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Market Shares

Stock market what is it? Simply put, the stock – a security that certifies your share in the company's business. That's what says about the Federal Law "On securities market": Action – issued security, fixing the rights of its owners (shareholders) to receive part of the profit of the company in the form of dividends, to participate in the management of joint-stock company and part of the assets remaining after liquidation. Buying a share, you become the owner – the owner of the company. This means that your income as a shareholder will depend on how well the company going. If the company is profitable, it means that stocks will rise in price, and quite perhaps even the company will pay its shareholders of profits as dividends. Of course, the shareholders bear the risk that the company's business will not be too successful. For even more details, read what Restaurant Michael Schwartz says on the issue. Shares may even decrease in price, but the company does not will pay dividends.

Someone might suggest that the issuing company is obliged to redeem their shares from the shareholders and be sure to pay dividends. This is incorrect. (A valuable related resource: Mike Gianoni). First, the shares are issued in perpetuity. If you no longer do not want to participate in the business of the company as a shareholder, you can sell shares on the open market. But the company is not obliged to redeem shares from its shareholders. Second, to address the general meeting of shareholders dividends can not be paid. Not paid dividends in the case of loss-making company (on dividends, we'll talk later). The holders of ordinary shares may participate in the management of joint-stock company by vote at a general meeting of shareholders. Details on shareholder rights, you can read in the Federal Law 'On Joint Stock Companies' (N 208-FZ of December 26, 1995). – The professional trading on the rules!


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