in a stage of active development, they issue a certain number of shares. Thus, investments come to the company, which are subsequently returned to the investor who owns the shares in the form of dividends.
Step 2
The payment of dividends is always deferred, so the issuing company (the one who issued the shares) has the opportunity to have free funds and operate them at its discretion. Often, dividends significantly exceed the size of investments, and then they say that shares have risen in price, it happens, and that dividends are negligible, in which case the investments are paid off for a long time.
Step 3
The growth in the value of shares can be artificial, companies are profitable when their "share" is expensive, however, without real confirmation of the price of the financial document, there is a risk of "drawdown", i.e. a situation arises when shareholders have not “money” in their hands, but just paper.
Step 4
In order to start or resume the issue of shares, the company must notify the Federal Service for Financial Markets. The service controls the entire process and even tenders, although, in fact, it has no right to interfere. The same service calculates the possible number of shares, their type, value and correspondence to the share capital.
Step 5
A joint-stock company cannot place (“throw out”) shares on the market on its own. Therefore, he uses the services of an intermediary - an underwriter, it can be a bank or an investment company. It happens that an intermediary significantly adjusts the value of a share, and may even buy out the entire portfolio of financial documents himself. Obviously, a certain amount of shares gives control over the enterprise, and therefore companies tend to split the stakes and exclude the concentration of shares in the same hands.
Step 6
Shares can be issued multiple times. Those. by throwing securities on the market, the company can issue a new portfolio and put it up for sale again. At the same time, the previous shares will not lose their strength and financial security (unless, of course, we are not talking about fraud).
Step 7
The beauty of this type of securities is that they live as long as the enterprise is alive, the share loses its financial significance only when the issuing organization is liquidated. In addition, shares do not have a fixed income, so shareholders often become very rich people at the moment when the issuer begins to actively make money and, accordingly, pay dividends.
